The university had asked the province for a 5.8 per cent increase from this year's government grant. Last week's provincial budget increased provincial funding to the U of S by 2.1 per cent, aggavating an already-projected shortfall, Fairbairn said.
The latest provincial budget, plus a trend of decreasing government funds to universities across the country, are prompting the U of S to prepare itself to slash costs in the long run, Fairbairn said.
"In addition to whatever short term budget challenges we may face in the year ahead, there's a new environment for public funding of higher education that we need to take into account," he said.
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