There are fears financial troubles at UHI Moray will push the college into insolvency.
And if that happens the Elgin college will be unable to meet its commitments to the £100 million Moray Growth Deal.
Concerns have been raised by Elgin North Labour councillor Sandy Keith.
UHI Moray has said it is consulting with unions on a recovery plan for the college.
Reputational damage incalculable
But that includes getting rid of 25 lecturers and 20 support staff.
And money to fund a voluntary redundancy scheme still has to be agreed by the Scottish Funding Council.
The Beechtree training restaurant at the Moray Street campus is expected to close and the BS (Hons) Fine Art degree is being shelved.
Also the college is axing some Stem subject courses previously offered to senior pupils at Moray schools.
Mr Keith has raised the issues with Cabinet Secretary for Education and Skills Jenny Gilruth, as well as Labour MSP Pam Duncan-Glancy.
Mr Keith said: “If the college doesn’t get the money from the Scottish Funding Council the word being used is insolvency. So closure.
£100m funding cut for colleges and universities
“This has to be avoided at all costs.
“Cuts to courses and staffing in an already low waged economy will be damaging.
“And the impacts upon students and their families will be considerable.”
A spokesperson for UHI Moray said: “We have a forecast operational deficit which we are continuing to work to reduce via the financial recovery plan.
“This deficit is a direct result of real term reduction in government funding, reduction in HE (Higher Education) enrolments and inflationary costs for staffing and non-staffing all of which are being experienced by the wider college sector in Scotland.”
The Sottish Government is cutting funding to colleges and universities by £100 million in the current financial year.
Mr Keith said UHI Moray was an “integral member” of the Moray Growth Deal board, that is looking to improve the local economy with £100 million of investment.
But he is worried problems mean it will not be able to fulfil its commitments to the deal.
College closure must be ‘avoided at all costs’
Projects the college is involved with include a business hub and an aerospace advanced technology and innovation campus.
Mr Keith said: “If UHI Moray went bust the reputational damage will be incalculable.
“UHI Moray should be playing its part in the Moray Growth Deal and helping to transform the Moray economy into the future.
“If not there is a risk parts of the plan will not be achieved and Moray will not see its promised transformation.
“I am concerned that there may be insufficient capacity to deliver the transformational growth deal.”
Mr Keith has also raised his concerns with the chairman of the college’s board of management Jamie Wilson.
Lecturers’ union EIS FILA has already passed a vote of no confidence in the senior leadership team at UHI Moray.
They say no proper consultations have been held with them over proposed cuts to jobs and courses.
Job losses
And the union is raising a formal dispute with them which will be heard at a meeting of the board of management this week.
Students studying the fine are degree are facing a two years pause in their studies.
And with UCAS applications closed it will be difficult for them to find another course for the next academic year.
Advanced highers in chemistry and biology have been cut from the curriculum offered to senior school pupils.
And three foundation apprenticeships in engineering, hospitality and food and drink are also being axed.
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