Constructive solutions

I’ve taken two extended posts now to heavily criticize the University of Alberta’s current move to tax students to make up for their growing deficit, but rather than merely oppose, how would I fix the problem?

While I’m no economist (likely a good thing in this case), and don’t have access to the entire financial records, a few methods strike me as immediately effective at easing the deficit crunch that they’re facing.

First off, change has to start at the top. While the combined $2.6 million salaries and benefits of 4 of the executive are not enough to cover the deficit, the leadership must take ownership of not just the success of the university, but also it’s failures.

A 30% paycut to each of the administrators would bring their salaries and benefits down from the mid $600,000s to roughly the level of University of Toronto president’s reported $430,000. Clearly a large, successful school does not need to pad the pockets of its administrators as lushly as the UofA does, especially in these tough economic times. This represents a savings of $780,000 among the top four, and similar cuts across the rest of the administration would likely add up to a million dollars. It may also be higher once all faculty deans and related administrators are taken into account. This move is in part punishment for mismanagement, but also symbolic of the fact that if students must shoulder some increase, than the administrators must also.

Obviously, there will be resistance to a large pay cut and the UofA will lose some of its administrators. To them I say, good riddance. This new higher wave will allow the university to analyze which administrative positions are positively contributing to the university, and which are superfluous positions. Further, fresh ideas from a new crowd could actually help turn the school around. Poach administrators from small to mid-size schools that are not having as much difficultly succeeding in these tough economic times and use their ideas to restructure the UofA so this doesn’t happen again.

Similar to cutting the budgets of the administrators, the university needs to re-examine its role as a contractor. I’ve seen no evidence that contracting out labour tends to save costs, and if anything, tends to exacerbate disparity as contractors tend not to have the protections afforded to university unions.

Next, cancel the Physical Activities & Wellness Centre and other proposed new buildings and halt construction on several others. When I left the university last year there was over $1 billion in construction projects occurring. A lot of that money was coming straight out of the university’s budget, so until they can afford to, no more massive construction projects.

Finally, the hardest suggestion I have is to cap or even decrease enrolment levels for the next few years. While there will be a small loss in revenue by having fewer students enrolled, it will offer a chance to ensure those who are there get a good education, and that the university can afford to teach them. This will also negatively affect high school students who are just at the edge of academically acceptable for the university, however, we ought to be basing university enrolment on academic and not economic merit. I’d rather a poor student with a 95% average got in then a rich one with 75%.

By capping enrolment the university can scale back its absurd vision of its future expansion and focus on the present. This will also ease the pain of freezing capital projects until they are absolutely necessary.

It doesn’t seem like it’s that hard to me to get this deficit under control. Unfortunately the university administration has convinced many students that more money is necessary for a steady-as-she-goes approach. Meanwhile, no one has questioned the actual causes for the current situation, and as the saying goes, “those who forget history are doomed to repeat it.”

Even more disappointing, however, is that the current hierarchical structure of the university will prevent almost any of these changes from being implemented by the current administration who only stand to lose in this scenario, but win under any other (even the university going under and them taking home giant severance packages). So to affect these changes, students need to get vocal and resist every tax and fee increase.

Tacit acceptance in not an option if you care about the future of the University of Alberta.

Where did the UofA’s money go?

Further to my comments yesterday about the University of Alberta’s Engineering Student Society endorsing plans to tax students, Brendan Taylor, with the Student Worker Action Group of APIRG has linked me to his complete financial analysis of the operating budgets of the UofA (plus many other institutions) over the past decade. To complement his analysis, I thought I’d highlight some striking differences between the UofA and Simon Fraser University (my current school).

First, If we look just at surplus, until 2008, the UofA had a steadily increasing budget surplus while SFU has actually been running a deficit for the past 8 years, only getting the deficit under control in the past year. So while this current deficit may seem radical for the UofA, it seems peculiar and more likely to be in part due to a one-off lost in investments as opposed to evidence that they aren’t ripping students off enough.

Next, we can see that SFUs funding has been mainly attacked by a 12% reduction in provincial funding over 10 years, while the UofA has maintained a constant proportion of provincial funding. That last data point for the UofA getting 15% more funding in 2007-08 represents a large sum of money going only to capital projects. SFU clearly made its budget losses from the provincial government up by raising tuition while the UofA shows a small drop in percentage funding from tuition. However, non-tuition fees at the UofA have nearly doubled in the past decade, and with the proposed COSSS fee and “Market Modifiers” tuition will increase by roughly 20% or more in the next five years.

