Athabasca University will be looking at different ways to save money and cut back on costs as the institution heads into the second half of its financial year with a projected $1.5 million shortfall.
Although too early to say, the success of those efforts will determine whether AU will need to make further cuts, which could include staffing cuts, moving into the next financial year.
Based on the year, which began April 1, 2011, AU is looking at mitigation strategies to get back into the black by March 31 of 2012, explained vice president of finance Estelle Lo.
The projected shortfall, she explained, is mainly due to two things: less return on investments given the poor financial climate and an unbudgeted two per cent increase in wages after a collective bargaining agreement was signed with the Athabasca University Faculty Association.
She said that moving forward with the rest of the financial year the school will be exploring ways to cut back, emphasizing that lay-offs are not being entertained for making up the $1.5 million.
“The university would not lay off people without looking at other mitigation strategies first,” she said.
Those measures include: increasing resource fees for students, delaying non-essential projects, and reducing the janitorial budget, non-essential travel and discretionary expenses.
In December, the school is eliminating the shuttle service, which runs daily between Edmonton, St. Albert and Athabasca. Instead they will provide vehicles so groups of people can car pool, which falls in line with the university’s green agenda, she said.
She explained that the shortfall has been communicated to staff and they have been included in discussions on how to bridge the gap.
“They have provided us with really good input,” she said.
Faculty positions currently vacant will remain unfilled, which will save the university $2.8 million annually.
Current staff will be offered options for using up their accumulated paid vacation days, as well as unpaid furlough days. Both programs will be strictly voluntary though, she said.
They will also be offered an option to trade vacation days for charitable donations, which was an idea submitted by staff.
The school’s budget committee has recently moved into the planning process for next year’s budget, which begins April 1, 2012.
She said it is too early to say what that budget will include, but, again, the focus would be on non-staff related measures.
“I wouldn’t predict anything, we just want to see how it goes first,” she said. “We will for sure be very closely monitoring the financial situation between now and March.”
She said that the mitigation strategies will go a long way in making up the $1.5 million shortfall, adding that it was “very likely” the vacant staff positions would remain unfilled. AU will also continue to seek funding from the provincial and federal governments.
She emphasized that staff will continue to be involved in the process.
“If staff help it will make it easier for us,” she said. “It’s everyone’s budget.”
