The VUWSA Exec is facing a revision of its 2008 budget next month following a roughly $40,000 reduction in expected income.
According to Administration Vice-President Alexander Neilson, the $40,000 had been anticipated based on the projected student enrolment numbers provided by the University. Despite Neilson’s recommendation, the figure had been included in the budget.
“We were told there would be a two per cent increase in student numbers.”
Despite the recommendations given by Neilson during the budget setting, the figure had been included in the budget, leaving the Exec without the income expected from the extra levies when the increase did not eventuate.
As a result, a re-budget has been scheduled for April. “It’s a political decision what will get cuts,” Neilson said. Among areas facing potential cuts are clubs and rep groups, despite a motion passed by the Exec that allocated the revenue from their Establishment sponsorship towards the area.
VUWSA has a recent history of financial difficulties, with Neilson blaming the “[lack of] strong emphasis on the budget.” Over the past five years, the association’s reserves have decreased from approximately $400,000 to $60,000.
“They need to be at about $50,000 for the organisation to be stable,” Neilson said. The Exec are currently anticipating $20,000 to $30,000 surplus, or about one per cent of the total student levy income, which Neilson described as “really good.”