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College facing $3.57 million deficit

The College of New Caledonia's board of governors approved a deficit budget for 2021-22.
College of New Caledonia WEB

The College of New Caledonia's board of governors approved a deficit budget for 2021-22.

Under provincial legislation, post-secondary institutions are normally required to pass balanced budgets each year. However, the provincial government gave special permission for colleges and universities to run deficits during the upcoming year – as long as those deficits are covered by accumulated surplus funds from previous years.

CNC president and CEO Dr. Dennis Johnson said the college has sufficient accumulated surpluses to cover the $3.57 million projected deficit for 2021-22.

“While much uncertainty remains around the impacts of the COVID-19 pandemic on the college, this budget is prudent and responsive to the times,” he said in a press release. “The 2021/22 budget will maintain student services and support student success as we work to transition to increased activity on our campuses and help us to strengthen vital college systems as we prepare for students’ needs into the future."

The college's budget projects $77.22 million in revenue and $80.79 million in expenses, resulting in a 4.4 per cent shortfall.

Despite approving a two per cent hike in tuition fees for domestic and international students, the college is projecting a 13.52 per cent drop in tuition revenue and a nearly six per cent drop in provincial grants.

"Budgeted amounts also recognize changes in enrolment patterns which includes an anticipated decrease in new international student intakes, a downward trend in domestic student enrolments in a number of program areas, and changes in course or program offerings," the college budget documents say. "An upward trend in the School of Health Sciences is reflective of increased enrolment in several programs."

While the college is projecting an 18.61 per cent increase in tuition revenue from its health sciences programs, it's anticipating decreases in all other areas of study – ranging from a 6.81 decrease in international education to a 176.88 per cent drop in English as a second language instruction.

“We're taking a conservative approach with our budget projections,” CNC vice president Tara Szerencsi said in a press release. “Last year, CNC mitigated a potential deficit through savings and receiving more tuition revenue than expected. We will continue to review our budget and work to ensure that we are allocating funds in the most effective manner for student success and to achieve the college’s strategic goals.” 

A spokesperson for the CNC Students' Union said the deficit isn't unexpected, given the pandemic.

"While the $3.57 million deficit is a large amount, this isn’t something that CNC is facing alone. Many post-secondary institutions across BC are facing deficits due to the circumstances of last year, whether it being a much lower enrolment rate or the cost of transitioning to online delivery methods," the spokesperson said. "We have full faith that the college would be able to cover this deficit with the surplus from previous years and make up for it in the future with a potential return to campus in the fall.”

However, the two per cent tuition increase for students was an unwelcome move, the spokesperson said.

"We never approve of tuition increases for our students. The growing tuition rate has always been a barrier to entry for many who haven’t been able to step into post-secondary due to financial limitations," the spokesperson said. "We hope that next year that there will not be a tuition increase, and we will actively advocate for that.”

The college board also re-elected chairperson Gil Malfair and vice-chairperson Regina Toth by acclimation, on Friday.