University of Alberta president says low tuition is no longer an option

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The University of Alberta will have little choice but to keep raising tuition amid provincial funding cuts and financial challenges due to COVID-19, president Bill Flanagan says.

In an interview with the Edmonton Journal editorial board Friday, Flanagan said making university accessible with low tuition is no longer an option and called on the province to improve financial assistance and grants for students in need.

“The challenge in Alberta is we’ve had a system of low tuition but also a system of low financial support. We could increase tuition in Alberta, and we need to look at that … but we can’t increase tuition without a commensurate effort and a real focus on supporting students with financial need,” Flanagan said.

Alberta needs more generous financial assistance programs, such as that of Ontario, he said.

The institution is aiming to save up to $120 million through its restructuring plan that will reduce the number of faculties, shuffle some administration, and cut under-utilized programs. Details will be announced next week.

The restructuring follows a $110-million loss in funding over the province’s last two budgets.

“Every aspect of the services we provide on campus will be touched,” Flanagan said.

Many services will be more centralized, like some human resources staff, instead of being spread out among faculties, Flanagan said.

Revenues from things like food services and parking, shut down because of COVID-19 measures, “have pretty much evaporated,” and the costs of implementing online learning have been “significant,” said Flanagan. In the university’s 2020-21 budget, it forecasted approximately $95 million in revenue from the sales of ancillary services and products, but a university spokesperson said it is unclear what is the total loss due to the pandemic.

Flanagan said the Alberta government is looking to the post-secondary sector to help restart the economy, but will need to prove it’s value to taxpayers.

“I want the province to be reassured that its investment in the U of A is one that is paying great dividends for the people of Alberta,” he said.

Historically, universities got funding and grew organically with that funding. “And surprise, surprise, at the end of the day it’s not the most efficient model,” said Flanagan.

A performance-based model would make funding conditional, requiring certain targets to be met, such as specific graduate skills or employer satisfaction with graduates, but has been delayed until next year in Alberta.

While he said those measures could “drive really good outcomes,” delaying them for longer during restructuring and COVID-19 might be something he would suggest to the government of Alberta.

“We’ve got a lot on our plate right now,” he said.

But Flanagan said there is no plan to diminish the humanities, social sciences or fine arts. “Humanities are critical to a vibrant and thriving society, and likewise a thriving and vibrant economy,” he said.

Because the province is so hamstrung, the U of A will need to focus on capturing federal grants.

“My message to my colleagues is that we really need to redouble our efforts to seek federal support,” he said.

The university will also need to shrink its campus “footprint” by divesting assets, Flanagan said. Some of its nearly 490 buildings will need to be decommissioned or repurposed to drive revenue, like the conversion of Michener Park from student residences to a commercial development, said Flanagan.

Fall enrolment numbers, including international students learning online, have held steady, said Flanagan.

“We’re very encouraged by this,” he said.

lijohnson@postmedia.com

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