AMS anticipates $738k deficit for the 2023/24 budget

The AMS presented its budget for the 2023/24 fiscal year at AMS Council on June 22.

The budget projects $5.1 million in revenue, $5.84 million in expenses and a $738,766 deficit.

In an interview with The Ubyssey, VP Finance Abhi Mishra attributed the AMS’s deficit to rising inflation, the province’s recent increase of minimum wage and the overall increase in consumer goods prices.

Mishra said the AMS plans to address the deficit by “cutting costs where you can, making the organization as efficient as possible … but also look for ways where you can increase revenue a little bit, where you can get external partners or sponsorships to cover up the difference in between.”

Mishra also pointed out that the student society has been running a deficit for a few years now. He said the AMS is developing a long term financial strategic plan to completely eliminate the deficit in the future.

The $5.1 million expected in revenue comes from student fees, businesses, investments and government-based subsidies.

While the AMS will receive a total $28.3 million in revenue from various student fees, comprised of almost $14.5 million from the AMS/GSS Health and Dental Plan, $2.68 million from the AMS Membership Fee and $5.55 million from the Student Union Building Renewal Fee, a majority of this revenue is non-discretionary funds that have already been committed to student services.

The AMS also anticipates $356,402 in earnings from its food and beverage businesses — with Blue Chip and Honour Roll being its two largest.

This year the AMS is spending $697,460 towards student services, a difference of $21,486 from last year. Some services receiving increase in funds include the AMS Food Bank, Safewalk, Tutoring Services and the Advocacy Office.

Overhead costs total to $2.1 million, which is a $160,542 decrease from last year. These costs include administrative expenses and employee benefits.

Expenditures on AMS Events are $418,000, which fell from last year’s total of $761,632.

Mishra said that despite the deficit, “the AMS would continue to support students … we do that through different capacities like the AMS Food Bank, Safewalk [and] Tutoring.”

“The mandate of the AMS is that we’re here to support students in the capacity that we can.”

This article was updated on July 12 to reflect the proper allocation for student services during the 2023/24 year. The Ubyssey regrets this error.