'We're downsizing': MUN board of regents approves penny-pinching budget

Memorial University's budget of attrition and cost-cutting has been approved by its board of regents — the group that makes financial decisions for the school.

University president Gary Kachanoski called it a budget of no surprises, one that was just aimed at getting through the second year of a three-year cost-cutting plan.

We need to decide, and Newfoundland is going to have to decide, what kind of university does it want?- Gary Kachanoski

The university will eliminate $8.9 million from its bottom line — $3 million will come by not replacing staff who retire or leave.

"We're downsizing," Kachanoski said after Thursday's vote. "We're decreasing people, programs and what goes on in the programs."

He estimated there are about 90 fewer people working at Memorial University today than there were two years ago. The struggle, he said, is how to distribute the impact of shrinking revenue and cut costs while maintaining national standards.

"We need to decide, and Newfoundland is going to have to decide, what kind of university does it want? And is it going to have the infrastructure that it needs to run a 21st century, national-class university with a comprehensive set of programs, or not."

Students' union not happy

Bailey Howard, communications director for the students' union, MUNSU, said her group is hearing from students worried about fee hikes and tuition increases.

While there were no new fees introduced in this budget, previously announced fees will take effect in September.

New international and out-of-province Canadian students will pay 30 per cent more for tuition in September than students already enrolled in classes this year.

Last year's board of regents meeting was met with anger and outrage from a small group of students who stormed the room and interrupted the meeting.

The student presence was more subdued this year, as students had a barbeque in the parking lot and displayed signs saying such things as "We heart the freeze."

Howard's message was directed more toward the provincial government, which has cut $22 million from the university's budget in the past two years. 

"The government really does need to be investing in its students," she said. 

"We're always talking about the population declining in the province and that we need people in this province and the best way to do that is by having an accessible education for students to come here."

Searching for other funding

While 84 per cent of its money comes from the province, Kachanoski said the university has had success finding other sources of funding.

The federal government pitched in $100 million for the new core science building, while the university leased waterfront space for a new marine base in Holyrood.

The former Battery Hotel is being turned into a gradate student residence, paid for in part by endowment donations, residence fees, and more than $8 million from the federal government.

"We've been trying to lever all the things we have, recognizing the province is in a tough fiscal situation and we need to do our part in that," Kachanoski said.

Meanwhile a massive infrastructure problem is pushed down the road, Kachanoski said, as problems with aging buildings are added to a long list of deferred maintenance.

There's also a looming pension issue, which will cost the university an additional $8 million per year for up to 30 years.

"There is simply no way we could absorb that without significant restructuring," Kachanoski said.