Prince George, B.C. – The College of New Caledonia is facing a projected budget shortfall of approximately $1.8 million next year.

 

According to a budget development update report  delivered to the college’s Board of Governors today, costs continue to climb at the college, while overall its two major sources of income (government funding and total student tuition revenues) are not expected to increase in 2012/13.

 

“While it is still very early in the process, the current draft 2012/13 budget would result in an operating fund deficit of about $1.8 million — if nothing were changed,” Penny Fahlman told the Board. “Like every year, the college is facing a variety of unavoidable higher costs and spending pressures including: employee salary step increments; rising utility costs; new and higher software licensing and maintenance fees; and more.”

 

The reports presented at the Board meeting also indicated the college administration plans on asking the board to approve up to a 2% increase in tuition for the 2012/13 academic year. The tuition fee decision would be made at the board’s next meeting.  In 2011/12 the college did not implement an increase to student tuition fees.

 

Colleges are required by provincial legislation to plan for a balanced budget every year, which means changes to the budget plan will be necessary in order to deal with the projected shortfall.

 

“We intend to make available a limited number of one-time early retirement incentives and voluntary severance packages to full-time regular employees, who will not be replaced in the following year by a new regular or full-time employee,” Fahlman said. “A variety of other strategies to reduce expenditures will also need to be considered.”

 

If layoff notices must be issued, that decision would be made during the in-camera portion of the board’s next meeting. The layoff notices would then be delivered to effected employees by March 31, 2012, as required in the college’s collective agreement with the Faculty Association.

 

“There are too many factors at this point to know if layoffs will be required. Obviously, we would like to avoid those if possible,” CNC President John Bowman said. “The college will be making every effort to limit any negative impacts on students, employees and our communities that may result from changes to the college’s financial capacity and plans for 2012/13.”