N.B. universities defend their value amid ongoing discussions about possible cuts

The south gate into the University of New Brunswick campus is seen in Fredericton on Friday Feb. 5, 2021. (THE CANADIAN PRESS/Stephen MacGillivray)

New Brunswick universities are in discussions with the Susan Holt government about what impacts the province’s financial situation might have on their operating grants.

Each of the province’s four public universities told CTV News Atlantic they are actively participating in the discussions, and no decisions or directives have been made yet.

But that hasn’t stopped concern from growing on campus.

In a letter to all staff and faculty at St. Thomas University, President and Vice-Chancellor Dr. M. Nauman Farooqi said Premier Susan Holt has directed all departments – including the Department of Post-Secondary Education, Training, and Labour – to find savings of 10-15 per cent in their upcoming budgets. Farooq said that “will likely have an impact on our operating grant.”

“The discussions have been frank, and each institution has had a voice at the table,” Farooqi wrote. “While mindful of the fiscal situation faced by the government, our goals are to ensure that the government understands the ramifications of any rushed decisions on the future of post-secondary education, and that any changes in the medium or long-term be meaningfully consultative driven by an articulated vision for the sector.”

Dr. Paul J. Mazerolle, president of the University of New Brunswick, said in a statement to CTV News Atlantic that they’re working to ensure the province knows the “importance of public investment in these vital institutions at a time of financial uncertainty.”

On Friday, the minister of post-secondary education, training and labour said the province hasn’t handed universities a percentage or number they need to reach in reductions.

But Jean-Claude D’Amours said they do need to find ways to operate differently.

“There is some concern from the institutions because of the discussion that we are having right now … there’s many things that was discussed. You know, property tax as an example,” he said. “The best people right now to help us finding solutions are the institutions themselves.”

All four universities told CTV News Atlantic they are trying to reiterate their value during these discussions.

The Université de Moncton said it’s premature to comment on proposals or scenarios that haven’t been confirmed yet, but it will defend its three campuses and the “vitality of French-language education in New Brunswick.”

And a spokesperson for Mount Allison said the university contributes more than $190 million annually in economic impact to the province.

The executive director of the Association of Atlantic Universities said he’s disappointed with how these discussions have occurred.

“To learn of a very drastic budget cut three to four weeks before the provincial budget is tabled really undermines the institution’s careful stewardship of public funding in terms of financial planning and budgeting,” said Peter Halpin.

He said the four publicly-funded universities in New Brunswick have an overall economic impact of nearly $330 million annually.

“The university sector is among the top six export revenue generating sectors in New Brunswick, behind aquaculture,” he said. “And then if you look at the tax revenue generated by universities, nearly $50 million annually is generated in provincial tax by the four publicly-funded universities. So, to say they have a significant impact on the economy of New Brunswick is an understatement.”

A public consultation period regarding the province’s financial situation ended Friday. The finance department is currently going through all of the pre-budget surveys and submissions that were sent in by New Brunswickers.

The budget will be tabled March 17.

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