Whitehorse Daily Star

Campus cost overruns justified

Political hay being made in the legislature for more than $600,000 in cost overruns at Yukon College's new campus in Pelly Crossing is not sitting well with college president Terry Weninger.

By Jason Unrau on October 4, 2010

Political hay being made in the legislature for more than $600,000 in cost overruns at Yukon College's new campus in Pelly Crossing is not sitting well with college president Terry Weninger.

"The conditions (of post-secondary facilities) in Pelly when I first came here were absolutely deplorable, and we've been able to correct it,” Weninger told the Star this morning.

"When the tender came in, it was too high, so rather than cancel the project, because it was a good news story, we decided to go ahead.”

The lowest and only bid on the project, originally pegged at $1.4 million, came in at slightly more than $2 million.

But the fact that the Education department and Yukon College had to make up a portion of the shortfall does not sit well with Opposition Liberal Leader Arthur Mitchell.

"The Education department ... has had to cut $150,000 from its operation and maintenance budget. The college itself, as the minister admits, has to pick up another $100,000,” Mitchell said while querying Education Minister Patrick Rouble during question period last Wednesday.

"Will this mean fewer teachers, fewer educational assistants or fewer educational psychologists? What is being cut from the minister's department?”

Rouble responded that "Yukoners have grown weary of the Opposition's assertion about cuts, especially where no cuts exist.”

Approximately $150,000 worth of funds in Rouble's department had lapsed, according to the minister, and that cash has been redirected towards addressing increased costs for building Pelly Crossing's new satellite campus.

Weninger said the Yukon College's board of directors "totally supported” providing the project an additional $300,000 from its own $1.3-million surplus and that the expenditure "will have no impact on the (our) operating budget.

"The college, over time, has tried to put money away for these kinds of emergencies,” Weninger added.

Yukon College currently operates 11 satellite campuses across the territory and enrolment for last year at the Pelly Crossing campus was upwards of 120 students.

While Industry Canada contributed $700,000 to the project – half of the original estimate – Weninger hopes the federal government can provide more assistance.

"We're applying for 50 per cent funding for the additional funds required ... but we had to make a decision (in the interim) so we could move forward,” Weninger said.

With the lapsed funding from Education redirected at the project, and the college's $300,000 contribution, according to the $2.02-million cost of the Pelly Campus, currently under construction by Grey Wolf Building of Whitehorse, that leaves funding to pay for the completed campus $170,000 short.

In order to qualify for federal economic stimulus dollars, the Pelly campus must be completed by March 31, 2011 and Weninger said the project is on track to meet that requirement.

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