Provincial Recommendations

A memo from the Assistant Deputy Minister, Ministry of Training, Colleges and Universities

March 17, 2009

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MEMORANDUM TO:	Presidents of Colleges of Applied Arts and Technology Executive Heads of Ontario Universities, Ontario College of Art & Design, Northern Ontario School of Medicine College de Hearst and Dominican
FROM:	Marion Crane Assistant Deputy Minister Postsecondary Education Division
DATE:	March 17, 2009
SUBJECT:	Managing Expenditure Restraints

On December 2, 2008, the Ontario government announced measures to constrain spending on public salaries and to freeze the current size of the Ontario Public Service (OPS).

The announcement was built upon expenditure restraint measures that were identified in the Fall Economic Statement and implemented across the OPS. As part of this exercise, ministries were asked to consider how to reduce their expenditures and to track and report on the measures taken to achieve this objective.

Ministries have been asked to manage their costs, and the cost to the taxpayers of Ontario, in the following ways:

• Using non-print forms of advertising, including job advertising;

• Delaying the implementation of any office relocations/expansions where possible;

• Freezing the purchase/lease of new vehicles;

• Postponing or cancelling IT projects or limit the scope and number of IT projects, depending on contractual obligations;

• Reducing the use of print, photocopying and fax services; and

• Managing and Reporting Expenditure Restraint Measures

• Containing travel costs by using another form of communication such as teleconferencing or video conferencing, or combining/scheduling face-to-face meetings to maximize efficiency.

In addition to the measures above, the OPS has limited increases to the salaries of senior management to 1.5%. In keeping with the government's leadership in controlling spending and in recognition that the responsibility for the management of public funds lies collectively with the government and the Broader Public Service (BPS), the government is encouraging its partners, including colleges and universities, to limit pay increases of employees earning more than $150,000 to 1.5 percent.

The careful management of expenditures is not new to Ontario's postsecondary institutions and I know that many have already taken steps to contain costs in light of the province's fiscal reality. Over the past several years, with the effective use of increases in government funding, we have made excellent progress in providing an accessible, quality postsecondary education to the benefit of individual students and Ontario's labour market. I have every confidence that with continued strong financial management at the institutional level, we will continue to advance that goal.

While being mindful of the legislative and contractual framework within which your institution operates, I would ask that you continue to ensure that your organization is actively seeking efficiencies to manage the expenditure of public funds in a manner consistent with the new fiscal environment. Pursuing collaborative initiatives with sector partners may offer opportunities for the shared management of fiscal constraints.

Your leadership is essential to assist the province in demonstrating a prudent and balanced approach in the management of public funds.

Marion Crane
Assistant Deputy Minister
Postsecondary Education Division

cc: Vice Presidents of Finance
Colleges Ontario
Council of Ontario Universities
Managing and Reporting Expenditure Restraint Measures