Board of Governors April 20, 2010 2010-2011 Operating Budget - - PowerPoint PPT Presentation

Board of Governors

April 20, 2010 2010-2011 Operating Budget

Presentation Outline

• Background
• 2009-2017 Planning Framework
• Tuition Fees
• Miscellaneous Fees
• Proposed 2010-2011 Allocation
• Recommendation

Board of Governors, April 20, 2010 2

Board Schedule

December 2009

• 2010-2011 Operating and Ancillary Budget Framework

March 2010

• Review framework for 2010-2011 Operating Budget
• Present 2010-2011 Ancillary Budget for approval

April 2010

• Present 2010-2011 Operating Budget for approval

Board of Governors, April 20, 2010 3

Board Approved Framework for 2010-2011 Budget

• The Administration be directed to develop a

2010-2011 operating budget that will permit progress towards institutional priorities and achieve a surplus of $1m;

• Prioritize the identification of additional fiscal

monies for the pension reserve fund.

Board of Governors, April 20, 2010 4

Budget Considerations

• Revenue
• Enrolment Forecast
• Undergraduate
• Graduate
• Tuition Fee Framework
• Government Funding
• Expenditures
• Pension Plan
• Salary Growth

Board of Governors, April 20, 2010 5

March 25, 2010 Provincial Budget

• Two-year tuition fee framework - overall increase for

domestic students of 5% with 10% set aside for student support; automatic calculation of student access guarantee;

• Full base funding for 2009-2010 undergraduate

enrolment;

• Likely full base funding for 2010-2011

undergraduate enrolment;

• Restraint Act freezes compensation level for non-

unionized employees for two years;

• Solvency relief not provided.

Board of Governors, April 20, 2010 6

Current Pension Status

• With member consent, solvency deficits can be

amortized over ten years and special payments can be deferred for one year;

• Majority of the special payment liabilities are in

respect of retirees;

• Increases to Minimum Guarantee contribution will

start July 2010;

• COU continues to lobby Ministry of Finance.

Board of Governors, April 20, 2010 7

Projected University Contribution ($m) Base Case - 10 year amortization, 6.5% return

2009-2010 2010-2011 2011-2012 2012-2013 2013-2014 Current Service Cost Money Purchase 8.2 8.8 9.2 9.7 10.1 Minimum Guarantee 2.8 3.5 3.8 4.3 4.6 Total 11.0 12.3 13.0 14.0 14.7 Special Payments Going Concern 0.1 0.1 9.1 12.3 11.4 Solvency

• 6.3

11.7 12.6 Total 0.1 0.1 15.4 24.0 24.0 Total Contributions 11.1 12.4 28.4 38.0 38.7

Board of Governors, April 20, 2010 8

2009-2017 Planning Assumptions

Revenue:

• Retention at average of past two years;
• Annual undergraduate tuition fees in order of

maximum allowed;

• Modest undergraduate enrolment increases;
• Undergraduate and graduate growth will be funded

in 2010-2011.

Board of Governors, April 20, 2010 9

2009-2017 Planning Assumptions

Expenditures:

• $5.1m budget reduction in 2010-2011 and an additional

$2.6m annual reduction in each following year;

• Salary increases will conform with Restraint Act

guidance;

• Annual extraordinary pension payments of $24m per

year will start in 2012-2013;

• Annual base fund of $1m for mission-critical initiatives;
• Enrolment-Linked Budget Allocation model in place

that provides 40% of net new income from undergraduate growth to faculties.

Board of Governors, April 20, 2010 10

• 30
• 25
• 20
• 15
• 10
• 5

5 10 15 20 25 30 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 $ millions

Special Pension Payments

Fiscal Reserve to 2009-2010 Draw on New Reserve In-year Base Payment Carry-Forward Reserve Fiscal Added to Reserve Base Added to Reserve

Finance/OIRP 2010-04-09

Special Payments Accumulation

• f New Reserve

Board of Governors, April 20, 2010 11

Proposed Budget Reductions

Reduce budget allocations by $5.1m (1.7%) including:

• 6 staff positions;
• Operating expenditures (travel, printing,

equipment, office supplies);

• Partially offset in teaching faculties by funds

from Enrolment-Linked Budget Allocation.

