Presentation in Full or in Part

Staff Forums: Powell River, Parksville, Nanaimo, Cowichan Campuses, Union Management

Committees: Budget, Deans & Directors, Service Managers, Senate

1

Provincial Perspective

New University Mandate

Budget Process

VIU Financial Data

Tuition and Enrolment

Budget Strategy

Long Term Next Steps

Questions

2

Temporary deficit to protect public services

$14 B for infrastructure investment

Provincial outlook weak

Managing through extraordinary economic times

$6.6 B decline in revenues

$1.9 B in government savings◦ Travel, professional services, office expenses advertising,

operating, grants

Protecting ◦ health care & education

◦ $351 M to sustain social services

3

Regionally focused – comprehensive programming –integrate teaching excellence, experiential learning

Catalyst for prosperity and socio-economic advancement, civic engagement, open access

Dedicated to:

Responsive and Sustainable University Education

Community Connections and Regional Focus

Knowledge Development and Innovation

4

1. Invest in Recruitment and Retention of Students

2. Enhance the student experience and campus life

3. Invest in Faculty and Staff

4. Initiate Institutional Transformation

5. Ensure Quality Programs

6. Build and maintain financial and physical resources

7. Engage regionally, nationally and Internationally

5

Preparation of proposals

Presentations to Budget Committee

Budget Committee report to Executive Committee

Vice Presidents’ consultation with Deans, Directors & Principals

Financial Services prepares detailed human resources budgets in consultation with Deans, Directors, and Principals

Budget approval

6

June/July request by VPs for strategic resource plans

Oct/Nov – Mid Year Review/revised budget to the Board

Budget Committee reviews fall enrolment report

Dec - Deans, Directors and Principals submit proposed strategic resource plans to VPs

Jan – Presentations to Budget Committee

Feb/March - VPs advise of preliminary budget allocations contingent on government funding.

7

Inflationary costs

Salary and increments

Infrastructure costs

Government funding formula

Tuition Cap

Past practices; recurring/non-recurring; unmet adjustments.

Capital Projects

Economy

Other

8

9

Operating Ancillary Services Contract Services Capital Special Purpose Foundation

2005 / 2006 65.5 6.8 20.2 4.3 2 0.9

2006 / 2007 73.6 7.2 20.4 4.9 2.2 1

2007 / 2008 72.6 7.5 22.8 4.9 1.9 0.5

0

10

20

30

40

50

60

70

80

Millions

Total Revenue by Fund

10

Provincial funding

Tuition and lab fees

Operating Fund

TuitionContract

Services Fund

Instructional Contracts

Research Grants

Curriculum Development

Contracts Other

Other

2005 / 2006 48.7 16.7 13.3 3.5 1.5 0.3 1.6 2.8

2006 / 2007 56 16.6 13.7 3.3 1.8 0.2 1.4 2.7

2007 / 2008 53.4 16.7 14 4.4 2.2 0.4 1.8 2.4

0

10

20

30

40

50

60

Millions

Sources of Revenue

Contract Service Fund

11

Operating Transfers

Annual Capital Allowance Grant

Tuition Supplement

Pension & labour Inflation funding Other

2005 / 2006 44.1 2.7 0.3 0.5 0.9 0.2

2006 / 2007 47.9 1.8 2 4.1 0 0.2

2007 / 2008 50.2 2.5 0.3 0.2 0 0.2

0

10

20

30

40

50

60

Millions Provincial Funding

2

12

2002 / 2003 2003 / 2004 2004 / 2005 2005 / 2006 2006 / 2007 2007 / 2008

11.4 14.1 16.3 16.7 16.6 16.7

0

2

4

6

8

10

12

14

16

18

Millions

13

2005 / 2006 2006 / 2007 2007 / 2008

Tuition - International Contracts 10 9.4 9.3

Tuition - Domestic Contracts 3.3 4.3 4.7

0

2

4

6

8

10

12

14

16

Millions

Tuition - Contract Services fund

18,768 18,102 18,758 19,46318,212 18,234

1,2811,214

1,1531,131

1,177 1,170

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

20,000

22,000

2002-03 2003-04 2004-05 2005-06 2006-07 2007-08

Domestic Students International Students

Planning_Group/Enrolment Reports/Headcounts/Year to Year/Total Headcounts by Fiscal Year 2002-07 Apr 24 08 CDW

14

6,090.2 6,342.6 6,441.6 6,561.6 6,492.0 6,653.5

944.6924.4 842.5 899.0 897.6 817.9

0.0

1,000.0

2,000.0

3,000.0

4,000.0

5,000.0

6,000.0

7,000.0

8,000.0

2002-03 2003-04 2004-05 2005-06 2006-07 2007-08

Vancouver Island UniversityFTE Enrolment by Fiscal Year

Domestic Students International Students

15

16

2000 / 2001 2001 / 2002 2002 / 2003 2003 / 2004 2004 / 2005 2005 / 2006 2006 / 2007 2007 / 2008

3.5 3.9 4.2 4.6 5 5.6 5.9 7.8

0

1

2

3

4

5

6

7

8

9

Millions

Endowment Fund Balance

17

InstructionInstruction and Student

ServicesInstructional

AdministrationGeneral Services

Board and Senior Administration

2005 / 2006 36.6 12.7 4.07 10 1.7

2006 / 2007 39.6 13.3 4.4 14.5 1.8

2007 / 2008 41.2 13.1 4.8 11.9 2

0

5

10

15

20

25

30

35

40

45

Millions Operating Fund Expenses

18

Salary & Benefits Other Total

2005-2006 55.4 9.6 65

2006-2007 62.9 10.7 73.6

2007-2008 62.4 10.6 73

0

10

20

30

40

50

60

70

80

Millions

Operating Fund Expenses

Research Chairs (4) :◦ CRC in Coastal Resource Management

◦ CRC in Ecologically Sustainable Shellfish Aquaculture (in process)

◦ BC RIC Tourism and Sustainable Rural Development

◦ BC RIC Aboriginal Early Childhood Development (in process)

Endowment for BC RICs = $3.75million

CRC Funding = $200,000/year

External Research Grants = $450,000+*

Total equipment & buildings since 2001 = $10.6million*

* As of January 2009

19

Student Research Scholarships = $88,000

Student Research Salaries = $210,000+

Number of students employed in research projects = 50+

20

Status Quo Funding Required

Salary increments $ 1,200,000 Tuition target realignment 400,000 Physical plant utilities 125,000 08/09 budget reductions not realized 200,000 Scholarship program incremental increase 37,000 Benefit Premium Increases 300,000 Interest Rate Target Write-down 120,000

2,382,000

Recurring Activities funded with Non-Recurring Funds $ 910,000

Non-recurring Activities for 2009-2010 minimum $ 761,000

21

Thousands of Dollars Strategy

Fund Projected Shortfall

◦ $2.4 m Fund Recurring & Non-recurring

Activities $ 1.7M

Projected Sources :

◦ Increasing revenues

◦ Decreasing expenditures

◦ Increase Provincial Funding

Integrate budget plan with strategy

22

0

500

1,000

1,500

2,000

2,500

Expenditure

Reductions

Increased

Revenue

Investment

Thousands

Aligning base budget to core activities

Base budget replaced non-recurring funding for recurring activities

Base budget to support regulatory or legislative requirements

Avoiding Layoffs (Investment)

Aligning investments to support student retention and enrolment growth.

23

Strategies

Enrolment Management

Review of various fees

Section fill rate review process

Increasing fundraising

Program Review

New revenue streams

24

Confirmation of government funding (April/May)

Finalize budget package for approval

Approval from the Board (May)

25

Discussion

26