Durham College has a deficit

July 04, 2008 - 03:50

By Crystal Crimi

DURHAM -- A projected revenue shortfall in Durham College's operating budget is causing a $3.25-million deficit for the upcoming fiscal year.

The budget, which needs to be sent to the Province by the end of the month, features $111 million in revenue, but more than $114 million in expenses, a 2.8 per cent gap.

"I think people need to know, we know we have a challenge," said Don Lovisa, Durham College's interim president. "But we're optimistic we're going to be able to deal with this in the next few months and get things on the right track."

Although it's a large number, the deficit represents a small and manageable percentage, Mr. Lovisa said.

"We're still investing in the campus," Mr. Lovisa said, "When you look at the big picture, Durham College is alive and healthy and still going to deliver programs to 6,500 students."

Improvements students will see include renovations to some science labs, dental lab upgrades, a new e-lab, and other updates.

Aside from the regularly approved and regulated tuition and student fee increases, the school can't charge more to make up for the shortfall.

"We can't place this on the backs of our students, we have to find other solutions," he said.

The shortfall comes not so much with extra expenditures, but with revenue assumptions.

Initially, more revenue was projected than now anticipated. Some of those shortfalls are the result of market changes, such as contractual services the school provides and international opportunities. They college is now being more cautious in its predictions, said Mr. Lovisa.

He's not sure where the savings will come from.

"It's like any other budget, you have to make decisions about your priorities," Mr. Lovisa said.

They'll try to address the deficit so it doesn't impact students, but it's still too early to tell, he said.

Over the next few months, the school has to provide the Province with a deficit-reduction plan. Mr. Lovisa said Durham College will look to find savings and reductions to bring the budget as close to balanced as possible by the end of the year. Consultations are planned over the next few weeks and months to develop strategies.

Durham College's economic climate is similar to that of other post-secondary institutions due to market conditions, funding, and continuing costs, Mr. Lovisa said.

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