December 15, 2006

UNBC is implementing a new budget process to better position theUniversity for the future. This multi-year budget planning process willclearly align spending with revenues as well as with the vision of howUNBC can grow and improve. The process is starting now in anticipationof having a 2007-08 budget ready for approval by the Board of Governorsat the end of March.

“For many years, individual departments and degree programs have had tomake annual cuts in their operations to balance the university budget,”says UNBC President Don Cozzetto. “These units have made all of thecuts they can and no longer have the capacity to absorb annual cutswhile still providing quality programs and services. The new,multi-year approach will involve the whole university community and befully implemented over the next three years.”

The University’s budget forecasts have determined that increasingexpenses relative to anticipated revenues will lead to larger annualshortfalls. In 2007-08, the shortfall is expected to be about $2million.

“To date, university budgeting has focused on growth. The new focus ison sustainability,” says President Cozzetto. “We’re taking acomprehensive approach to our budgeting and involving our Board and theprovincial government. We’re identifying new and expanded sources ofrevenue and aiming to make strategic cuts that will keep employeereductions to a minimum.”

The process is just starting. The Board of Governors will discuss thebudget framework at the end of January, in anticipation of the proposedoperating budget being submitted to the Board at the end of March forfinal approval.

The University’s budget challenges are nothing new and result from acombination of factors: its small size and northern location, the costof campus expansion, rising construction costs, the financial impact ofbeing “research-intensive,” high rates of inflation, increased numbersof faculty and staff, and generally flat student enrolment growth overthe past five years.

Contact:
Rob van Adrichem, Director of Media and Public Relations, UNBC – 250.960.5622