SAIT offers employees 'voluntary departure' buyouts to help squeeze budget
'SAIT, like all post-secondary institutions, is faced with budget constraints,' says letter to staff
The Southern Alberta Institute of Technology, citing budget constraints, is offering financial incentives for employees who want to voluntarily leave their positions at the Calgary school.
The news was given to staff in the form of an email, which was also leaked online.
"As you know, SAIT, like all post-secondary institutions, is faced with budget constraints. We're working closely with our union partners to find creative solutions and we're pleased to announce SAIT will be offering a one-time Voluntary Departure Incentive Program," the email reads.
The program requires employees to have a minimum of seven years service at SAIT to be eligible.
No one at SAIT was made available for an interview Friday, but in a statement spokesperson Chris Gerritsen said, "We continue to be proactive in a fiscally responsible manner."
"Working with our union partners, we were able to find a creative solution which helps us to remain nimble and focused on student success. This new one-time incentive program is entirely voluntary and is open to staff with at least seven years of service who may be looking for the chance to springboard to other opportunities, take some time off or even retire — the decision is in their hands."
On-going budget concerns
The Alberta government did increase funding in the last budget by two per cent, but the province has also lengthened a tuition freeze for post-secondary institutions.
In SAIT's 2016/2017 annual report, the administration made known its concern about the school's finances:
"SAIT's primary sources of funding for its grant stream are provincial government grants and student tuition fees. Base operating grant increases continue to be lower than inflationary costs, and student credit tuition fee increases continue to be limited to 0% with no ongoing funding provided to support the institution."
The annual report also mentions Alberta's carbon levy being introduced, which adds an expense for the institution with no offsetting revenues.
Last year, SAIT received $190.6 million in provincial government grants compared with $186.8 in 2016.
In a statement to CBC News, Alberta Minister for Advanced Education Marlin Schmidt said, "Our government has shown its commitment to ensuring Alberta's students have access to high-quality affordable education."
"We rely on our institution partners to responsibly allocate funding in the best interest of students. SAIT has asked staff to help them manage their funding pressures through this voluntary program. Our expectation is that post-secondary institutions live within their means and limit impacts of any budget changes to staff and students wherever possible.
Schmidt said he would continue working with SAIT and all institutions.
According to the Government of Canada's profile of the school, there are roughly 2,300 people working at SAIT. The school's annual report says nearly two-thirds of its expenses are related to employees' salaries and benefits.
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