OLDS — Olds College will “continue to look at revenue-generating opportunities” to cope with cuts laid out in the provincial budget, president Stuart Cullum says.
The budget, presented Feb. 25 by Finance Minister Travis Toews, calls for a 6.2 per cent in operational support to Alberta’s system of post-secondary institutions.
In an email, Cullum said that cut comes on top of a 10 per cent slash to the system over the past two years.
He said that means Olds College’s operating and program support base grant will fall by 3.8 per cent or $1,073,264.
In 2021-22, schools will be required to fund 49 per cent of their operating expenses, up from 43 per cent in 2018-19. That figure rises to 52 per cent in 2022-23.
On the other hand, Cullum noted the college got some good news.
A grant it receives to support maintenance, repairs and upgrades of building systems and facilities, has been increased by 32.8 per cent or $748,354.
In the upcoming year, the province will provide 5.4 per cent less funding for post-secondary operations and they will be expected to foot 2.3 per cent more of that cost.
Cullum said Olds College has a plan to address that problem.
“Olds College is establishing a new operational framework that reduces our reliance on Alberta Base Grant funding while maintaining our objective of achieving our Growing 2025 Strategic Plan,” he wrote.
The government said post-secondary institutions will have to tap "outside" sources of revenue.
That's nothing new for Olds College. It has been soliciting money from various donors and doing deals with partners for years. Cullum said they’ll continue doing that.
“We will continue to look at revenue-generating opportunities,” he wrote.
No tuition increases were announced in the budget beyond a seven per cent cap to increases until 2022-23 which was announced previously. But in 2023-24, a 4.4 per cent increase in tuition revenue is expected.
Cullum was asked if there’s anything the college can do to respond to that.
“Olds College reviews its tuition rates each year and will continue to adjust within the guidelines provided by the government of Alberta," he wrote.
The 2021-22 academic year marks the beginning of performance-based funding at Alberta post-secondary schools, announced by the provincial government earlier. That move was delayed as a result of the COVID-19 pandemic.
Under that plan, targets will be determined for each post-secondary institution following consultation with students, teachers and administration.
Those factors could include graduation and completion rates, employment obtained after graduation, enrolment, the quality of teaching and student satisfaction.
Post-secondary institutions that achieve all of their targets will receive full funding. Those that don’t will have their funding on a prorated basis according to the percentage of their targets that they meet.
Cullum said the province will work with the Advanced Education Ministry to “understand the metrics that will be used for performance-based funding going forward.”