Board of Governors, April 20, 2010 12

250 260 270 280 290 300 310 320 330 340 350 360 370 380 390 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 $ millions

Long Term Financial Planning Model

Income Pension Pmt. Bridging

• Acad. Resource Fund

Special Pension Payment Base Expenditures

Assumptions: 10% increase in undergraduate intake by fall 2016; retention at average of past 2 years; continuation of government tuition policy but no funding for growth beyond 2010-11 Note: limiting expenditure growth to 2.8% annually requires base cut each year of $2.6 million Finance/OIRP 2010-04-08

2.8% growth per year

Board of Governors, April 20, 2010 13

Tuition Increases for 2010-2011

Domestic International

Overall Increase 5% 6% Selected Professional Undergraduate and Graduate Programs:

• First year
• Upper years

7%* 4% 6% 6% Other Undergraduate Programs:

• First year
• Upper years

4.5% 4% 6% 6% Other Graduate Programs 4% 6%

* Undergrad: BComm, BIB, BAS, BID, BEng Grad: MArch, MBA, MJ

Board of Governors, April 20, 2010 14

2009-2010 Undergraduate Tuition Domestic (First Year)

B.A./B.Sc. Commerce Engineering Computer Sci. Carleton 4,951 5,591 7,058 6,427 Brock 4,966 5,482

• 5,482

Guelph 4,988 5,692 6,182 5,692 McMaster 4,929 6,158 7,307 5,265 Ottawa 4,964 4,964 6,201 5,434 Queen's 5,005 11,226 8,215 5,005 Toronto 4,991 10,481 9,347 7,789 Waterloo 5,004 *5,734 **9,486 8,712 Western 4,937 ***20,265 8,095 4,937 York 4,989 5,692 5,692 5,692

Source: COU and Institutional websites. * Tuition fee for B. Math/Business Administration with co-op (Joint with WLU). ** Only available as a co-op program. *** A two year program, commencing in the student's third year.

Board of Governors, April 20, 2010 15

2009-2010 Undergraduate Tuition International (First Year)

B.A./B.Sc. Commerce Engineering Computer Sci. Carleton 14,406 15,140 16,985 16,539 Brock 13,337 13,337

• 13,337

Guelph 16,194 18,554 20,508 17,954 McMaster 14,549 15,108 20,006 14,549 Ottawa 15,134 15,134 17,973 17,199 Queen's 17,030 24,096 21,015 17,030 Toronto 21,344 25,005 24,013 21,879 Waterloo 17,582 *18,882 **25,346 18,854 Western 14,650 ***26,335 18,800 14,650 York 14,989 15,692 15,692 15,692

Source: COU and Institutional websites. * Tuition fee for B. Math/Business Administration with co-op (Joint with WLU). ** Only available as a co-op program. *** A two year program, commencing in the student's third year.

Board of Governors, April 20, 2010 16

2009-2010 Graduate Tuition Domestic (New Students)

MA MSc MBA* MASc**

**

PhD***

***

Carleton 6,024 6,024 7,572 6,432 6,024 Brock 6,471 6,471 9,170

• 6,471

Guelph 6,570 6,570

• 6,570

6,570 McMaster 5,565 5,565 12,096 5,565 5,565 Ottawa 5,942 6,229 17,009 6,229 5,942 Queen's 6,018 6,018 60,000 6,018 6,018 Toronto 6,366 6,366 34,012 6,366 6,366 Waterloo 6,432 6,432

• 6,432

6,432 Western 5,790 5,790 64,000 7,722 5,790 York 4,785 4,785 23,020 4,785 4,785

Graduate tuition is on a three-term basis unless otherwise noted. * The MBA at Queen's is Privately Funded. The MBA fees at Brock, McMaster and York are for two academic terms only. ** MEng Fee is used for Western. *** PhD Arts and Social Science used if fee varies among programs.

