UPEI Board of Governors approve balanced budget for 2016–17
The University of Prince Edward Island’s Board of Governors approved a balanced operating budget for 2016–17. The budget, which is $111 million, includes a tuition increase of three per cent, keeping it among the lowest in the Maritimes, and sustains core programs and services as well as UPEI’s workforce.
“UPEI is very proud of the continuing success of our students, faculty, and researchers,” said President Alaa Abd-El-Aziz. “As a key economic driver for the Province of Prince Edward Island, we are making a positive impact on the Island, Atlantic Canada and around the world. Together, we are building outstanding experiential learning opportunities and encouraging students to develop to their full potential in both the classroom and the community.”
UPEI’s budget plan is based on revenue generated by two principal sources—the annual provincial operating grant and student tuition. As was announced during the spring sitting of the provincial legislature last month, the provincial government increased UPEI’s operating grant by one per cent for 2016-17. Revenues are used to cover core operating costs including wages, utilities, equipment replacement and supply cost increases.
“We thank our government for its commitment and support to post-secondary students through such measures as increasing weekly student loan amounts, indexing for inflation, and extending the grace periods before repayment of student loans,” said President Abd-El-Aziz. “These initiatives support our shared priority—enabling our post-secondary students to advance their education to succeed in a globally interconnected labour market.”
The undergraduate tuition increase of three per cent represents $17 per course or $170 per year for a student taking a full course load. Tuition for international students will also increase by three per cent, or $20 per course.
During the budget process, the university worked to minimize the impact on UPEI’s most valuable resource—our people—by continuing to reduce non-salary expenditures as much as possible. While the proportion of the operating budget allocated to salaries and benefits remains high at 71 per cent, UPEI was able to sustain its workforce through vacancy management and attrition.
Other cost drivers include anticipated flat domestic enrolment numbers, normal inflationary effects, salary increments, pension commitments and benefit costs. Significant expenditures falling under the Administration and Finance portfolio include Project Beacon ($800,000) and additional costs for utilities and services for the new School of Sustainable Design Engineering building ($430,000).
President Abd-El-Aziz added, “We recognize that the cost of post-secondary education is rising for our students. However, an increase in tuition fees is necessary to help counteract our significant budget pressures. Even with a three per cent increase, our tuition remains one of the lowest undergraduate rates in the region.”
UPEI Student Union President Nathan Hood said, “While we cannot endorse a tuition increase of three per cent, we understand the financial challenges that the University faces as do other post-secondary institutions across the country. We appreciate being included in discussions about the budget and are pleased that it does not include cuts to core student programs and services. However, the UPEI Student Union continues to take the position that annual increases to tuition should be indexed to the Consumer Price Index.”
The operating budget does not include research funds, which are budgeted separately on a project-by-project basis, but it does include the budget of departments that provide support to research. Capital projects, such as the construction of the new School of Sustainable Design Engineering, are also budgeted on a project-by-project basis and reported within the capital assets fund.
The University of Prince Edward Island prides itself on people, excellence, and impact and is committed to assisting students to reach their full potential in both the classroom and community. With roots stemming from two founding institutions—Prince of Wales College and St. Dunstan’s University—UPEI has a reputation for academic excellence, research innovation, and creating positive impacts locally, nationally, and internationally. UPEI is the only degree granting institution in the province and is proud to be a key contributor to the growth and prosperity of Prince Edward Island.
