Sault College budgets for $2.25 million drop in revenue

Sault College today approved a 2003-04 budget that includes a $2.25 million revenue drop from last year.

Estimated revenues are $29.3 million, compared to $31.5 million for 2002-03.

Expenditures are expected to drop by more than $297,000. Some layoffs are in the works, but exact numbers aren't being released because employee groups representing academic, support and administrative staff are involved in employment stability reviews which impose confidentiality requirements.

The following is the full text of a news release issued by the College:

***************************************************************** Operating, Capital Budgets Approved

The Sault College board of governors has approved operating and capital expenditure budgets for the 2003-04 fiscal year beginning April 1.

The approvals were provided at the board’s monthly meeting on Thursday, March 20.

Summary highlights of the 2003-04 operating budget are as follows:

- Estimated revenues of $29,303,671 compare with estimated revenues of $31,548,685 for 2002-03.

- Estimated expenditures of $31,696,898 compare with estimated expenditures of $31,994,269 for 2002-03.

- One-time transition costs related to complement reductions and achieving operational efficiencies are estimated at $2,486,281.

- These transition costs result in an in-year operating deficit estimated at $2,393,227. This is slightly lower than the estimated transition costs total because of a $93,054 difference between estimated revenues and other expenditures.

- After commitments related to transition costs have been fully met, the college will be operating with a balanced in-year budget.

- However, due to operating deficits incurred during recent years, the college will continue to have an accumulated deficit (debt).

- The accumulated deficit (debt) as of March 31, 2004, is forecast to be $5,149,000.

"This budget will begin moving Sault College to an in-year balanced budget position," said President Dr. Timothy Meyer.

"Transition costs result as the college adjusts operations to live within our financial means. With more than 70 per cent of our available operating funds going towards salaries and benefits, costs in these areas must be decreased.

"While strengthening our core commitments to learning and classroom instruction, the moves we are making now will lead to the financial foundation necessary to have a viable future.

"To achieve that base, we must begin reducing operating costs. Not doing so would jeopardize the college’s ability to compete in an environment that is changing significantly with the introduction of a new charter for Ontario’s community colleges."

Dr. Meyer said many factors would change the actual revenue and expenditure levels during the course of the 2003-04 fiscal year.

"We do not know what the operating grant for Ontario colleges will be when the provincial government tables its budget on March 27.

"Nor do we know what expenditure impacts will result when new collective agreements with academic and support staff are in place. The current contracts expire on August 31, 2003."

Operational and activity details related to the approved budget cannot be released at this time.

Employment stability committees for the college’s three employee groups – academic employees, support staff, and administrative staff – are conducting review processes. The review periods are bound by confidentiality requirements for all parties.

"After the senior management team has assessed input from the three committees and made any adjustments deemed beneficial, we will provide operational details for 2003-04," said Dr. Meyer.

Governors also approved a 2003-04 capital budget. Estimated expenditures of $989,800 are offset by estimated revenues of $989,800.

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