Board of Governors, April 20, 2010 17

2009-2010 Graduate Tuition International (New Students)

MA MSc MBA* MASc**

**

PhD***

***

Carleton 13,884 13,884 20,001 15,126 13,884 Brock 15,617 15,617 19,862

• 15,617

Guelph 15,714 15,714

• 15,714

15,714 McMaster 13,278 13,278 24,000 13,278 13,278 Ottawa 14,526 14,526 28,035 14,526 14,526 Queen's 12,366 12,366 65,000 12,366 12,366 Toronto 14,587 14,587 43,803 14,587 14,587 Waterloo 15,714 15,714

• 15,714

15,714 Western 12,900 12,900 74,000 12,900 12,900 York 11,273 11,273 29,212 11,273 11,273

Graduate tuition is on a three-term basis unless otherwise noted. * The MBA at Queen's is Privately Funded. The MBA fees at Brock, McMaster and York are for two academic terms only. ** MEng Fee is used for Western. *** PhD Arts and Social Science used if fee varies among programs.

Board of Governors, April 20, 2010 18

Examples of Tuition Fee Changes Experienced by Fall 2007 Entrants

2007-08 Year 1 2009-10 Year 3 2010-11 Year 4* 3-Year Change* Bachelor of Arts $4,534 $4,904 $5,100 +12.5% Bachelor of PA and PM $4,954 $5,358 $5,572 +12.5% Bachelor of Commerce $4,954 $5,517 $5,738 +15.8% Bachelor of Science $4,534 $4,904 $5,100 +12.5% Bachelor of Comp. Science $5,695 $6,160 $6,406 +12.5% Bachelor of Engineering $6,254 $6,764 $7,035 +12.5% PhD (per term) $1,893 $2,008 $2,088 +10.3%

* proposed

Board of Governors, April 20, 2010 19

Miscellaneous Administrative Fees

Fee Current Amount 0 0 2011 Proposed Increase * Omnibus Fee $35.00 $35.25 $0.25 CUSERT Fee $1.50 $1.50 $0.00 Supplement Fees $62.50 $62.75 $0.25 Challenge for Credit $187.50 $188.50 $1.00 Returned Cheque Service Charge $29.75 $30.00 $0.25 Late Registration Fee $148.00 $148.75 $0.75 Grad Application Fee $100.00 $100.00 $0.00 Grad Reinstatement Charge $62.50 $62.75 $0.25 Deferred Admission Fee $40.25 $40.50 $0.25 Letters Of Permission $34.75 $35.00 $0.25 Display Diplomas $103.00 $103.50 $0.50 New Special Students Documentation $45.50 $45.75 $0.25 Grad Leave of Absence $62.50 $62.75 $0.25 Admission Processing Charge $57.25 $57.50 $0.25 OSAP Processing Charge $45.50 $45.75 $0.25 Grad Extension of Time $62.50 $62.75 $0.25 *most fees increased by inflationary increase of 0.5% rounded to the nearest $0.25; Grad Application Fee not raised in 2010-2011 to match the University of Ottawa due to joint programs

Board of Governors, April 20, 2010 20

New 2010-2011 Funding Available for New Academic Resources Allocation

Available

• Base
• perating

$1.0m

• Fiscal
• perating

$3.7m

Board of Governors, April 20, 2010 21

Defining Dreams

Resources will be allocated according to plan priorities Location Innovation Real- world Problem- solving Community Engagement Sustainability/Environment √ √ √ √ Health √ √ √ √ Digital Media √ √ √ √ Globalization/Global Identities √ √ √ √

Board of Governors, April 20, 2010 22

Major Funding Initiatives

• Pension Plan

$7,300,000 base 7,405,000 fiscal

• Renovations to Vacated Space

2,000,000 fiscal

• Sustainability Initiative

1,000,000 fiscal

• Information Systems Projects

500,000 fiscal

• Student Recruitment

350,000 fiscal

Board of Governors, April 20, 2010 23

Recommendation

The 2010-2011 Operating Budget, as presented, be approved.

Board of Governors, April 20, 2010 24