Cambrian College president Sylvia Barnard announced April 14 that the institution is making a number of cuts and changes to the way it operates in order to deal with a $7.5 million operating budget shortfall, which represents 10 per cent of its operating budget.
These changes came about after the college conducted an extensive review of its programs, beginning in the fall of 2009. The college will be presenting its budget in May.
The college's board of governors has approved a document called Achieving Long-Term Sustainable Financial Health, which “provides a decision-making model, and a framework, along with principles around how the college would move forward into better sustainability for our finances,” Barnard said.
The college will be closing its day care centre as of June 30, putting five child care workers and one manager out of a job. The day care centre, which has 51 spaces, about 40 of which are occupied by the children of students, is projected to run a $250,000 deficit in 2010-11, Barnard said.
“With...expansions on campus now completed, we feel that we can afford to move to a more streamlined and cost-effective maintenance model, that doesn't require as many workers.”
Sylvia Barnard,
Cambrian College president
Maintenance operations at the college are also being restructured, resulting in six maintenance workers, and two managers losing their jobs.
Barnard said the college compared its maintenance staff with that of other colleges in the province, and found that its numbers were substantially higher.
“With...expansions on campus now completed, we feel that we can afford to move to a more streamlined and cost-effective maintenance model, that doesn't require as many workers.”
The college will save $250,000 a year from closing down its day care centre, and $950,000 a year from reducing its maintenance workforce.
Beyond these measures, Cambrian has also introduced the President's Committee of Financial Health, which is made up of college employees, and brings ideas to Barnard about how the college can operate more efficiently and reduce duplication.
The college is also offering an early retirement incentive program, increasing its parking rates, established an ancillary business co-operative (where college businesses outside of the college's primary operations co-operate to learn how to attract more business), and hiring a private management company to operate the college's residences.
Barnard said she hopes that putting a management company in charge of the residences will result in these facilities being used when students aren't living there. Both this company and the college would get a cut of these funds, she said.
She said she could not reveal how much this contract is worth because they are currently putting together a request for proposals.
Beyond these measures, Barnard said students can expect to see about a four per cent increase in tuition. Six programs with low enrolment have already been suspended by the college, she said.
The $7.5 million budget shortfall was caused by a number of factors, Barnard said. In 2008, the Ministry of Training, Colleges and Universities changed the funding model for colleges, which has resulted in a decrease in the base funding for Cambrian College.
As well, the college has to absorb about $4 million per year in additional costs due to inflation, collective agreement requirements and increased cost for services.
The downturn in the economy has resulted in a loss of revenue from the college's corporate and contract training businesses. Lastly, Cambrian is replacing its Student Information System, which is a multi-year, multi-million dollar project.
