BC Government Letter of Expectations
From ClimateNetworkWiki
The BC Government Letter of Expections is part of the Places section of the Knowledge Base. Budget cuts have become a common phrase during annual budget meetings for post-secondary institutions. In 2008 universities and colleges are dealing with a 2.6 percent reduction on funding. This could account anywhere from $16 million to $50 million for some institutions. So how can the BC Campus Climate Network and the Go Beyond Project get institutions to become climate-neutral in the face of budget cuts? First the newly implemented Letter of Expectations needs to be examined.
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BC Government Letter of Expectations
The Ministry of Advanced Education traditionally indicated what the government was to expect of each university through annual budget letters. Usually these annual budget letters expressed numbers of undergraduate student spaces, graduate student spaces and number of student spaces in specific programs. Starting in 2002, budget letters also included performance measures for public universities. Released on June 9, 2008, the BC Ministry of Advanced Education changed Annual Budget Letters to new [ http://www.aved.gov.bc.ca/budget/welcome.htm Government Letter of Expectations].
On all of the letters of expectations they explicitly state on page 1 that “they do not create any legal or binding obligations on the part of Government or the Institution.” (Page 1)
The following are excerpts from Letter of Expectation.
Deficits
- “In keeping with legislation, should the Institution project that it will be unable to achieve its objectives with financial resource available to it Government approval by the Ministry of finance and the Ministry of Advanced Education is required.” Page 3
This section clearly outlines that post-secondary institutions cannot carry a deficit, which can be difficult when institutions try to implement large climate change and sustainability projects that have a large initial cost but help reduce long term costs.
Climate Action
- “Make all Provincial Government operations carbon-neutral by 2010”
- “Reduce GHG emissions by 33 percent below 2007 levels by 2020”
- “Reduce GHG emissions by at least 80 percent below 2007 levels by 2050”
The Government of British Columbia has set aggressive targets for all Provincial operations, and with the help of the BC Climate Network campuses across BC will hopefully be able to reach these targets. Issues are still present in terms of Northern campuses as well as other Provincial operations. Refer to the section “Tight Budgets and Northern Realities.”
Planning and Reporting
- “The Institution is expected to conduct its operations and financial activities in a manner consistent with legislative, regulatory and policy framework established by Government.”
- “Institutions are expected to comply with the policies.”
The planning area of a post-secondary institution not only allows for their current operating success but for long term plans to be set in place. Environmental projects and goals are long-term goals and take creative thought. Taking the stance that “institutions are expected to comply with the policies” creates an uneasy situation for future projects.
Consequences
“Persistent and substantial failure to achieve targets and complete deliverables may result in more formal action being taken, as deemed appropriate by the Ministry, with the Board Chair, following formal written notice of the issue or concern being forwarded to the Institution.” Page 9
Targets must be set, but only in specific ways with help only from specific groups. Tighter control means post-secondary institutions are less able to develop plans that suit their specific campus and reach long-term goals.
Capital Procurement Guidelines
“On October 27, 2006, the Premier announced a new capital standard for Government ministries and their agencies which include projects that exceed $20 million for the capital coast of a project. The focus of this new policy is to ensure rigorous examination of options in the planned stage to provide the best value for taxpayer’s money. A public private partnership will be considered the base case for procurement where the province contributes more than $20 million to the capital cost of a project.” Page 4
“During the term of this Letter, Government may provide additional policy direction to the Ministry. The Ministry will communicate any such direction, including implementation expectations, to the Institution as decisions are made.” (p. 7)
“The Institution is accountable for ensuring its planning and operations contribute to the successful achievement of Government goals and priorities as outlined in this letter.” (p.2) Public-private partnerships are the key area of this section. Please follow the link to the PPP’s section to read more.
What Government Letters of Expectations Mean to Post Secondary Institutions
Post Secondary institutions across BC are faced with strict guidance rules in terms of budgets. The result is that these institutions have less control on where money is spent, how money is distributed, and less control on long term budgeting. Furthermore, tighter budget control results in institutions having to look for private help if development is going to take place on campuses, resulting in even less control.
BC Government Letters of Expectations and Campuses Environment
Less money and tighter control means that post secondary institutions are not able to easily make the choices they want. This makes it more difficult to fund projects with sustainability benefits. With these institutions not being able to carry a deficit and facing smaller budgets they could face difficult economic situations.
Tight Budgets and Northern Realities
By examining the new Ministry of Advanced Education Government Letter of Expectations one can see that tighter budget restrictions is being placed on post-secondary institutions. What does this mean for northern campuses, which already have to cope with fewer students, harsher climates and less funding? Even less money to run the institution and implement green initiatives that could lower long term operating costs. What does this mean for the BC Campus Climate Network? Tighter budgets and stronger government control and consequences result in less desire for post-secondary institutions to make large environmental changes. Instead small, low cost initiatives will try to be established and implemented. Organizations not directly associated with the campus will play greater roles because of the separate state of their finances.
