Volume 142 · Issue 25 • March 25, 2009
thebruns.ca
brunswickan canada’s oldest official student publication.
Students big winners in provincial budget
SEE STUDENTS PAGE 7
Andrew Meade / The Brunswickan
NBSA President Duncan Gallant is among those pleased with the student-focused efforts of last Tuesday’s provincial budget announcement.
Josh O’Kane The Brunswickan
Duncan Gallant is a happy man. Gallant is President of the New Brunswick Students’ Alliance (NBSA), and three of the group’s major points of advocacy have been met in the new provincial budget announced last Tuesday. Several changes were made in regards to postsecondary education policy in the new budget. The biggest one of these in terms of dollar amount is a loan debt cap. Government student loans will no longer be able to reach an amount greater than $26,000 for a finished four-year bachelor’s degree. If a student owes more than this, up to 100 per cent of the excess will be simply forgiven by the province in order to bring the debt back down to the $26,000 mark – provided the degree is completed in a timely manner. UNBSU VP External Jon O’Kane says, “This acts, essentially, as a $6,500 [per year] student loan debt cap comparable to the $6,000 program the UNBSU fought for.” Finance Minister Victor Boudreau stated in the provincial budget speech that this will bring the province’s average debt down from the skyhigh $34,000 – the highest average student debt in the country – to a more average level of about $24,000.
SEE PUBLIC PAGE 7
The Brunswickan
While last Tuesday’s provincial budget announcement served up good news for student lobby groups, it didn’t bode well for civil servants and their families. The 2009-10 budget proposes significant cuts to services, and with it, 700 civil service jobs. Three hundred of these will be from public employees nearing retirement. The rest, however, will be laid off. Those public employees left after the cut will be subject to a two-year wage freeze. Any students hoping to find a job in the public service might want to look outside of New Brunswick; despite the provincial government’s attempt to retain students in New Brunswick by doubling its tuition tax rebate to $20,000, there won’t be any public service jobs waiting for graduates this year. A hiring freeze has been put into place in the provincial civil service. Tom Mann, Executive Director of the New Brunswick Union of Public and Private Employees, calls the budget “false hope for the everyday New Brunswicker.” He represents close to 8,200 union workers in the province. Four hundred New Brunswickers will go home
Sarah Ratchford
Also providing a relief from debt will be the implementation of loan payments based on income. If, after 15 years, a university graduate has conscientiously attempted to pay back his or her loans and not been able to pay them off completely, the loan will be forgiven. These are two major points previously pushed for by the NBSA. Another wish was granted to the organization as well: the scrapping of the $2,000 provincial grant given to first-year students. While this grant has been of benefit to first-year students, they are more apt to drop out of university than upper-year students, and they, having not yet had the chance to rack up high levels of debt, are not as likely to be high-needs students. This is a major point of importance with the NBSA – helping those in the highest need, not necessarily just low-income students. “These are the most comprehensive and progressive financial aid changes to be made in New Brunswick,” says Gallant. Also implemented is the investment of $3 million in funding put in place to improve access to PSE for underrepresented students – another action advocated by the NBSA. A tuition freeze has been put into place once more for the 2009-10 academic year for New Brunswick’s four universities. Additionally, the former $10,000 tuition tax
Tom Mann, Executive Director of the New Brunswick Union of Public and Private Employee, says there’s no hope in the 2009-10 provincial budget for everyday New Brunswickers.
with no job “and no hope” this year, says Mann. On top of that, approximately 40,000 civil servants and their families will have “no hope of keeping up with the economy.” While the job and wage cuts are accompanied by some tax cuts for New Brunswick residents, Mann says they’re in the wrong direction. “The method by which they’ve chosen to reduce taxes is not progressive – the wealthy get a bigger tax cut than those less wealthy.” New Brunswick residents deserved much more than just a “hopeful” budget, Mann continues. “I think they deserved to be told by the government through this budget how their sacrifices would actually contribute to the solution. That is missing in the budget.” Service cuts may be part of the solution, says Mann, but the cut in civil service jobs provides a “double negative” to the province. Cutting 700 jobs from the service is the equivalent of closing two small mills, he explains, and the 400 of them who will be laid off will be unable to afford spending money in their communities to help re-stimulate the economy. The cuts are ill-timed, he says, but what’s even worse is that the door is open for further cuts – which very well could happen, as Boudreau’s budget report predicts a deficit each year until at least 201213, when it is predicted to be $273 million.
Andrew Meade / The Brunswickan
Burdening budget could be false hope for NB residents
brunswickan canada’s oldest official student publication.
Volume 142 · Issue 25 • March 25, 2009
thebruns.ca