By Ashley Mussbacher (The Cascade) – Email
Print Edition: September 25, 2013
According to the Student Union Society (SUS), due to funding cuts and rising inflation rates, student fees are no longer covering the cost of services.
At its September 13 board meeting, SUS’s financial committee presented an inflation policy which would allow fees to be raised to meet annual inflation rates no more than five per cent per year.
This inflation policy would have to be passed by student vote in referendum before taking effect.
Fees affected by this policy include the Student Union Society fee, Student Union Building fee, health and dental fee, and the Student Union transit shuttle fee.
“I want to stress that this policy does not mean there will be continual fee increases,” representative-at-large Thomas Davies says. “The board will have the ability to adjust fees with inflation, and that decision will be made on an annual basis, based on changes in costs.”
In 2012 the inflation rate increased by just under two per cent. The new policy would allow SUS to raise fees up to that amount. Davies explains the only fee where the policy allows for the cap to be raised over the inflation rate is the health and dental fee. All other fees are tied to the inflation rate.
According to SUS inflation policy (section 2.3), if a fee is not increased, or is not increased by the full inflation amount, the amount may never be carried forward and added to an increase in a future year.
Even if the inflation rate rises over the five per cent allowed in health and dental services, the policy does not allow fees to be raised more than the cap. At that point, a new policy will be drawn up.
“Over the past years, student benefits have been dramatically cut as the health and dental fee was stuck at $159, and that amount couldn’t support the level of benefits offered,” Davies says. “This policy allows adjustments to maintain or potentially increase the coverage level.”
He goes on to explain that the amount could go up anywhere between zero and five per cent; it is up to the board.
The five per cent clause in the inflation policy is one part of the answer to maintaining the SUS health and dental plan, which was cut dramatically after a failed referendum in the spring. As well, they will be looking to increase the fee from its current $159.
“The health and dental fee is the cornerstone of this policy, as we will not stand for continual cuts to student health,” Davies says.
There is no referendum at this point, but SUS plans to run the inflation policy simultaneously with the health and dental service referendum later in the fall semester.
“SUS is stretched further each year as inflation increases costs—from food for Weeks of Welcome to insurance—while our money available does not change.” Davies says. “Frankly, it is not sustainable; we will not be able to maintain and increase student services without an adjustment to the current system.”
