Budget Context for Academic Planning

1
Budget Context for Academic Planning

• Report to Senate
• May 24, 2007
• Gary Brewer, VP Finance Administration

2
Outline

• 2006-07 to 2008-09 Budget Plan Review
• Government Funding Update
• Federal Budget, March 2007
• Provincial Budget, March 2007
• MTCU Funding - 2006-07 Year-End
• Enrolment Update
• Undergraduate Domestic
• Undergraduate International
• Graduate
• Summary of Budget Plan Changes
• Updated Budget Plan 2007-08 to 2009-10

3
Budget Plan Summary - 2006-07 to 2008-09
(approved June/06)
1.75
2.5
BASE CUT - Faculty/Libraries
1.75
2.5
- Administrative
4
Budget Plan Update (Oct/06) -Summary of Key
Assumptions

• Enrolment Growth (Graduate and Undergraduate
  Accessibility Funding)
• UG Enrolments on track - slightly above target
• Budget Assumed 2M growth in UG Accessibility
  Fund - seemed reasonable even with possible
  discounting
• Meeting Graduate Growth targets remained a
  challenge. Potential impact on funding not yet
  determined

5
Budget Plan Update (Oct/06) -Summary of Key
Assumptions

• Quality Improvement Grant Funding
• Budget assumed additional 7 - 9 M in funding
• York would meet its budget target assuming we
  received our traditional share of the unallocated
  funds
• Government might target some of these funds to
  specific activities, which may create funding
  pressures or reduce our flexibility
• Additional capital investment
• Graduate Growth Plan assumed 50M
• Initial indications suggested we would receive
  25M - 35M if graduate targets achieved

6
2007 Federal Budget (March 2007)

• 2007 Federal budget earmarked an increase of 800
  M per year for postsecondary education to be
  delivered through the Canada Social Transfer
  (CST)
• Funding to begin in 2008-09
• Federal and Provincial governments to consult on
  an accountability framework for this funding
  through 2007-08
• The budget also pledged to release soon a new and
  comprehensive Science and Technology strategy.
  Other investments included an additional
• 15 M indirect costs of university research
• 510 M for CFI
• 2 M over two years for an international
  education marketing campaign
• 85 M increase to Research Granting Councils

7
2007 Provincial Budget (March 2007)

• The 2007 Provincial Budget re-affirmed the
  Reaching Higher that results in a 6.2 billion
  cumulative investment by 2009-10
• Confirmed an operating grant increase of 196 M
  for 2007-08 to both colleges and universities (a
  5 increase)
• Released 390 M in one-time funding from the
  Postsecondary Education Infrastructure Trust
  announced in the 2006 Federal Budget
• Included 210 M for universities flowed in the
  2006-07 fiscal year
• York received 22.6 M

8
University Share of Reaching Higher

• Similar to last year, MTCU has provided no
  specific details on the sector specific
  allocations
• Details are not expected until at least
  mid-summer possibly longer due to the election
  in October 2007
• Expected university funding increase is
  approximately 120 M (4.1)
• 100 M earmarked for graduate expansion
• 20 M for all other priorities e.g.
  undergraduate enrolment growth, quality funding,
  medical and clinical improvements
• Budget made no commitments on Ontarios share of
  the additional 800 M in Canadian Social Transfer
  (CST) funding earmarked for PSE

9
MTCU 2006-07 Year-End Undergraduate
Accessibility Fund

• Total sector-wide enrolment increase was 6,900
  FTEs for a call of 127.0 M in Undergraduate
  Accessibility Funding
• MTCU provided a total 102.4M for a total
  discount of 19.4
• York discount - 3.0M
• Expectation that the level of discounting will
  increase in 2007-08

10
MTCU 2006-07 Year-End Graduate Accessibility
Fund

• Total increase of 2,300 graduate FTE
• 1,100 Masters FTE
• 1,200 PhD FTE
• Total funding required - 46.9 M
• MTCU had 70 M allocated for this purpose
• Residual funding of 24.1M was allocated towards
  32.5M distributed for graduate scholarship
  endowments
• York received 3.2 M for Graduate Fellowships (to
  be endowed)

11
MTCU 2006-07 Year-End Quality Funding

• MTCU allocated 215.2 M in quality funding
• York received 14.8 M or 6.9
• Quality Funding was allocated in three general
  categories
• General Quality - 113.8 M or 53 of total
• Unfunded BIUs - 73.0 M or 34 of total
• Targeted Quality Funding - 28.4 M or 13 of
  total
• York received
• General Quality - 12.4 M or 11 share
• Unfunded BIUs - 0.4 M or 0.6 share
• Targeted Quality - 1.9 M or 6.7 share

12
MTCU 2006-07 Year-End Targeted Quality Funding

• Targeted Quality Funding was allocated over a
  small number of programs across a wide variety of
  programs
• 5.0M for business education
• 8.2M for francophone initiatives
• 2.0M to increase the differentiation grants at
  Trent and OCAD
• 1.0M for the University of Guelph-Humber
• 3.0M to UofT for OISE Dental Education
• 5.0M for UOIT
• 4.2M to other agencies (COU)

13
Federal Postsecondary Infrastructure Trust

• Yorks Share
• 22.6M (received in 2006/07 one time only s)
• Allocation Plan
• Osgoode Building Renovation/Expansion 15.0M
• Research Infrastructure (including FMRI) 5.0M
• Bethune/Petrie Renovations 2.0M
• Other Projects 0.6M
• 22.6M

14
Three-Key Budget Risks

• Undergraduate Growth
• MTCU has indicated that it will not provide an
  additional funding for undergraduate growth in
  2007-08 despite increasing enrolments at a number
  of institutions
• Could increase the level of discounting for next
  year
• Softening in undergraduate International
  enrolments
• Graduate Growth
• Funding is provided only for enrolment growth
  actually achieved
• Quality Funding
• Significant amounts of funding targeted to
  specific projects with additional costs and/or
  without a process
• Announcements have been arriving later each year

15
Undergraduate Domestic Enrolment Plan
16
Undergraduate International Enrolment Plan
17
Funding for Graduate Expansion

• Yorks 2007-08 negotiated graduate targets are
• 2,819 masters spaces
• 990 doctoral spaces
• The demand for domestic masters and doctoral
  programs is weaker than expected
• This coupled with lower than expected graduate
  intakes last year will mean that we will not be
  able to meet the MTCU approved targets for
  2007-08
• After a review of application data, graduate
  enrolment projection was revised. The plan has
• lower eligible masters and doctoral enrolments
• same ineligible enrolment plan i.e. visa and
  gfu-max students

18
Total Eligible Masters Enrolment Projections
MTCU Plan vs Revised Projections
19
Total Eligible Doctoral Enrolment Projections
MTCU Plan vs Revised Projections
20
Total Graduate Enrolments 2006 Budget Plan vs
Projected Totals
21
Capital Funding Impact Revised Graduate Targets
22
Summary of Budget Plan Changes

• Revenue
• Graduate Enrolments
• Quality Improvement Funding
• Discounted Undergraduate Funding
• Softening in Undergraduate International
  enrolments
• Expenditures
• Salary/Benefit Costs

23
Budget Plan Changes -Revenue Projections
Total domestic enrolment close to target and both
tuition and grant revenue essentially on budget.
Pressures arise from discounting on future UG
growth grant and softening in UG Intl enrolments.
24
Budget Plan Changes -Expense Projections
25
Summary of Budget Plan Changes and Budget Gap
26
2007-2010 Budget Plan -Proposed Budget Measures
27
2007-2010 Budget Plan -Budget Plan Summary
28
2007-2010 Budget Plan -Budget Plan Summary