Additional Appropriation Approved for Universities

The province has approved a $256 million additional appropriation for university funding in 2008-09.

"Funding for universities has always been a key priority for the government, and even more so in the current economic climate," said Finance Minister Jamie Muir. "Education is the foundation for the future growth of our province."

The spending will reduce the 2008-09 budget surplus, which was forecast in December to be $212.9 million.

The surplus will now be less than the amount of the offshore offset, which was legislated in 2005 to go on the debt. A change in the Provincial Finance Act will be required.

An official forecast for the 2008-09 year will be available with the spring budget.

"We are making some tough financial decisions in these difficult economic times," said Mr. Muir. "We are committed to balancing the budget while maintaining important programs."

The presidents of Nova Scotia's 11 universities were informed of the funding Monday, March 30.

The Nova Scotia legislature annually authorizes spending budgets, or appropriations, for individual departments, groups of departments or other categories. Where expenses in each area are expected to exceed the budgeted amount, an additional appropriation is required.

The Minister of Finance must file additional appropriations with the legislature within 90 days of the release of Public Accounts.