The University of Saskatchewan (U of S) will operate with a $16.7 million deficit for the 2017-2018 year after its board of governors approved its operating budget last week.
U of S President Peter Stoicheff told the group that approximately 75 senior administrators will see their salaries and benefits reduced in an effort to address the shortfall. He added that the institution will “spend its reserve funds far below the recommended level for public institutions.”
READ MORE: University of Saskatchewan managerial layoffs not tied to budget shortfall: officials
In March’s provincial budget the U of S saw its base operating grant cut by 5.6 per cent, which equates to $18 million. The government also directed the institution to take $20 million from the base grant and put it toward a funding shortfall in the college of medicine.
“We’re not expecting to make a significant dent in our deficit by lowering administrative salaries,” Stoicheff said in an interview Tuesday.
“But … we needed to look at absolutely everything across the university and you can’t say you’re going to look at everything and not look at senior administrative salaries.”
READ MORE: University of Saskatchewan offers 1,100 employees voluntary buyout packages
Stoicheff said the university is in an unsustainable situation, as its financial reserves have been reduced due to previous budget shortfalls. He added that all options are being considered in an attempt to find long term solutions.
“We will remain an excellent university, we will remain one of the top research intensive universities in this country, with a terrific student experience,” Stoicheff said.
“The challenge is to be strategic enough that you don’t disappoint anyone in that regard. Having said all of that, we will have to make changes.”
Comments