With Prince Edward Island’s projected deficit nearing $60 million this year, the provincial Liberal government’s March 27 budget announcement amounted to an about-face on last year’s promise of restoring the province to fiscal balance by 2015.
Finance Minister Wes Sheridan delivered a new three-year plan that holds the line on spending in most government departments, in order to balance the budget by 2016, a year later than proposed in his last budget.
Betty Jeffery, president of the University of Prince Edward Island Faculty Association, said holding the line on post-secondary funding in the province this year follows on a three per cent cut last year, with an additional burden resulting from introduction of a harmonized sales tax of 14 per cent on April 1.
“Zero per cent is going to hurt,” she said. “In the best of years, without introduction of a new tax, zero per cent means a decrease.”
Jeffery estimates the HST will cost the university about $450,000 annually from operating funds, and questions the province’s approach to funding post-secondary education.
“Over half of all PEI students who pursue higher education leave the province to do so. When you are the only university in the province, and you aren’t getting much support, it doesn’t make sense,” she said.
The government’s 2013–2014 budget also announced that this year a new Smartforce PEI program will provide $240,000 to Holland College “to allow businesses and individuals access to online learning to enhance their skills.” Up to 8,000 online courses will be available through the program over the next two years.