University of Waterloo

Daily Bulletin

[Previous days]
[UWinfo home page]

Monday, July 24, 1995

"Bad, but not disastrous"

That's how UW president James Downey sums up the government's latest funding announcement, as it affects the university. A number of spending cuts were made official Friday by the minister of finance, Ernie Eves. (Said Eves: "The scope of the actions outlined in this statement is unprecedented for a government which has been in office for less than four weeks." The Progressive Conservatives are moving to do what they said they would do: cut government spending, especially on social welfare.)

Transfer payments to universities, colleges and boards of education are being cut, starting in the current year, as part of a general budget trim for the ministry of education and training. Reductions were announced in dollar figures, rather than percentages: $32 million taken away from boards of education, $6.8 million from colleges, $16.8 million from universities.

Here's the text of a memo written Friday afternoon by UW's provost, Jim Kalbfleisch, for circulation to members of executive council:

Attached is a copy of the statement made by the Finance Minister earlier today. MET has been given 1995-96 spending reduction targets of $80 million (operating) and $40 million (capital). We do not know precisely how this will affect us, although the Finance Minister states that 1995-96 payments to universities will be reduced by $16.8 million (about 1%). UW's share of this would be about $1.2 million.

Some of the other announcements may also affect us. The Province will reduce its contribution to the Canada-Ontario Infrastructure Works program to save $73 million in 1995-96. (I believe this is a change in cash flow rather than in total funding to be provided.) Pay Equity funding is being capped at $500 million per year. Funding for the High Performance Computing Centre has been cancelled.

Mid-year funding reductions are never pleasant, but overall the reductions are not as great as had been rumoured. So far as we can tell, funding for the new Science and Engineering building has not been affected.

Also from the minister's statement on Friday: "All programs offering grants, loans or guarantees to business have been frozen. . . . Social assistance rates will be reduced by 21.6 per cent effective October 1. . . . The JobsOntario Training program is being cancelled. . . . Funding for the Training for Workplace Innovation and Demonstration Projects programs will be eliminated. . . . Additional capital savings of $187 million will be achieved through project cancellations and spending freezes. . . . Payments to all social service agencies funded by the Ministry of Community and Social Services will be reduced by 2.5 per cent."

Faculty association's statements

The May-June issue of the faculty association's newsletter Forum came out on Friday, with some news of interest:

And in other news, briefly

And to end on a bright note: congratulations are due to Jay Thomson of the kinesiology department, who shot a hole-in-one on the 15th at Conestoga golf course yesterday.

Chris Redmond
Information and Public Affairs, University of Waterloo
(519) 888-4567 ext. 3004
credmond@watserv1.uwaterloo.ca

Mail comments to the editor