Déficit de près d’un million $ anticipé en 2022-2023 au Cégep

The Cégep de Victoriaville forecasts a deficit of $991,431 in its 2022-2023 operating budget, which amounts to $47,419,883, while expenses (expenses) amount to $48,411,314.

The general manager Denis Deschamps made the presentation, Monday evening, to the members of the board of directors gathered for the last time before the summer break.

Different elements, he said, explain the deficit, including a significant financial drain on the Ministry of Higher Education.

This funding cut represents 54% of the deficit, or an amount of $535,800. “It’s the big chunk in the deficit,” said the general manager.

“The ministry, in revealing the initial allocations for 2022-2023, told us about a very significant increase in funding for the college network. Good news, indeed, but in the same breath, he saw quite significant surplus funds accumulating in the network, namely several hundred million dollars in surplus funds or deferred balances,” explained Denis Deschamps.

This has led the Ministry of Higher Education to decree a cut of $30 million for the next fiscal year in college fund surpluses. “This cut represents an amount of $535,800 for us. We were informed that it would be a one-time puncture. There would be just one and it would be for the 2022-2023 fiscal year,” the CEO told the directors.

The Fédération des cégeps did not appreciate this announcement from the ministry, noted Denis Deschamps. “What we understand is that we would attribute the surplus funds accumulated in the college network to poor management of operating funds. We do not agree with this vision,” he said.

The Cégep de Victo has $3.5 million in its surplus. “But it’s not just public money from the ministry. There is also this money emanating from the surplus funds of our three college technology transfer centers (CCTT) which do their business in self-financing, as well as the continuing education service. It is therefore not necessarily public money that is sleeping in our coffers”, pointed out the DG.

The deficit is also explained by an amount of $185,999, ie the total forecast deficit of the three CCTTs, Inovem, CETAB + and CISA. This is the financial impact linked to the unionization of CCTT professionals. “The year 2022-2023 will be the second year of impact of the new salary structure of our CCTTs. Many employees raise their salaries significantly. That’s very good news. But at the same time, it requires our transfer centers to review their business model to cover their costs and return to a balanced budget,” explained Denis Deschamps.

Without the ministerial cut and the CCTT deficit, the Cégep’s anticipated deficit would have been $270,000 rather than $991,000, specified the DG. “It’s a big bite this year. We did not expect this. It hurts,” he admitted.

But Denis Deschamps exposed new sources of income to come, such as those of $50,000 additional and permanent linked to the financial partnership for sports infrastructure, or the annual sum of $850,000 for the refinancing of the National School of Furniture. and cabinetmaking. “Next year, on an annual basis, one million will be added to the network of national schools, which will represent a sum of $115,000 for the Cégep de Victoriaville,” indicated Mr. Deschamps.

The Director General also expects increased funding for the National Institute of Organic Agriculture. Not to mention the review of funding standards undertaken by the ministry for all programs offered in the college network (more than 130). “It will give us extra money. All CEGEPs, they said, will win. And then, the anticipated increase in customer base in the years to come will translate into a positive financial impact,” he argued.

Thus, in the light of all these elements, the management committee of the Cégep, said Mr. Deschamps, is quite comfortable presenting to the board of directors, this budget with a strong deficit. “There are a lot of mitigating measures there that make the situation much more positive than it actually is when you look at the numbers,” he concluded.