With many Ontario universities facing financial pressures and exercising restraint in spending, the provincial budget being released March 26 will be among the most closely watched in years.
Universities have been forced to reduce spending in the face of a worldwide economic crisis that has affected traditional sources of revenue.
The University of Western Ontario was also just entering a planned easing up of long-term spending plans. As a result, the market decline has forced a curtailment of spending at a rate faster than originally planned.
The federal budget released in January earmarked infrastructure funding, but left questions about the operating costs of research and support for the national research granting councils.
Western is forecasting a $41 million loss in operating revenues between 2008-09 and 2010-11. Budget units have been asked to cut spending an average of 5.5 per cent, new construction has been paused, hiring has been sharply reduced and a voluntary early retirement package has been offered – all among efforts to achieve targets without resorting to layoffs.
Recently, the Ontario government committed to more funding for new graduate student spaces, as part of a promise to stimulate growth of a ‘knowledge’ workforce. Western will receive support for 274 new master’s and 230 new PhD spaces. Graduate education expansion is a key plank in Western’s planning for the future.
Observers will be keenly watching Ontario’s response to a commitment in the federal government to provide $2 billion for Canadian university and college infrastructure. Most major projects are cost-shared.
At Western, a major renovation of the Physics and Astronomy building was put on hold this year to help balance the budget, and several building projects in various stages of planning, but not yet being built, were paused.
Few budget watchers expect a provincial government facing a major drop in tax revenues to be in a position to offer generous operating increases for the post-secondary sector.
Ontario Finance Minister Dwight Duncan is to deliver the 2009 Ontario budget at about 4 p.m. on March 26.