The UofA has also shifted its budget from the academic ranks and increased benefits and non-academic salaries. The largest increase is the doubling of expenses on external contractors. Meanwhile, SFU slashed academic funding from its budget in roughly 2003-05 and cut other salaries equally. We do notice with SFU a steady increase in student support that is absent from the UofA. This funding likely explains SFUs consistent top-notch performance in comprehensive university rankings.

As I mentioned, the UofA got 15% more provincial funding in 2007-08 than average, but similarly capital costs were up 15% as well, so that more likely represents singular grants for construction costs. This does help confirm the scenario where the UofA tried too hard to expand too fast under the “Top 20 by 2020” mandate that the administration has now disowned.

Brendan’s best graph for the UofA compares the runaway costs to students to cover the runaway costs of the university executive:

Tuition is legislated to rise no faster than CPI, hence the nearly perfect correlation, meanwhile, we can see that before the market modifier tax is applied (which will raise engineering student’s tuition by an additional 10-15% per year) students are already being forced to pay almost exponentially increasing amounts to cover salaries that are fast outgrowing inflation.

Education may cost money, but it’s clear that education is no more expensive then it was a decade ago, the only change has become this competitive drive to “be the best” school which has brought on overpaid bureaucracy and unaffordable expansion.

The free market model of competition between universities does not seem to make them any more efficient, in a story almost identical to Wall Street, we see corporate execs earn top dollar while those on the bottom continue to suffer.

Ashamed of my peers

Picture 54

That’s my naked right pinky finger. On most engineers (who are right-handed) you will typically find a piece of iron (actually stainless steel) that represents their obligation to engineering. I didn’t get mine because I refused, and still do, to sign the Obligation that would have required me to hypocritically betray my conscience while pledging to be honest. While I would still appreciate being offered the olive branch to be included in that ceremony, I’m growing even more ashamed of the people who were once my peers.

Today’s Facebook check brought an invite to the page “Engineers in favour of improving our faculty and supporting the ESS" which lists a statement by the University of Alberta’s Engineering Student Society’s Board of Directors, a body made of up of the democratically-elected presidents of each discipline plus the executive of the ESS.

The statement outlines how the Board has consulted with the faculty administrators and decided that the best when to ensure that the “world class facilities and faculty” are kept in place is to tax students.

Oh wait, they don’t use the word tax, they call it a “Market Modifier.”

Market modifier my ass, the ESS has just sold the average engineering student up shit creek without a paddle.

I’m glad my finger is naked, because I’m ashamed of these tools.

Currently the UofA administrators are pushing forward, almost without protest, a mandatory tax, sorry “Common Student Space, Sustainability and Security Fee,” of $570 per student per semester to recoup some of it’s $57 million deficit. This fee is on top of the market modifiers, so the ESS is proposing that engineering students ought to pay even more than the average student.

But don’t worry says the University and the ESS, some of these fees will go straight back into scholarships!

So to help the un-affordability that extra student taxes are creating, they offer to throw a few bucks back, at only a few students. But don’t worry, titles like “ESS President” look really good on scholarship applications, so our wonderful Board members may be able to get their funds back, plus a little of their peers.

But why is the UofA in such dire straights?

Having the highest paid administrators in Canada can’t have anything to do with it, I mean, combined they only take in $2.57 million. That’s not even counting how much the deans and their staff are bringing in. Their vision of making the UofA “top 20 by 2020” (whatever the fuck that means, remember how they never explained it) has come at the financial stability of the school and now they’re pinning the exorbitant costs on students.

Where’s the lobbying to Stelmach? Where’s the lobbying to Ottawa? These people are also in part to blame.

But instead, you have students being manipulated by these people trying to protect their overpaid jobs.

I thought it was bad enough that far too many engineers are creationists or anti-science climate change denialists. But this takes the stereotypical right-wing engineer to a far new level.

Notice how they even tilt the language, using the word “market” as though a degree is a mere product to be traded, not earned. Entitled shits. Universities used to be about higher learning and expanding your mind. If this is the future of engineering, move it back to technical school and leave university for the actual academic pursuits.

