On Oct 24, we informed the university community of preliminary budget planning parameters for 2018–19 and the two subsequent years.
We have received a number of questions in response to the post and write today to provide additional information about the three-year rolling budget planning process we are now putting into place and to clarify that the long-term targets in years two and three are provisional forecasts.
As you may appreciate, budgeting is based upon financial forecasting and core assumptions that are made at a point in time. These core assumptions reflect revenue and expenditure expectations over the next three years. Like all estimates, these are subject to change as better information becomes available. We can be more certain about projected assumptions and forecasts in year one than in years two and three.
As a result, at the Oct 18 meeting of Deans’ Council, the senior leadership team was able set a preliminary planning target of a 4% budget reduction for year one of a three-year rolling budget plan. One of our immediate goals is to eliminate a structural deficit in the operating budget of approximately $14 million. As noted yesterday, we are striving to do this with the assumption that there will be no increase to either the Campus Alberta grant or tuition and fees.
We would like to clarify that projected budget reductions of 2.5% in years two and three are provisional and have not yet been discussed in detail or set by the senior leadership team. These are preliminary budget forecasts that provide deans and unit leads with the best information that we have at this moment to help in their long-term planning. As factors and information evolve, we will update planning targets in close consultation with the deans and unit leads. We will keep the community informed as planning parameters change over time.
The University of Alberta is committed to strong fiscal planning. To learn more, please join us at the Campus ForumCampus Forum on November 9 at noon in Education North 2–115. This event will also be livestreamed.
Steven Dew, Provost and Vice-President (Academic)
Gitta Kulczycki, Vice-President (Finance and Administration)