6M
Paper S-74
THE HISTORY OF THE CAPITAL FINANCING OF S. F. U.
In response to the recommendation of the Macdonald Report (January
1963) the provincial government moved for the establishment of Simon
Fraser University to be ready to receive students by September 1965.
The capital financing of the construction and expansion of S. F. U. was
combined with that for the other two provincial universities into a five year
capital program to run from 1964 to 1969. Based on a 1970 enrolment
projection of 22, 000 for U. B. C. 5, 000 for Victoria and 7,000 (total annual)
for S. F. U. , the total cost of the capital program was estimated at $68, 700, 000.
Of this needed total, the government agreed to provide $40, 700, 000 over the
five year period and the universities agreed to raise the rest - $28 million or
4116 -- from public subscription through what became known as the "3
Universities Campaign". S. F. U. 's share of the total $68, 700, 000 as based
on its 1970 enrolment projection was to be 4276 or $29, 760, 000.
It soon became clear, however, that the 7, 000 annual total student
population by 1970 (or 5, 000 student places), the basis of S. F. U. 's share of
the $68, 700, 000, was going to materialize in less than half the time expected,
indeed by September 1967. It was necessary, therefore, to try to build to
5, 000 student places even before the middle of the five year period -- by the
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summer of 1967. To do this borrowing was carried out on the basis of the
guaranteed income over the five years from our portion of the government
share (paid in annual installments) and the pledges on the capital development.
fund. However, even in this situation of a greatly accelerated building .
program there have been additional complications because of a short fall in
the total anticipated from the capital fund drive and from pressures on
certain areas of space. To date the three universities capital fund is
approximately $7 million short of the $28 million goal which means for S. F. U.
a loss in anticipated revenue from the five year program of 4216 of $7 million.
The result has been an inability to complete the five year program which our
enrolment was demanding immediately; Phase IIA (there was to be a building
phase every year from 1964-65) had to be cut short on classrooms and labs..
Then further pressures on space developed because of the efficient use of
space that was built into the design (S. F. U. came out with the lowest per
student building cost realized in the country in recent years - approximately
$5, 000)rii.eant that there was virtually no unused space. The cushion that
institutions like U. B. C. enjoy just did not exist here.
Finally there was the problem of the need to forecast originally not
only the total student population but also to project carefully the enrolment by
different disciplines in order to work out particular space requirements. The
. result is that even with the 5, 000 students some disciplines such as Biology
are considerably over the forecast for their discipline.
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The result of these complications in the provision of space has been
that the need to provide 5, 000 student places for this year has necessitated
the cannibalization of the 5th floor of the library, of some corridors in the
Science Complex, of the third floor of the west face of the academic quad,
and the provision of trailers for tutorial rooms and T. As in the more
crowded disciplines.
Anticipation of these various space problems was foreseen as early
as 1966
when plans were laid for the commencement that year of
ccnstruction beyond that originally contemplated in the five year plan. A
third building phase was to be completed, ready to handle the areas of bulge
and provide the necessary flexibility following September
1967
enrolment.
Unfortunately Phase III money, which had to come from beyond the five year
capital program, just did not and has not materialized. Phase Ill
construction (an extension to the science complex and a new classroom block
on the north side of the academic quad)was designed and out to tender by
Autumn.
1966.
The greatest expectation for money for this additional construction
was a definite indication that Ottawa was about to implement the capital
grant recommendation of the Bladen Commission on "Financing Higher
Education in Canada". This proposal called for an immediate university
$5 per capita grant based on provincial population commensurate with the
already existing federal operating grant. This would have meant at least
a third of
$9
million per annum for S. F. U.
The tragedy was that on the eve of the Dominion Provincial Conference
last October, when the government had their plan for this capital grant
already to announce, a hurriedly called Federal Cabinet meeting reversed the
position entirely and announced to a startled conference that the federal
government was bowing out of direct grants for post secondary.-education
entirely and would give the provinces tax rebates to an amount that discharged
any obligations the Federal Government might have. This meant that the capital
grant plan was scrapped and the two existing grants, the per capita operating
grant (had been raised to $5 per head earlier that year) and the vocational
schools grant, were transformed into a money transfer to the provincial
governments with educational costs being used as a formula only. So there
was to be no capital money from the federal government.
These sad developments left Phase III still on the books with indications
that with 5, 000 students in the Fall semester of
1967,
we would need at least
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part of
of the planned buildings. Thereafter the Board of Governors and I
spent many hours in exploring with the provincial government various
systems of raising the capital money, the most recent of which has been
a suggestion for a public bond issue similar to that for university capital
money in the New York State system and not unlike the issue announced
last week by the Alberta Government.
With the money not at hand and Phase III still not underway the
reality, besides the present crowding in certain disciplines, has been
that we cannot go beyond a 5, 000 student enrolment in any one semester.
This means a curtailment in new enrolment next September, a fact that
the Chancellor and I have recently made quite clear. Under the pressures
of this reality we are hopeful of some Solution within a very short time.
When a continuing source of capital money has been arranged we
will return to our original intent of building the University on the
Architects planned modular basis on a 2 year prediction of student
population.
P.D.McTaggart-Cowan
President.
October 25, 1967
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