CNC needs to trim $1 million for coming budget
It hasn’t been like this every year at the College of New Caledonia, says president John Bowman.
“I remember several years ago,” he said, “there was one year when we weren’t forecasting a budget shortfall.”
At Friday’s board of governors meeting, vice-president of finance and administration Penny Fahlman reported the school is facing about a $1 million shortfall for the 2013-14 budget.
“Once again,” she said in her report, “the college is facing unavoidable higher costs due to the impact of inflation and increases in costs for building and equipment maintenance, software, utilities, and more.”
Bowman said that while costs were up, revenues were also down.
“Enrollment was down about six per cent, which resulted in a loss of tuition, That came in under budget by about $600,000.”
The school is also planning for the grant from the provincial government being reduced.
“We haven’t heard anything,” Bowman said, “but in the budget there was a reduction of $20 million across the province, which would be one per cent. For us, that would be about $300,000.”
The board was told administration plans to ask for a two per cent increase in tuition fees, the same as was put in for the 2012-13 school year. That move generated about $100,000 in revenue.
Last year, the initial report to the board showed a $2.3 million shortfall, which was balanced by the final budget at the end of April.
Bowman said there will be an preliminary list of options and recommendations made at the in-camera portion of the Feb. 22 board meeting.
“The board makes its preliminary decisions in-camera, then communicates these to the internal groups who may be affected by them.
“There will probably be public announcements made in March.”
At the board meeting Friday, Bowman said the options presented would include a combination of reduced expenditures, reallocations of unused budgets, and inclusion of deferred and other revenues in the budget, as well as a limited number of early retirement incentives and voluntary severance packages.