Exploring the impact of post-secondary cuts on Lethbridge’s economy

In discussion was the financial benefits provided to the region by the University of Lethbridge and Lethbridge College and how funding cuts by the province in Budget 2021 have impacted the economy.

READ MORE: U of L, Lethbridge College react to Budget 2021, cuts in funding

To begin, Vos touched on what consumers expect from the ‘business of education’. She noted they look for communication skills, a team environment, civic involvement, project management and leadership from the education sector – points that have been impacted by cuts in the institutions’ budgets.

She remarked that, “if we are going to ask our institutions and our employers to work with less, what tools can we then get from the government to help us do that?”

Vos noted when planning for the future, it’s important to consider the costs for the government, for employers and for students.

The government benefits from education with an increased tax base, access to research and development, and social responsibility. Employers can benefit from increased productivity and the acquisition of knowledge and skills, while for students, their benefits include the potential for increased income, economic equity and networking – making connections in industries in which they may want to work in following their post-secondary education.

On the economic side, Vos stated that the University of Lethbridge alone contributes $1.7 billion every year to the provincial economy with about half of that staying in Lethbridge. She noted as well that about 70 per cent of the students that attend the U of L arrive from outside of Lethbridge, with 35 per cent coming from Calgary. This in turn has a significant impact on the local economy with house rentals, groceries, business at community restaurants and other entertainment centres. Vos added students attending Lethbridge College from outside of the city also add a boost to the regional economy.

Vos commented that she, “would argue that the value of the University of Lethbridge and the value of the [Lethbridge] College is considerable in our city.”

“If we just even take the U of L and we take that money out of our economy, that could create a crisis, so we need strong educational institutions in our community.”

She said the labour force of students is needed to have a successful business community in the city.

“When our students aren’t here, our city isn’t as full and when we don’t have access to research, our potential is not as full, so those changes to budgets have [a] severe impact on our local economy.”

Vos also asked if funding cuts to both Lethbridge College and the U of L will likely have a short and long-term impact on Lethbridge’s economy. Her first “instinctual answer” was yes.

“What are the opportunities? How can we look back to our bullseye of communication skills, team environment, civic involvement, project management and leadership? Does that change the actual coming into the university now? No. Does that change the really, really tough decisions that leadership from those institutions have to make? No.”

“But together we can show the government there is a better way. We must find a resource that will resolve the cut mentality and look toward a growth mentality.”

She believes that resource is the region’s future leaders, led by the wisdom of current leaders.

“Leaders of today must work with leaders of tomorrow, so this must include business, government, students and our institutions.”

The Chamber CEO stated that to help account for budget cuts, a new task force led by the Alberta Chambers of Commerce and the Council of Post-Secondary Presidents of Alberta will work to “focus on strengthening the alignment of post-secondary programming with opportunities for business growth and expanding work-integrated learning opportunities for post-secondary students.”

Representatives from local businesses, educational institutions, industry and funding leaders will be a part of the task force.

by Justin Goulet

Exploring the impact of post-secondary cuts on Lethbridge’s economy

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