The Graduate Student’s Association (GSA) approved their budget for the upcoming academic year in the face of steep forecasted losses due to the Student Choice Initiative (SCI).

The outlined budget would use up almost half of the GSA’s reserve funds to absorb losses incurred from the SCI and Mike’s Place, taking $122,000 from the reserve fund.

The GSA budget shrank by nearly $150,000 compared to last year, in anticipation of a steep opt-out rate from the SCI. [Inforgraphic by Bailey Moreton]
The plan presented by Jesse Whattam vice-president (finance), at a meeting on June 28 forecasted an opt in rate of only 30 per cent by students.

This was based on numbers from when a similar opt-out initiative to the one proposed by Doug Ford’s government happened in Australia and New Zealand.

Overall the GSA’s budget shrank by nearly a fifth from last year, with the biggest cut going to service centre fees, whose budget dropped from $60,000 to $18,000. Significant cuts were also made to staff salaries and the budget for sending executives to Canadian Federation of Students (CFS) conferences.

Mike’s Place, the GSA run pub, is forecasted to make a loss of around $67,000, comprising half of the funds taken from the reserve. The forecasted losses are based on an average of the losses taken from the past seven years.

“The last three years has actually seen a more substantial loss,” said Whattam.

Mike’s Place has had significant losses over the past couple years, said Whattam. [Infrographic by: Bailey Moreton]
A budgetary committee was formed this year to look at diversifying food suppliers and beverage options, and potentially expanding the physical space in the future. But any plans all have to be managed within the expected shrinking budget as a result of the Student Choice Initiative, said GSA president Ashley Courchene.

“I think that’s just the general trend across campuses in Canada, where a lot of student bars aren’t making a lot of money,” he said. “I mean, ideally in a perfect world we would like to see Mike’s Place turn a profit, but I think the mission right now is to mitigate those losses as much as possible.”

The reserve at the beginning of this year totalled around $340,000, which will shrink by nearly half by the end of the 2019-2020 academic year. Depleting the reserve fund is something the association was hoping to avoid, Whattam said.

“But it’s just the reality of where we’re at right now,” she said. “We’re talking about the longevity of the organization.”

The uncertainty around how many students will stay opted-in, makes it hard to be certain on budgets, she added.

“But what we do know is that if our opt-in are that low (30 per cent) then our reserves are in jeopardy, and therefore the future of the organization is in jeopardy.”

Downsizing may have to occur if the GSA continues to face a loss of student fees due to the SCI. 

“Our objective would be to downsize in a way that like if we’re able to sort of overturn the Student Choice Initiative that we can easily expand again, when we see better times,” Courchene said. 

“But we have to ensure the longevity of GSA, because we are the ones that represent students. So it’s important that we are here, regardless.”

The key to avoiding further budget problems is fighting the SCI, he said. Legal fees is one of the few areas where the GSA budget increased. 

Despite cuts, salary still makes up the largest proportion of GSA spending (not including Mike’s Place). [Infographic by Bailey Moreton.]
The GSA is hoping to be part of organizing a wider strike action amongst student unions across the province, said Courchene. This would happen hopefully in around a year’s time, he added.

“If we just sit here and wait for the next election to happen it may be too late for student unions such as the size of ourselves,” he said. “If we’re able to really resist the Student Choice Initiative, that way then maybe the GSA can survive.”

 

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