Prince George, B.C. - The College of New Caledonia is facing a $1.1 million dollar budget  shortfall for the '08/'09 fiscal year.

The College expects to  have  revenues of $41.1 million, but expenditures of $42.2 million.

The College is blaming the shortfall on  "unavoidable cost increases, including employee benefits (health care, pensions, etc.), sick leave and maternity leave costs, changes to program duration and curriculum required by accrediting agencies, facility and equipment maintenance costs, and energy costs (hydro, gas, etc.).

According to CNC President John Bowman , CNC is not alone, as many of the other colleges in B.C. are experiencing similar budgetary challenges.

The CNC Board of Governors and President have been actively engaged in regional and provincial advocacy activities seeking increased funding for the College. Members of the provincial government and senior Ministry of Advanced Education officials have been kept informed regarding the college’s budgetary issues, and formal requests for additional funding have been submitted. As of February 1, however, no commitments for additional provincial grant funding that could be used to balance the 2008/09 operating budget have been communicated to the College.

During the past year (2007/08), the provincial government has provided CNC with additional targeted funding for trades training ($1.2 million) and the new medical laboratory technology program ($1.1 million), as well as additional funding ($750,000) to pay the costs of negotiated salary increases for its approximately 550 employees.

Bowman says there may be  job losses and  program cuts.  That would the third consecutive year of cuts at the College