By Jason Warick, The StarPhoenix
The University of Saskatchewan’s payroll has been trimmed by $2.4 million in recent weeks after dozens of jobs were eliminated, but a top official is warning of much deeper cuts in the near future.
The U of S faces an annual $44.5 million operating shortfall by 2016 unless changes are made.
“Every administrative and academic unit on campus will participate in workforce planning and most will have to reduce their workforce this year,” U of S associate vice-president of human resources Barb Daigle wrote in an email to staff and students last week.
“The university requires immediate savings as well as long-term savings to meet the current and projected budget challenges.”
In the email, Daigle outlined details of the 50 jobs that have been lost to this point.
Library staff have been the hardest hit so far, with 12 positions eliminated.
There were seven jobs lost in consumer services, six in student and enrolment services, five in the Edwards School of Business, three in the college of law, and one or two in a number of other areas.
Daigle said university leadership has had to make difficult decisions, and she encouraged anyone with concerns to contact their manager or her office.
Students and staff interviewed say they’re worried, and some blame university administrators for the current situation.
Others point to the provincial government. Still others say it’s a combination of factors that could not have been predicted.
“It’s created a toxic environment here, the worst I’ve seen,” said long-time anthropology Prof. Sandy Ervin.
Music education student Sarah Suchan and music performance student Gerard Weber said they are stressed about the quality of their degree.
“What if our program no longer exists? What’s coming?” Weber said. “We’re really worried.”
Agriculture student Kendall Krepps agreed.
“I’m not sure what’s going on. It was pretty shocking,” Krepps said. “What are we going to do?”
Provincial government grants provide the bulk of operating funds for the U of S and most Canadian universities. The U of S had received record annual increases in recent years.
The provincial government recently informed the U of S increases would now be in range of two per cent. It’s still more than most Canadian universities are getting, but less than what U of S officials were expecting.
And that resulting $44.5 million annual shortfall refers to the U of S operating budget alone. There’s also the capital budget.
Capital debt is expected to double this year to $199.2 million, an amount that “will far exceed debt compared to peer universities,” says the U of S 2011-12 annual report.
Most of that increase is due to the provincial government’s new position on financing the ambitious Health Sciences complex.
In 2011, Premier Brad Wall said the government was committed to funding construction of the $300-million building.
In 2012, however, university officials were informed the government would instead be contributing roughly $200 million. The U of S was told it would have to pay the remaining $95 million itself.
There is also no money in place to operate the facility, although both sides say they’re still in discussions. Campus officials are now considering a scaled-back project.
David Boehm, assistant deputy minister for the Ministry of Advanced Education, said the U of S should rightly pay a portion of the health sciences construction cost and will also need to take more responsibility for future projects.
Boehm noted the U of S has received record levels of funding to operate its programs in recent years. He and others said other Canadian universities are receiving much smaller increases, and in some cases no increases.
Boehm said all post-secondary institutions, not just the U of S, are important to the provincial government. He noted enrolment in technical colleges has increased by 30 per cent in recent years, far more than at universities. He said students are “voting with their feet.”
Advanced Education Minister Don Morgan told reporters last month the government remains committed to the health sciences project, but stopped short of promising any new funds.
Simon Enoch of the Canadian Centre for Policy Alternatives said the government should have enough money to fund projects like this.
“We’re supposedly in a boom. They keep saying it’s the new Saskatchewan and we’re supposed to be driving innovation,” Enoch said. “I think they’d much rather have an institution that just churns out employees than educated citizens.”
U of S faculty association president Doug Chivers said the government needs to acknowledge the university is the province’s “economic engine” and fund it accordingly.
There are other dark financial clouds. Deferred maintenance costs have reached $507 million. The U of S donor endowment fund, which generates interest to finance programs, sits at $220.7 million, roughly half of the per-student amount for similar Canadian universities. The U of S also faces a pension fund shortfall of more than $110 million.
“It’s only going to get worse. The math just isn’t sustainable,” said Bill Tufts, a Hamilton-based expert on public-sector finances.
The pension issue has been known for several years, said former U of S vice-president of finances and resources Richard Florizone. He noted the U of S was honoured with the national CAUBO Quality and Productivity award for a study identifying the problem. However, no money was set aside to deal with it until this year. U of S officials have budgeted $10 million, but they also acknowledge that much more could be required.
“Could we have foreseen all of this? It’s difficult to say,” Florizone said.
In general terms, Florizone said he’s proud of the work he and MacKinnon did. MacKinnon declined an interview request.
Colin Craig of the Canadian Taxpayers Federation said it “sounds like they weren’t taking things seriously. They should have tried to win a national award for doing something about it.”
Tufts said ignoring the pension deficit for so long was irresponsible. He said “revolutionary” changes are needed, but doesn’t think that’s going to happen.
“Everyone’s got their hand in the honey pot at the U of S and the taxpayers are stuck with the bill,” Tufts said. “More government funding isn’t going to solve this.”
U of S provost Brett Fairbairn said it’s best to pay off the pension fund by $10 million per year, rather than setting aside a higher amount. Setting aside more could result in more devastating cutbacks, “and it wouldn’t be prudent to do that,” Fairbairn said.
Fairbairn said university officials are adamant they will not increase tuition to balance the books.
Every job, program and college is being reviewed under the recently announced TransformUS program. TransformUS is based on a system developed by Colorado academic Robert Dickeson. It begins with several assumptions, which the U of S has posted on its website.
Dickeson believes academic programs at universities “have been permitted to grow and … calcify on the institutional body without critical regard to their institutional worth.” He said universities are unrealistically trying to be comprehensive, and should focus on what they do best.
TransformUS will rank programs over the course of the year and shift resources from weakest to strongest. The cuts will be targeted. Cutting every department by the same amount will not achieve the transformation they seek, say officials.
“We are looking at every possible efficiency,” Fairbairn said.
KEY NUMBERS
. In 2011-12, total revenue was $860.8 million. The provincial government grant ($420 million), tuition and student fees ($111.3 million), sales of services and products ($94.6 million), and government of Canada contracts ($86.6) were the biggest contributors.
. For the same period, total expenses were $901.5 million. Salaries ($589 million) make up the majority of costs. Others included operational supplies and expenses ($118.6 million) and goods sold, equipment maintenance and rentals ($72 million). Source: U of S annual report 2011-12