The Silhouette

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Quarter life crisis, see page 7 McMASTER UNIVERSITY'S STUDENT NEWSPAPER / THURSDAY, JULY 9, 2009

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The Silhouette Est. 1930

Speaker resigns

VOLUME 80, NO. 2

Missing something?: The walk to Chester New Hall is missing a McMaster icon as construction on the Arts Quad continues

Cites poisoning work place JEFF GREEN EXECUTIVE EDITOR

“We clearly had a situation where the assembly’s rights are being impinged… as I started to become more of a problem for the board, they started to become more of a problem for me.” Those words came from a July 7 interview when former MSU Speaker, Norman Kearney, who sat down with the Silhouette to talk about his resignation, the events leading up to it, and the aftermath. Kearney cited the “poisoning” work environment as the primary reason for his departure, and issued an update to his resignation on July 8. The document sent outlined Kearney’s interpretation of the MSU bylaws in reference to the approval of $375,000 expenditure for the renovation of Quarters. Kearney described an email sent to the Student Representative Assembly (SRA) members from MSU VP Finance Andrew Caterine that described the demolition that had already been done in Quarters, prior to an approval of expenditure by the SRA. He outlined that while the Executive Board can approve up to $6,000, anything above that would have to go to the SRA, which had yet to meet. In describing the issue, Kearney said, “The issue was a circumvention of the assembly’s rights…. whether this was done as a malicious act or an act of complete incompetence, I’m not sure.” Prior to the SRA meeting in which the $375,000 Quarters renovation was approved, Kearney resigned. Recalling the events leading up to his interpretation, and ultimately his resignation, Kearney recalled, • PLEASE SEE KEARNEY, P3

le milk

Senior Andy Editor Grace Evans reviews the graphic novel, French Milk.

Andy P12

BAHRAM DIDEBAN / MANAGING EDITOR

McMaster expects deficit in 2010 Finance Committee Chair more optimistic than President George after the release of the University’s 2009/10 consolidated budget Sam Colbert Silhouette Staff

“I am very concerned about the financial health of the University,” said McMaster President and Vice-Chancellor Peter George in a memorandum to the University’s Board of Governors. The note appeared at the head of the McMaster University 2009/10 Consolidated Budget, which was approved by the Board in June. According to the report, McMaster will spend $830 million on capital, research and operational activities in the upcoming fiscal year. It is in the Operating Budget, which makes up $484.5 of these expenditures, that a $26.9 million deficit is

expected. Although this amount will be spent strictly on “onetime expenditures,” and roughly half of the University’s remaining appropriations – reserves set aside for situations such as this – will cover the deficit, McMaster’s financial problems are only beginning. “[The 2009/10 budget] does not fully address the significant short-term and longterm financial challenges that the University is facing,” added George in the memo. The financial situation “will require significant cost cutting in 2010/11. “These challenges amount to a minimum of $50 million in new annual costs that the University will have to fund in the next few years. This will be a major challenge and will cause a great deal of tension and stress to our community.” The 2009/10 period is the final year included in current financial planning, which was initiated in June of 2007. In all models that extend beyond 2010, McMaster predicts an increasing

deficit with each fiscal year. The report names a number of spending pressures that will contribute to future struggles, including salary and benefit costs, maintenance of infrastructure, the continuation of sufficient academic resources and inflationary costs. The report also cites the recent recession as a contributing factor in the University’s financial troubles. McMaster’s investments reserved for pensions and postretirement benefits have suffered,

causing a deficit in their area of the budget. To fill this widening gap in future years, money will be drawn from revenue intended for operating costs. The pension deficit will be an estimated $8 million to $10 million in 2009/10. The poor market conditions have also decreased the return on endowments left to the University, causing further decreases in resources. • PLEASE SEE BUDGET, P3

BAHRAM DIDEBAN / MANAGING EDITOR


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