REGINA -- University of Regina president Vianne Timmons says post-secondary institutions expected a budget cut, but the amount is a shock and will be felt deeply across campus.

The Saskatchewan government said in the new provincial budget on Wednesday that funding for post-secondary schools is being cut by five per cent to save $30 million.

Timmons says there's no way the school can absorb the loss, so it will have to look at job and possibly program cuts.

The Canadian Federation of Independent Business and the Canadian Taxpayers Federation both criticized the government's decision to raise the PST to six per cent from five.

The CFIB says that will hurt business growth and the taxpayers group says it will increase the overall tax burden for Saskatchewan residents by $900 million dollars.

The funding cuts and tax increases are measures the government is taking to help tackle a $1.3 billion deficit and bring it down to $685 million in the year ahead.