The fairly good financial position enjoyed by College of New Caledonia in this 2009-2010 school year has been short lived as officials now face provincial cuts totalling about $1.1 million for the 2010-2011 fiscal year.
On Friday board members learned the college's annual capital allowance from the advanced education ministry will be slashed by about $604,000 to about $375,000 for the coming fiscal year beginning April 1. Officials also know that the operating grant will be about $500,000 less than that allocated this past year due to a one-time-basis funding for 96 trades and 16 health students that will not be renewed.
CNC president John Bowman told the board although it's too early to say what college programs or services may be affected "we are not anticipating major reductions across the college."
"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."
Administration expects to receive $28.5 million in operating grants from the ministry -- down about $600,000 from the 2009-2010 grants which equals the loss of funding for 12 full-time equivalent students in the 2010-2011 school year.
The major cut in the annual capital allowance simply means that "many needed improvements, repairs and upgrades will have to be postponed this year and next," Bowman said.
In March 2009, CNC ended its fiscal with a surplus of about $1 million that was put into the colleges "rainy day" fund that, at that time, had reached $1.8 million. Bowman said at the time he'd like to see that fund reach at least $3 million to provide stability and a cushion for the projected tough years ahead.
It seems the tough years are here and "the fiscal challenges will be far greater in 2011-2012 and 2012-2013 if funding continues along this same path," Bowman said.
"Clearly, we will be facing unprecedented and very serious challenges over the coming three years as we attempt to preserve and enhance student access to programs and services while maintaining high-quality physical environments for learning and working.
"We will need to review service and administration plans and needs for the next three years with a view to achieve significant cost reductions for 2011-2012 and beyond."
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