Market modifiers my ass. A tax is a tax, and this is only going to hurt the University of Alberta. Tuition only goes up, and letting them raise it will only screw students in the long run.

I’m glad I got out. I feel sorry for those who will no longer be able to get in.

SkyShuttle Refund

Guess what came in the mail today (besides the notification that my tax refund will be at least $850 and my giant welcome package to Coast Capital Savings):

SkyShuttleRefund

That’s my $30 refund from Edmonton SkyShuttle. They also offered “apologies for the lack of service.”

While I still have no plans to use the SkyShuttle in the future (with three trips through the Edmonton Airport before May planned), it’s good to see that a Better Business Bureau complaint can still get resolved after some patience.

I’m still holding out hope that Edmonton Transit will get their shit together, work with the region, and get any kind of bus service to the airport.

What’s going on with the UofA SU?

The Gateway, the student newspaper at the University of Alberta, reported late yesterday that Students’ Union President Kory Mathewson submitted his letter of resignation effective Monday.

VP Operations and Finance Zack Fentiman will take over many of the roles in the meantime, but beyond that the article doesn’t get into much.

So can someone who’s still at the UofA dig anything up for me? It seems odd that anyone would quit a mere 3 months before the next executive elections.

Because democracy is too expensive

The two new members of the Wildrose Alliance won’t resign their seats and run in byelections under their new banner because apparently democracy costs too much. So much for accountability.

NDP Leader Brian Mason is calling the Wildrose Alliance’s two newest members to take their decision to cross the floor back to voters.

Anderson and Forsyth said Monday they do not plan to resign their seats because byelections would be too expensive.

‘Our party does not take a position on divisive social issues’

I call bullshit on Danielle Smith.

She recently did a live-chat for the Edmonton Journal’s Capital Notebook blog, and was asked a few times about her stance on gay marriage and equality for all. She answered:

Our party does not take a position on divisive social issues.

To that I say lies.

If the WRA forms a government in Alberta (even a minority), as the polls are dangerously suggesting, you can bet your unregistered firearms that there’s going to be more than a few social conservatives in her party.

Will she just let every vote on a “divisive social issue” be a free vote? Does her party stand against basic human rights?

I think the 39% of Albertans who are pissed at the Tories need to have a long hard look at this “upstart” party before they go dumping their vote on regressive climate denialists.

Of course, polls are meaningless when three-in-five of Albertans don’t vote.

This of course all has me hoping that these Reboot and Renew groups are actually more than techno-rhetoric.

Linda goes to Denmark

There will be at least one Albertan in Copenhagen fighting for real reductions in emissions from world leaders, and she’s posting her daily updates to a website for you to follow.

This is great for Linda Duncan and it comes on the heels of the news that Bill C-311 has finally passed the committee that the majority of Liberals needlessly sent it to a few months ago.

Copied below is her most recent e-newsletter that outlines the work she has been doing in Edmonton-Strathcona that may have been unnoticed compared to some who would seek to upstage her. Note how this is neither a wasteful 10%er nor a hyper-partisan attack ad.

December 2009

Newsletter from Linda Duncan, M.P.

Dear Friends,

As the holidays are almost upon us I wish to take this opportunity to wish you all the best of the season and share a few highlights from my work on the Hill. It may be an understatement to say it has been a very hectic Fall Session. We have celebrated some successes, but also some frustrations in our efforts to address the dual challenges Canada faces taking action for the economy and for the planet. I have provided brief updates on just some of some of our initiatives. We are doing our best to help you track my efforts and those of my colleagues in the federal New Democrat caucus through my web site www.lindaduncan.ndp.ca and my newsletters.

Climate Change and Environment

As the NDP Environment Critic, I have been fighting to get our bill, Bill C-311, An Act to ensure Canada assumes its responsibilities in preventing dangerous climate change to the final vote in the House of Commons before Copenhagen. Bill 311 would impose binding science-based targets for reduction of greenhouse gases and hold the government publicly accountable for taking concrete measures to comply.

