The AMS is projecting a $1.25 million deficit for the 2022/23 fiscal year as a result of the COVID-19 pandemic, according to the president.
In late August, The Ubyssey published a piece breaking down the AMS’s 2022/23 budget. The AMS is expecting $4.2 million in revenue, $5.45 million in expenses and a $1.25 million deficit. However, some questions around the causes of the budget deficit and the AMS’s increased expenses were not answered before press time.
In a statement sent to The Ubyssey after the first budget piece was published, AMS President and interim VP Finance Eshana Bhangu said the student society’s deficit is the result of the COVID-19 pandemic’s impact on businesses in the Nest.
“Prior to the pandemic, our businesses, the revenue from which go into the operating budget, were contributing over $1 million and the significant decline in business revenue hasn’t had an attractive impact on the operating budget projections,” Bhangu said. The 2022/23 budget, the AMS projects its businesses to generate $372,188 in revenue.
Bhangu said that despite the deficit, the AMS is able to financially support its membership, academic clubs and other constituencies operating on campus.
According to Bhangu, the AMS’s increased spending this year is intended to improve the social life on campus and increase the number and size of events like the Welcome Back BBQ party in September and the 100-year anniversary of the Great Trek in October.
“With a back to (relatively) normal school year as we welcome thousands of students to campus (returning and for the first time), our operations and expenses are projected to be closer to pre-pandemic levels, coupled with dramatic increases in labour and supply related costs,” Bhangu added.
“Regardless of the projected expenses, the AMS does not and will not compromise with the quality of services and experiences we strive to create for our students and we’re excited to give our membership a warm welcome this fall.”
Bhangu said the AMS’s 2022/23 budget deficit is manageable and will not affect students’ academic and social life in any way.
In a message to The Ubyssey, Bhangu addressed why the deficit appeared to jump from $1.16 million to $1.25 million between the June 1 budget presentation to Council to the final budget approved on June 27.
"The discrepancies are usual in general though since there’s some difference from preliminary budget to the final budget (when we have a preliminary budget) and that presentation was kind of in lieu of the prelim budget," she wrote.
This piece was updated at 11:51 a.m. on Monday, September 12 to include additional comment from Bhangu.