Report on Resources

Introduction/Comments

For the 2003/04 fiscal year, the Ministry of Advanced Education spent less than its budget. Savings were generated by lower than expected demand for BC Grants; lower than expected interest rates; and increased sinking fund recoveries off-set by one-time amortization pressures. These savings were redirected to the province's public post-secondary institutions.

		Resource Summary by Core Business Areas

Capital Expenditures and Financing Transactions

Prepaid capital advances are funds provided to public post-secondary institutions for approved capital costs of new buildings, renovations, improvements, equipment and capital leases. These expenses support the Ministry's goals for a top-notch post-secondary system.

Under the Student Financial Assistance Programs, receipts represent the principal repayments on outstanding loans and disbursements represent loans provided to students. These transactions support the Ministry's goals for economic and social development and responsive and effective management.

Major Capital Projects

Project Name: Simon Fraser University (SFU) Surrey Campus at Surrey Central City

Objectives:

The SFU Surrey permanent campus at Surrey Central City will address current capacity shortages and growing demand for post-secondary education in the South Fraser region. This proposal will provide facilities infrastructure to accommodate enrolment growth of up to 2,500 student FTEs, contingent upon economic conditions and educational considerations.

Costs:

Total acquisition costs for the SFU Surrey permanent campus were $34.9 million with an additional estimated $35 million for completion costs and fit-out improvements over a seven-year period. These are in addition to program expansion start-up costs, faculty ramp-up costs and ongoing FTE costs (all part of Government operating costs).

Benefits:

Acquiring the Surrey Central City property will enable SFU to expand access in a region that represents 24 per cent of BC's population and includes some of the fastest growing communities in the province.

Risks and Commitment:

SFU has structured its proposal to enable a phased approach to capital improvement of the space and enrolment growth. With a staged growth and facilities acquisition plan that mitigates risks and reduces debt-service costs, the Central City site will provide SFU with cost-effective capacity to address university education needs in the South Fraser region immediately.

The phased approach to capital improvement foresees initially fitting out only a portion of space to accommodate up to 1,273 student FTEs. Future capital commitments are contingent on economic conditions and educational considerations.