Alberta fiscal update raises questions about post-secondary funding

The Alberta government is forecasting a $933 million year-end surplus — a $154 million drop from the $1.1 billion that was forecasted earlier this year — which could change the fiscal environment for post-secondary institutions.

The drop in projected surplus is due to declining oil prices, as oil went from US$100.08 a barrel to US$75 a barrel, a decrease in 8 per cent.

Alberta Innovation and Advanced Education Public Affairs Officer Paul Oss said in an e-mail that the government is currently in the planning process for next year’s budget, and no decisions regarding post-secondary funding have been made. He added that Alberta’s economy is subject to market swings and changes with the global economy.

“We are facing a very challenging fiscal reality with the price of oil being where it is,” Oss said. “I can say that we remain committed to ensuring Alberta’s post-secondary system delivers a high quality education that gives graduates the knowledge and skills they need to be successful and competitive.”

Students’ Union Vice-President (External) Navneet Khinda recalled Premier Jim Prentice pledged to restore the remaining funds cut from Alberta’s post-secondary sector in the 2013 budget if he was elected as Leader of the Progressive Conservatives and Premier of Alberta.

She said she’s worried that the government won’t be able to keep that promise with oil prices in flux.

“It seems like the promise to restore funding from the 2013 cuts won’t actually have follow through,” Khinda said. “That’s really disappointing to us.”

In 2013, post-secondary sector faced $147 million in budget cuts, which forced institutions across the province to cut programs and staff.

Post-secondary institutions are also waiting to hear back from the government on the market modifier — or tuition increase — proposals.

Khinda said the SU and the Council of Alberta University Students (CAUS) will continue to lobby and put pressure on the ministry to get politicians on the record regarding the upcoming provincial budget, which will be announced in March, 2015.

“We keep seeing this rhetoric and we keep seeing these broken promises,” Khinda said.