In the current release of the 2010-2011 post-secondary budget, the provincial government has increased the University of Winnipeg’s operating grant by two per cent from last year. However, this increase is less than half of the five per cent increase that has been granted for the past several years.

“I think it was basically as expected,” Mike Emslie, U of W’s controller and executive director of financial services said. “The province is in a tough financial situation and they have passed on some of that difficulty to us.”

Emslie said that the U of W will again have to look for ways to significantly decrease operating budget costs in order to come out with a balanced budget, like in the 2009-2010 academic year.

To aid in balancing the budget, the university will have to freeze the salaries of its senior administrative staff, who received salary cuts of up to 10 per cent last year.

Emslie did say that the money from the salary cuts, along with concessions made by support staff and faculty donations, was significant in maintaining the balanced budget last year.

“It had a major impact last year ... and has put us in a slightly better position this year,” he said.

“ The province is in a tough financial situation and they have passed on some of that difficulty to us.

Mike Emslie, Controller and Executive Director of Financial Services, U of W

The University of Manitoba is having to take similar measures to balance their budget. The U of M recently announced that 40 of its executive members, including senior administration and deans, will receive a zero per cent scale increase on their salaries for the 2010-2011 academic year.

“Technically, it is not a freeze,” said John Danakas, U of M’s director of public affairs. He explained that while none of the executives will receive a cost of living increase, some may still see an increase in their salaries if they have not reached the maximum earnings of their salary range.

A concern that both universities face in freezing executive salaries is the potential loss of respective executive staff.

“You can’t continue (to freeze salaries) because at some point you are just going to lose good people,” President and Vice-Chancellor Lloyd Axworthy said.

Danakas agreed, but said since this is U of M’s first year applying the zero per cent cost of living increase of executive salaries, losing members is not a major concern.

“It shouldn’t be an overwhelming impediment for recruitment or retention,” he said.

Despite the less than desirable actions that need to be taken to remain a financially stable institution, Axworthy said that such measures are inevitable.

“That’s part of being a university in Manitoba. You have to do it so you do it.” he said. “(But) it’s not an occasion for hallelujah.”

Published in Volume 64, Number 25 of The Uniter (April 1, 2010)