In December the university submitted its budgetary request to government. We estimated that maintaining operations at current levels would require an additional $7.3 million for 1999-2000 and $7.7 million for 2000-2001. The university's budget presentation to government was published in the Jan. 21, 1999, issue of the Gazette.
I'm sure I share with many of you the opinion that the provincial government's decision to increase the university's operating grant by $7 million in each of the next two years was welcome news. The increase will bring our operating grant to $106 million (not including Medicine) which is actually less than what government provided annually at the beginning of this decade. Thus the increase was much needed. As a result, we were able to hold the line on tuition, which will remain at $3,300 for a full-time undergraduate student (except in Medicine) taking 10 courses over two semesters.
The very public announcement on Jan. 14 of these additional funds will probably increase expectations. The fact is that the $7 million is not a pool of funds for new initiatives. Rather, it allows us to maintain academic programs, salaries, services and tuition fees at current levels.
It does not factor in wage increases beyond the normal step increases that have already been negotiated.
This year will see the beginning of negotiations on new contracts for MUNFA and CUPE, our largest unions. If such negotiations result in salary increases, and I have little doubt that this will be one of the main goals, it must be understood that there is no existing pool of money from which such increases can be found.
The money would have to come from government as an increase to our operating grant, or internally through program reduction or other means; indeed government was informed of this in our budget submission.
All this is by way of suggesting that the process we have begun, to re-shape and re-define the university, must continue. We must continue our efforts to develop a highly efficient and cost-effective academic and administrative structure. We must do all this together and in view of our mutual aim, which is to make Memorial University the best that it can be. The $7 million gives us time to complete the process of re-examination and hopefully signals a trend toward greater funding of this institution. It also signals a willingness on the part of those charged with developing and implementing public policy to provide appropriate levels of funding for an institution of the size and complexity of Memorial. This is a good thing for the institution, for its employees and students, and for the entire province.
A. W. May, O.C.
PRESIDENT AND VICE-CHANCELLOR