Facing a $2.3 million budget shortfall, the College of New Caledonia approved a two per cent tuition increase Friday.
As a result, CNC students will be paying on average $5 more per course or $50 per year in tuition for full-time students. While that is expected to generate only $100,000 in additional funding, the college board unveiled a plan that should result in an additional $2 million in budget savings for the 2012-13 fiscal year.
"We would rather not have to increase tuition, but we are facing some pretty significant fiscal challenges," said CNC president John Bowman. "This is a small but significant piece in the puzzle to resolve a $2.3 million budget shortfall."
Bowman said CNC will try to avoid layoffs and will achieve further cost savings by offering some employees early retirement packages and voluntary severance options. Any notice of layoffs will be served by March 31, as specified in the collective agreement with the CNC Faculty Association.
Other cost savings will be achieved through reallocation of unused budget amounts, adding deferred revenues, not replacing some vacant full-time administrative, faculty and staff positions, and reducing expenditures for equipment. The college also plans to reduce the schedule frequency of some low-enrolment courses and will consolidate some class
sections.
"The list that was endorsed by the board [Friday] is about $2.1 million worth of projected savings, so that leaves a balance of about $200,000 we're still looking to address over the next couple months," said Bowman. "But we feel confident we'll be able to accomplish that through a number of smaller measures."
CNC attributes the seven-figure deficit to rising costs for such things as utilities and declining income from tuitions, with no increases in funding from the provincial government budget that was approved Thursday. Provincial legislation prevents B.C. colleges from
operating with deficits.
"The good news coming out of [Friday] is there won't be any cancellation or suspensions of existing programs or services next year," Bowman said. "So we've been able to develop a plan that will be able to maintain the comprehensive range of programs we offer."
