2011-12 budget report
DESCRIPTION
2011-12 Budget Report. ECC March 9, 2011. Fiscal Context. Funding for higher education is flat, and decreasing in many jurisdictions Regulated provincial tuition framework continues Enrolment demand remains strong at UTM - PowerPoint PPT PresentationTRANSCRIPT
2011-12 Budget Report
ECCMarch 9, 2011
Fiscal Context• Funding for higher education is flat, and
decreasing in many jurisdictions
• Regulated provincial tuition framework continues
• Enrolment demand remains strong at UTM
• Pension challenges: like almost every other Canadian and US public sector institution with Defined Benefit pension plan
Overview• Balanced budget for 2011-12; Gross ‘Y’
$171.6m(Ancillaries ‘Y’ of $23.4m not included)
• Continue to pay down accumulated deficit @ $3m/yr High = $20m; Now = $14m; 2015/16 = $0
• Fiscally prudent & responsible budget enables us to manage well relative to other academic and central divisions
• Continuing uncertainty: (i) compensation settlements in new regulated provincial environment; (ii) pension debt
Enrolment• Total UofT Planned growth of 2500
students by 2015-16 to 81,000 (69,400 FTE)
• St George A&S Decrease of 1200 full time students
• UTM and UTSC additional growth planned but dependent on space capacity
• MTCU caps on domestic graduate and UG spaces
• International enrolment planned to increase across many divisions
FTE Enrolment at the University of Toronto
2000 - 2015
4,000
7,000
10,000
13,000
16,000
19,000
22,000
00 01 02 03 04 05 06 07 08 09 10 11P 12P 13P 14P 15P
20,466
14,780
14,208
10,247
8,923
16,773
8,557
10,412
4,818
4,679
A&S St George
St George other divisions
Tri-campus graduate
UTM
UTSC
International Enrolment as a Proportion of Total Enrolment
0%
2%
4%
6%
8%
10%
12%
14%
16%
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
90,000Total Enrolment Total International Enrolment as a % of Total Enrolment
3.8%
14%11%
Revenue category2011-
12$M
Operating Grants 4.4
Tuition – tuition and enrolment volume
14.1
Other (endowment, investment and application fees) 0.1
Total 18.6
Incremental Revenue over 2010-11
2011-12 New Revenue - UTM
Critical need to increase government support for per-student funding and student aid
Investment Income 2%
Provincial Grant38%
Scholarship grants1%
Other Income 1%
Tuition Fees 40%
Endowment 2%
CRC2%
Divisional Income12%
ICR2%
2011-12 Sources of Operating Revenue Total = $1.688B
Academic Budgets
Gross revenue
Net revenue to academic divisions
University-wide expenses
Student aid
University Fund
Expense• Careful controls on spending
• Base and OTO cost containments continue: – 3% base across central divisions– % varies across academic divisions
Gross to Net (Operating)• Gross: $171.6• Less: UWC ($28.7)
UF ($16.8)St. Aid ($ 6.9)Other ($ 1.3)
• Add back UF $ 4.9*• Net: $122.8*steady improvement, differentiated
Pension Problem• Estimated solvency deficit ~ $1billion• Based on certain conditions, government
may approve plan to amortize over 15 years (instead of 5 years)
• IF extended amortization period not approved, will face $200M per year pension special payments
Pension Impact at UTM• Historically, paid about $2m/year toward
debt• 2011/12 will pay an additional $2.9m (total
of almost $5m)• Included in UWC of $28.7m• Opportunity costs ($5 + $3 debt payment)
significant• Town-hall meeting: April 1st, 9 – 11 v/c
tie-in
Summary
Sound Budget StrategyAvoid Return to Debt
SpiralProspects are Good
But Money is Still Tight
Occupancy$95.4 23%
IT $29.0 7%
University Mgmt $16.1
4%
Financial Mgmt $7.6 2%HR $17.2
4%
Pension $45.1 11%
Advancement $23.6
6%
UT Libraries $73.2 18%
Research Admin $13.0
3%
Student Services $24.4
6%
UW Academic $30.9
7%
UW General$37.8 9%
University Wide Costs $425M