PROVINCIAL BUDGET IMPACT ON THE UNIVERSITY OF LETHBRIDGE (U of L)

February 11, 2010

The Provincial budget was announced on February 9, 2010. Senior Administration at the University have begun having conversations with Advanced Education & Technology (AET) officials to determine the specific implications the Provincial budget will have on the operating budget of the University of Lethbridge.
AET has changed the format of their budgeting for 2010-2011.

1. CONTINUING FUNDING

The base operating grant of the University will be combined with all other operating funding, including newly established academic program funding.
The new operating funding, now called the Campus Alberta Grant, will be $94.6 million.
This is a 2.6% reduction from the funding for 2009-2010.

2. PROJECTED COST INCREASES

The University must submit a balanced budget to the Province, for approval by the Minister of AET. With the decrease in the operating grant and the projected increases in expenditures for the upcoming fiscal year, the University is projecting that there is a gap of $9 million in the University's budget.

In addition to the 2.6% reduction and from Campus Alberta Grant the University must also fund:

- Projected operating expenditure increases, including increases in fixed costs, salaries and benefits, net of tuition fee increases ($4.3 million)

- New facilities operating expenses ($1 million)

- Program funding for already newly established academic programs previously approved by the Minister of AET ($1.2 million)

-------------

Operating Grant & Enrolment Planning Envelopes 2009-2010: $97.1 million

Campus Alberta Grant 2010-2011: $94.6 million

Reduction: -$2.5 million , or 2.6 per cent

Projected Cost Increases

Projected operating expenditure increases -- $4.3 million

Facilities operating expenses -- $1.0 million

Newly established academic programs -- $1.2 million

TOTAL: $9 million

3. ONE-TIME FUNDING

The University will receive $1.7 million from AET in one-time restricted funding to assist with the reduction in operating funding.

Additional information will be distributed as it becomes available. Check https://www.uleth.ca/planning/ for continued updates.

Dr. Bill Cade, President & Vice-Chancellor