|April 23, 1999||Volume 6, Number 15|
LETTERS TO THE EDITOR
Story heading said inaccurate; government promises eight-year funding plan
The headline "March 26 budget contains no capital funding for University's building projects" [April 9/99 OCN], p. 2] is incorrect.
The facts are that the March 26 provincial budget provides the University of Saskatchewan with $14.4 million for capital projects in 1999/2000 fiscal year. Of this amount, $5.5 million will be allocated to building projects.
The Thorvaldson and Kinesiology building projects will cost approximately $79 million. These will be funded over eight years by allocating $5.5 million out of the $41.4 million promised to continue into the future plus an additional $7 million in each of five years from 2000/2001 to 2004/2005.
Financing these projects in this manner rather than with an immediate lump sum allocation will impact the progress of actual construction due to the need to balance cash inflows with cash outflows over the financing period.
It should be noted that, because of the age of many buildings on campus and the serious space shortages, other building projects will have to be started in the eight-year financing period mentioned above.
The Board of Governors has indicated its willingness to borrow lump sum funding from the financial markets if the government were to guarantee future cash flows to pay off such loans. Discussions with government are ongoing in this regard.
- Tony Whitworth, Vice-president (finance & administration)
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