May 6, 2021
- On May 6th , I met with representatives of the Minister of Advanced Education and the Minister of Finance and Treasury Board to discuss a path forward to address the challenges with the salary grid RABBCA by OIC this spring.
- At the request of the Minister of Advanced Education representative, I provided an overview to the TBF representative of the impact of the OIC on PSI’s. I identified the impact based on the documentation that was used to inform the joint meeting of Presidents, Board Chairs and the Minister of Advanced Education
- The MacKinnon Panel report (page 39) was referenced in relation to the higher spending in Alberta on per student basis in comparison to the comparator provinces.
- The TBF representative confirmed that their Minister was not interested in “micro- managing institutions” nor creating guidelines that would lead to “bad business decisions”.
- It was agreed that an Investment Management Agreement metric on the ratio of administrative spending to program delivery spending calculated on a per student basis could provide the basis for an institution being considered for an exemption from RABBCA.
- Before proceeding with further work on this option TBF agreed to confirm whether their Minister would be open this approach. This was confirmed by a follow up phone call immediately after the meeting.
- The ratio of administrative spending to program delivery spending was chosen over an administrative spending cap to prevent creating a disincentive to growing enrollment.
- Until the IMA metric is developed and implemented, Institutions can submit a request for an exemption from RABBCA for specific positons by presenting a business case to the Minister of Advanced Education who will confer with the Minister of TBF who has the authority to grant exemptions under the OIC.
3. Next Steps
- Advance Education is currently developing the Work Integrated Learning measure for the Investment Management Agreement. That work will proceed immediately ahead of the development of the administrative spending measure.
- COPPOA has the opportunity to establish a small working group that will engage with institutions to develop and propose a definition of administrative spending that is simple, clear, supported by reliable data and easily implemented. The Minister of Advanced Education is prepared to work with COPPOA throughout this process.
- COPPOA will also work with Advanced Education to recommend a reasonable target ratio of administrative spending to program delivery spending that is comparable to other jurisdictions.
- Once these two steps are completed, the target for individual institutions will be negotiated on an individual basis as part of their Investment Management Agreement.
- Institutions with an approved IMA will be eligible for an exemption from the RABBCA OIC passed this spring.
Prepared by Bill Werry
May 6, 2021