Quebec universities forced to scrap construction and renovation projects due to cuts

Universities in Quebec are scrapping renovation and construction projects for the foreseeable future after the Quebec government announced new funding arrangements that would cut infrastructure budgets.

In a letter to the McGill University community, provost Christopher Manfredi and vice president Fabrice Labeau said the Legault government informed the university recently that there would be changes to the funding mechanism for capital projects "that severely affect McGill's financial capacity to proceed with such projects."

"These changes impose a yearly cap on the amounts the provincial government will fund, with the projected cap for the current year being much lower than the amount we had planned to spend," the letter reads. "As such, no new project is to begin and all calls for tender for construction are hereby suspended until further assessment."

The projects, the letter said, include laboratory upgrades and upgrading McGill's aging buildings.

Concordia University will also be affected.

"It's impact appears to be significant," said Concordia spokesperson Fiona Downey. "We are currently assessing the situation in greater detail."

Quebec's ministry for higher education said Finance Minister Eric Girard announced the decision to modify the transfer payment standard in March after recommendations from the Quebec auditor general.

"From now on, capital grants will be paid as repayments of temporary loans rather than through long-term debt servicing. In addition, the government determines the annual investment levels to which all departments and agencies must adhere," said ministry spokesperson Esther Chouinard.

Chouinard said that the ministry is in regular communication with the universities and that they were informed about the changes.

"In fact, the Ministry regularly discusses educational infrastructure with schools," she said. "Bilateral meetings have been held since last spring and will be held in the coming weeks to help universities implement these changes."

McGill said in its letter that the funding for the projects is separate from the grants to cover operating costs. These funds are used for most construction and renovation projects.

"Based on preliminary discussions with government officials, McGill estimates it will have to reduce its annual spending on construction and renovation projects by about half due to these changes," the letter says.

The university is now doing a "strict review of all projects not yet in construction."

"We anticipate having to reexamine, and possibly cancel, many projects, with a view to prioritize those that are critical to maintaining the health and safety of our community and the continuity of University activities," said McGill.