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U of C freezing salaries to deal with provincial budget cuts

U of C freezing salaries to deal with provincial budget cuts

The University of Calgary announced plans today to deal with the provincial budget cuts.

Last month, the provincial budget announcement indicated that post-secondary funding from government would be reduced by 1.4 per cent in 2015-16 and further by 2.7 per cent in 2016-17.

The loss of funding, combined with inflationary cost increases means the university is facing a shortfall of between $37- and $47-million over the next academic year.

The university held a town meeting today to announce it is freezing salaries for all of its executives and senior leaders for a year effective July 1st.

"We think this is a strong statement for our community in terms of managing and setting a tone at the top," said provost and vice-president (academic) Dru Marshall.

Salaries and benefits are the largest expense at the U of C, representing 58 per cent of the university's expenditures.

Marshall says the university has balanced the budget for 2015-16.

"I think the positive news is that the University of Calgary is in good financial shape," she said. "We have an ability to strategically take our time, so we have managed the cut in the first year, we will be balanced and then we will determine a strategy going forwards for how we are going to manage the overall shortfall of funds."

Marshall also notes that enrolment will be increased to ensure the university meets targets for accessibility.