The College of New Caledonia is going to have significant financial challenges to resolve, board members heard Friday as more than $1 million in provincial funding cuts are expected for the next year.
Advanced Education and Labour Market Development Minister Moira Stilwell stated in a letter to the college that its Annual Capital Allowance (ACA) will be reduced in 2010/11 to $374,697, which is $603,938 less than the amount provided in 2009/10 and $1.1 million less than the 2008/09 allocation. ACA funding is used for the costs associated with facilities maintenance, repair, replacement and upgrading of building systems, such as lighting and heating.
CNC's operating grant funding for 2010/11 will also be about $500,000 less than in 2009/10, due to the removal of funding for 96 Trades/Skills FTEs and 16 Health FTEs that have been provided on a "one-time basis" for the past three years.
"It's too early to give details on what college programs and services may be affected," said CNC President John Bowman. "However, we are not anticipating major cross college reductions. The budget planning is still in progress and we won't be able to finalize our plans until after March 2, when the provincial budget is released."
