MacEwan U dips into reserves to cover province's $5.5M cut

By Elise Stolte, Edmonton Journal

Grant MacEwan University's board of governors dipped into reserves Thursday and held the line on spending to approve a $218-million budget.

Despite a $5.5-million cut in provincial funding, the institution will spend the same amount in 2010-11 as this budget year.

The three-year forecast assumes provincial funding will be frozen for two years before increasing slightly.

The budget calls for growth -- several new degrees, new offices for administration to be built on top of the parkade and a large-scale switch-over in the campus computer systems -- to be funded internally, using up $17 million of the reserve fund between 2011 and 2014. The fund is projected to fall to $6.5 million by the end of five years.

"The only reason we're in this position is that we were warned it was coming. We get past that 2014 window, and it's anybody's guess," said Eric Young, who led his last board meeting before stepping down as chairman. He served six years and will be replaced by Oryssia Lennie, a former federal deputy minister of Western Economic Diversification.

MacEwan administration also released its first estimates for the cost of the single downtown campus.

The new building to house the centre for the performing arts and the school of business, along with an open park area west of the Robbins Health Learning Centre, will likely cost $350 million, said Alan Heyhurst, chief financial officer.

He stressed these are rough estimates but will be included in the new strategic plan to be presented to the provincial government. The province gave MacEwan $2 million to develop plans for the campus, but has not yet committed any capital funds.

estolte@thejournal.canwest.com

This article was published in the Edmonton Journal on May 21, 2010. Read the full article on the EdmontonJournal.com website.