Concordia faces challenges in addressing permanent budget cuts
Concordia is currently developing its 2014-15 budget and forecasts for 2015-16 and 2016-17, taking into account permanent cuts to its operating grant.
When cuts were first announced in December 2013 for all universities, it was understood these would be for a two-year period only. The university has received confirmation that cuts to its base funding are now permanent.
“We are living in a constrained fiscal environment,” said Concordia President Alan Shepard. He pointed to the cuts in 2012-13 and 2013-14, which totalled $26.4 million ($13.2 million for each fiscal year).
As a result, the academic sector reduced costs by 2.5 per cent and all other sectors reduced spending by 6.6 per cent, beginning in 2013-14. The university also incurred a deficit of $6.4 million in 2012-13 but was permitted by the government to spread the repayment of this deficit over several years.
Reinvestments will only provide some relief
The Government of Quebec’s budget, released February 20, confirmed reinvestments in both post-secondary education and research, as outlined in the objectives of the Politique nationale de la recherche et de l’innovation (PNRI).
The reinvestments include an increase in base funding. However, the university will have to petition for the bulk of the funds. While these reinvestments may provide some relief in 2014-15, they will not cover the permanents cuts nor the anticipated cost increases.
“We’re working diligently to meet the government’s request for proposals that could earn back the maximum amount of funds for the university,” Shepard said.
The university is finalizing a one-year partnership agreement with the government related to these reinvestments, which could mean up to $11.9 million for Concordia. Funding allocation categories, assigned by the government, include teaching, research, students with disabilities and special needs, and financial debt repayment.
Budget conversations coming this spring
Similar to last year, CFO Patrick Kelley and Provost Benoit-Antoine Bacon will undertake a tour of the Faculty Councils and host a series of public budget conversations this spring before seeking Board approval of the 2014-15 budget this spring.
Stay tuned for the schedule of budget conversations.