Georgian plans for strong, sustainable future

Feb. 16, 2017

For 50 years, a strong vision, clear sense of purpose and unyielding accountability to students and community has been the backbone of Georgian College. This continues under the new strategic plan launched last fall after 10 months of extensive consultation. Georgian’s plan is built on four pillars: accelerated success, meaningful collaboration, inspired innovation and strong foundations.

Georgian is implementing a series of operational decisions aligned with the strong foundations pillar to maintain a balanced budget and ensure a strong, sustainable future.

“Georgian, like all colleges, faces a significant shortfall in funding that has lagged behind inflation for many years,” says President and CEO MaryLynn West-Moynes. “In addition, we have our own specific pressures. For example, phasing out of the small, northern rural grant has been particularly difficult as Georgian provides service in multiple campus locations serving a number of small communities across the region. We designed our strategic plan to address these pressures, leverage opportunities and continue to differentiate Georgian as a postsecondary leader.”

The measures announced today include a number of restructuring moves, short-and long-term investments and $7-million in savings to balance the 2017-18 budget.

Kempenfelt Conference Centre

Georgian has begun the process to sell the Kempenfelt Conference Centre on Lake Simcoe in Innisfil, south of Barrie. Georgian assumed operation of the centre from the Province of Ontario in 1981, and while it operated successfully for many years, for the past decade, despite best efforts, the centre has been operating at a loss.

“This was an extremely difficult decision,” says West-Moynes. “However, the college’s core business is educating students and that is where we need to focus our time and resources. To be competitive, the Kempenfelt centre requires capital investment that Georgian is not in a position to make. A new owner will be able to bring new life to this beautiful property.”

The college will continue to operate the centre until the end of October. It will honour all bookings and accept new bookings within this timeframe.

Restructuring for the future

The strong foundations process included extensive staff consultation and data gathered through program and service assessment to improve financial sustainability at all seven campus locations.

The results will mean a change of assignment for many faculty. Beginning this year, approximately 70 full-time faculty members will teach during the spring/summer session. New classes will be created. Programs will be realigned to accommodate additional classes for popular programs with significant waitlists.

Another $2.2 million in savings and revenue will come from service areas, including but not limited to:

• contract negotiations with external vendors such as cleaning and print contracts
• savings on utility costs from upgraded lighting and infrastructure
• departmental changes in work processes, reducing spending on supplies and materials
• a two per cent increase in parking pass rates consistent with the rate of inflation

Staff affected by the changes have been advised. This includes the reduction of seven full-time administration roles – three effective April 1 and another four when the Kempenfelt Conference Centre closes.

While a number of full-time support staff positions are also affected, all full-time support staff will be offered reassignment based on seniority. The terms of the appropriate collective agreements are being followed.

Georgian’s Human Resources staff are working closely with all affected staff who will be offered job search or retraining assistance as appropriate and access to Georgian’s Employee Assistance Program. It is too early to fully realize the impact on part-time staff, although there will be some further changes.

Investments for the future

This allows the college to invest in new programs relevant to the needs of employers including a Biotechnology – Health diploma, Paralegal graduate certificate and Bachelor of Engineering (Electrical) degree with Electrical Engineering Technology advanced diploma.

In addition, capital investments will be made in program areas that support enrolment growth with two new Computer Assisted Design labs, two new Bring Your Own Device labs, larger capacity classrooms, and machine shop equipment to support engineering and computer science programs.

Further growth areas include international education, the new Advanced Technology, Innovation and Research Centre, and the development of new Georgian degrees and joint degree-diplomas in partnership with Lakehead University.

“We have been fiscally accountable while maintaining quality programs, service to students and our commitment to accelerating their success,” says West-Moynes. “The decisions announced today will put Georgian on the path to a more secure and sustainable financial future. In addition, we continue to work with the government to secure funding that will ensure students in central Ontario have equal access to diplomas and degrees.”

BACKGROUND

Since 2007-08, provincial funding for Ontario college operating costs – in real dollars – has decreased each year. Colleges have suffered an accumulated shortfall – adjusted for inflation – of about $900 million over the past 10 years.

According to a new report by PwC (formerly Price Waterhouse Coopers) , the cumulative shortfall at Ontario colleges from the current year to 2024-25 is projected to reach $1.9 billion if no actions are taken.

At Georgian College, the budget pressures are compounded by a number of additional factors including:

• loss of the small, northern rural grant, announced for phase-out in 2011 and fully realized last year
• declining demographics of youth 18 to 24 in Simcoe and Grey counties at a rate greater than the provincial average
• Laurentian University’s withdrawal from the Barrie Campus in 2016