MEMORANDUM
TO:
Peter MacKinnon, President
Brett Fairbairn, Provost and Vice-President Academic
FROM:
Jay Kalra, Chair, Planning and Priorities Committee of Council
DATE:
November 6, 2009
RE:
Operations Forecast 2010-2011
______________________________________________________________________________
On behalf of the planning and priorities committee, I am pleased to provide the committee’s
response to the university’s 2010-11 Operations Forecast submission to the province of
Saskatchewan.
As has been the practice for several years, as chair I was pleased to attend an initial discussion of
the university’s funding priorities in the fall with members of the university’s senior
administration and the Deputy Minister of Advanced Education, Employment and Labour
(AEEL), as well as other departmental officials from AEEL and Finance. Prior to the meeting,
the planning and priorities committee was presented with the key messages anticipated for the
operations forecast. Subsequently, the committee discussed the draft operations forecast
document in conjunction with the university’s projected operating budget at its meetings on
October 14 and 21, and November 4, 2009. In addition, the committee’s ad hoc finance
subcommittee met on two occasions to review and discuss the submission in depth.
The planning and priorities committee believes the university must continue to make strategic
choices guided by the principles associated with the planning process and the Second Integrated
Plan if we are to emerge stronger. However, our choices must be balanced against our financial
risks, significant among which are a decline in the provincial grant in the face of declining
commodity markets and a corresponding drop in provincial revenues, a decline in student
enrolment and associated tuition revenue, reduced investment income returns, and pending salary
and benefits negotiations with USFA and CUPE. Also, within the context of these and other
risks, the continued deferred maintenance of the university’s aging physical infrastructure
remains a serious and pressing issue.
As the university is committed to attaining a balanced budget, further decline of the university’s
revenue makes imperative the development of an effective framework for resource allocation
built upon sound principles related significantly to activity and outcomes. The committee
supports that any further budgetary reductions, if required, be targeted and considered across the
broad range of the university’s academic and administrative activities and in conjunction with
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the commitments of the Second Integrated Plan and to the vision enunciated in the Strategic
Directions statement. Additionally, in keeping with the principle of an engaged university, the
effect of budget adjustments on all units must be monitored carefully from an academic
perspective, but also in view of their impact upon the morale among students, faculty and staff
throughout the institution.
The planning and priorities committee continues to uphold the principle that the university’s
budget should not be balanced through tuition increases, notwithstanding the degree of exposure
the university faces on tuition revenue relative to the projected decline in undergraduate
enrolment. This is a potential area of serious financial risk as the ability to sustain our
programming depends upon student demand. However, the well being of students and their
academic growth is fundamental to the university’s decision-making processes. As well, the
student experience, which encompasses affordability and access to post-secondary education,
remains a vital consideration. Therefore, tuition should be set based upon sound principles,
which include comparability to similar programs, affordability and accessibility, and enabling
program quality. The committee urges that enrolment, as a critical aspect of the university’s
future, be considered from a variety of perspectives and strategies.
As the university continues to experience an unprecedented period of capital growth, capital
renewal and maintenance of the university’s buildings are critical budgetary considerations. The
planning and priorities committee agrees that the university’s deferred maintenance and capital
renewal needs must continue to be made known and emphasized to the ministry within the
document. Any new capital projects must be carefully considered, not only in the light of their
long-term operating costs, but also in the context of the university’s financial state and the
significant deferred maintenance needs of its existing infrastructure.
As the document outlines the university’s long-term financial strategies and aspirations, these
increasingly have been developed based upon a common vision of key areas for development
with the province. The university plays an integral role in wealth creation and Aboriginal
engagement, which have been highlighted as fundamental areas of government investment. The
planning and priorities committee encourages the university to continue to stress the importance
of the university in building the social and economic base of the province and serving as an
important component of the province’s economic engine.
In summary, the planning and priorities committee supports the 2010-11 Operations Forecast as
a sound projection in the face of continuing economic uncertainty and the prospect of declining
provincial revenue. The university’s request of the province is based upon realistic budgetary
assumptions which stress the importance of sustaining a balanced budget, while continuing to
outline the potential for strategic investment in areas of mutual importance.
______________________________
Jay Kalra, Chair
Planning and Priorities Committee of Council