Budget Update

Last week, the Provincial Treasurer presented the Fiscal 23 Budget (April 1, 2022 to March 31, 2023). Due primarily to rapidly rising energy prices, the province will move from a deficit to surplus position. However, government spending will be reduced by 4.5 per cent, including a 5.2 per cent reduction in operating funds to post-secondary institutions.

As pointed out by University of Calgary economist, Dr. Trevor Tombe, at this time last year, the provincial government was projecting an $11 billion deficit for fiscal 2022-2023. Now they are projecting a $511 million surplus for the coming year. Professor Tombe published the following table (on Twitter) to reconcile the changes:

Turning back to the 5.2 per cent reduction in post-secondary spending, this is roughly in line with the 6 per cent cut previously projected by the university. It does not look like there will be any adjustment to the funding to the Haskayne School for the 2022-2023 fiscal year.

Sadly, we will still have to cope with a $2.5 million cut in our funding from the university that will come effective on April 1, 2022. Please note that we are able to offset the $2.5 million partly with increased tuition fee revenues and other adjustments, but we will still face the need to find $1.4 million in savings to balance our budget for the upcoming fiscal year. I will be providing more information on our plans in the coming week.