Regrettably, 67 of 77 Liberals voted with the Conservatives to delay the final vote leaving the Bill languishing in Standing Committee hearings. (Testimony of the witnesses can be accessed via my website.)  As a result the only message from Parliament to the international negotiation tables will be the same regressive position of the Harper government.  Most other nations now view Canada as an impediment to success rather than a leader for change.  Rajendra Pachauri, head of United Nations Intergovernmental Panel on Climate Change, has said, “In the last couple of years, I’m afraid, Canada has not been seen as sitting at the table. I think Canada should be doing much more.” But the pressure on Canada mounts and I will continue to dialogue with other governments.

In December, I will be going to Copenhagen for the talks.  I will be posting a daily report on my website www.climatecountdown.ca. I encourage you to contact me with your views and actions so that we may post them.

I recently introduced a private member’s bill to establish a Canadian Environmental Bill of Rights, Bill C-469, which outlines the Government of Canada’s obligations to protect our rights to a healthy and ecologically balanced environment.  If you would like a copy, please contact my office:  780-495-8404.

Fair, Sustainable Trade

The Government’s indifference to the environment is also apparent in their international policies.  In June, for example, we debated the Canada-Peru trade agreement.  In my speech, I said, “Instead of strengthening the environmental provisions of our trade agreements, we are moving to water them down further. Despite the weaknesses of the North American Agreement on Environmental Cooperation, NAAEC, recommendation after recommendation to strengthen that agreement went in the opposite direction. The government has chosen to further downgrade any responsibilities for environmental protection either on this country or on the countries with which it signs trade agreements.”  You can find the rest of this speech and others at www.lindaduncan.ndp.ca/news.

In November, we again debated the Canada-Colombia Free Trade Deal and I noted:  “Every time we raise concerns about the government’s failure to act on environmental protection measures and climate change, it speaks of balance, and yet this agreement and the side agreement on the environment has severely pared back any environmental conditions as found in the agreement that we have with Mexico and the United States.”

Pensions

We tabled a series of bills and motions to implement a comprehensive plan designed to place Canada’s retirement income system on a more secure and equitable footing. A number of the motions received all party support. Many of the bills are in Committee.

Some of those measures include:

· Eliminating seniors’ poverty by increasing the income-tested Guaranteed Income Supplement (GIS) by $700 million a year. Since the majority of poor seniors are women, this is also the equitable thing to do. We will pay for this by cancelling $700 million from the Conservative’s next planned corporate tax cut, due in January.

· Working with the provinces to phase-in a doubling of CPP benefits (from about $11,000/yr. to almost $22,000/yr.), thus giving Canadians the chance to save in the least expensive, most secure, inflation-proof, retirement savings vehicle. Cost? An additional 2.5% of wages (matched by employers.

· Security for workplace pension plans through (a) a mandatory national pension insurance plan, paid for by pension plan sponsors and guaranteeing pension pay-outs of up to $2,500/month, and (b) a national facility, managed (with provincial agreement) by the CPP Investment Board, to adopt pension plans of failed companies and continue them on a going-concern basis to take advantage of market conditions and maximize pay-outs.

· A public National Pensions Summit, with representation from all interested parties -federal/provincial/territorial governments, employers, workers, seniors and experts – to consider these and other proposals for addressing the national pensions crisis.

Child care

Twenty years ago, on November 24, the Leader of Canada’s New Democrats, Ed Broadbent, sounded the alarm bell on the tragedy of child poverty in Canada. Since then, New Democrats have been pushing for action.  Tony Martin, M.P. for Sault Ste Marie, campaigned to bring the House of Commons HUMA Committee poverty hearings to Edmonton.  They took place on December 3 and my office worked with anti-poverty groups across the city to make sure they had the chance to testify.

Quality child care is a vital part of ensuring get a good start in life.  Olivia Chow has reintroduced our Early Learning and Child Care Act and you can find out more at her website www.oliviachow.ca. 

Employment insurance

One of the major failures in the current economic crisis is that we have not properly protected all those who were thrown out of work.  New Democrat bills and motions have sought to enable more unemployed Canadians to get Employment Insurance coverage and to get it sooner. www.chrischarlton.ca/news/labour.

Protection for consumers

My colleague Brian Masse scored a major victory when a motion fully supporting the goals of his Right-to-Repair Bill (C-273) passed unanimously in the House of Commons.  Brian’s bill dealt with the issue of on board diagnostic capabilities, which are contained in approximately 59 per cent of vehicles on the road in Canada. The use of computer control units is essential for proper vehicle maintenance. Difficulty in obtaining this equipment from vehicle manufacturers has created significant consumer concern and competitive barriers. Bill C-273 resolves these issues and guarantees a level playing field.  Canadians will be able to choose whether to have maintenance done by a manufacturer’s official dealer or an independent repair shop.

Jim Maloway, New Democrat M.P. for Elmwood-Transcona, was less fortunate in his attempt to bring in a bill of rights for airline passengers.  The Bloc Quebecois joined the Conservatives in trying to defeat his bill.  The Edmonton Journal ran an editorial on this on November 25.  In Don’t ground passenger rights, the Journal noted: “The facts are that Bill C-310 is a perfectly reasonable piece of legislation patterned after the European Union’s passenger bill of rights, which has been in force for five years without a hitch.”

Similarly, the Government has failed to act on the motion put forward by New Democrat consumer affairs critic, Glenn Thibeault, calling for comprehensive credit card legislation.  Glenn’s motion was passed by a majority of M.P.s, but the Finance Minister’s response of voluntary regulations have completely failed to protect consumers and small and medium-sized businesses.

Post-secondary education

Like many of you, I am deeply concerned that the financial problems being experienced by the University of Alberta and other post-secondary institutions will mean even higher fees for students, who are already struggling financially.  It is very difficult to find time to study properly when you have to take on two or three part time jobs.  According to the 2009 Statistics Canada report on university tuition fees released this morning average tuition fees for undergraduate students rose this year by 3.6 per cent despite the Consumer Price Index (CPI) dropping 0.8 per cent. Graduate students fared worse, facing an increase of close to 5 per cent.

Niki Ashton, New Democrat post-secondary critic is proposing a Post-Secondary Education Act. Similar to the Canada Health Act, it will guarantee that every federal dollar spent on PSE goes towards building an accessible high-quality post-secondary education system across the country.  I welcome input from students on how high tuition fees are affecting their education.  Please contact me:  [email protected].

Justice

We have been overwhelmed this fall responding to a litany of “crime” bills mostly tabled as private member bills by Conservative back benchers. This practice has the very undemocratic result of reducing opportunity for debate. In most cases, no factual basis is offered for the measure. There appears to be a clear policy of reducing judicial discretion. We have agreed to send some of the bills to Committee in hope of improvement and in other instances opposed the reform as unnecessary. We have made constant requests for more resources to prevent crime through increased support to police, RCMP, prosecutors and community prevention programs. I based my vote to maintain the gun registry on the advice of Edmonton’s police chief and officers across Canada who believe it remains a valuable crime intervention tool.

In the riding

I attended the Edmonton Federation of 2009 Volunteer Recognition Gala on November 13th.   Volunteers from Ottewell, McKernan, Argyll, Empire Park and Bonnie Doon were all recognized as heroes of their communities for their extraordinary contributions.

In early November, Strathcona Community League received a plaque from the Edmonton Historical Board.

There have been a wide variety of other events in our riding, from Remembrance Day in the Butterdome to Make Poverty History in the University Quad, which was once again a tribute to the dedication and idealism of the young people who organized it.

I would like to thank McKernan, Queen Alexandra, Hazeldean and Mill Creek Schools, who all invited me to come and read to them during Read-In Week. I was pleased to speak to classes both at University of Alberta and King’s University College.  I would also like to congratulate the students at King’s who organized, with Amnesty International, a rally about Omar Khadr.

Our arts community continues to flourish, with excellent plays at local theatres this fall.  I was very pleased to see that Maria Dunn was nominated for Solo Artist of the Year at the Canadian Folk Music Awards.

Please contact my office with questions, requests and concerns.  You can also visit my websites:

www.lindaduncan.ndp.ca

www.climatecountdown.ca

You can also join me on Facebook or follow me on Twitter.

As it is the time of year when we tend to do extra shopping, I would like to encourage you to support our local businesses! I wish you and your families all the very best for the holiday season and the New Year.

 

Linda Duncan, M.P.

Edmonton-Strathcona

10049 81 Ave

Edmonton, AB, T6E 1W7

780-495-8404