University of New Brunswick

1
University of New Brunswick

• Presentation/Discussion with
• Fredericton Campus Student Union Council
• March 13, 2007

2
Agenda

• UNB Financial Context
• 2007-08 Budget Planning
• Campus Priorities and Focus
• Questions

3
UNB 2007-08 Budget PlanningThe Context

• Rapidly changing landscape Post Secondary
  Review
• Revenue pressures
• Cost pressures
• Structural financial challenges
• Strategic directions, integrated planning and
  budgeting

4
UNB Budget Planning

• Revenue Pressures
• Under funded compared to peers and aspirations
• Funding ability/priority of Province
• Traditional market enrolment outlook
• Tight tuition fee market lt 5

5
2006-07 Budgeted Operating Revenue156.4 million
6
University of New Brunswick PROVINCIAL OPERATING
GRANT CHANGE
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Province of New BrunswickProjected Enrolment for
Grade 122001-2025
Source Policy and Planning, Department of
Education, Province of New Brunswick, December
2006
8
UNBFTE Student Enrolment
9
Tuition FeesMaritime Universities 2006-07
Based on Arts Program
Source Association of Atlantic Universities
10
Canadian Average Tuition Feesfor Undergraduate
Arts Program
Source Statistics Canada, The Daily, Sept 1,
2006

• NOTES
• Tuition fees shown are for an arts program only.
  Some institutions charge higher fees for other
  undergraduate degree programs (UNB currently
  charges the same for all undergraduate programs
  except for Engineering and Law).
• Tuition fees do not include (a) any additional
  compulsory fees for athletics, health services,
  student associations, or other purposes, or (b)
  supplementary fees paid by international students.

11
University of New Brunswick Tuition Fee Changes
for 2006-07 and 5 Year History
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UNB Budget Planning

• Cost Pressures
• Costs rising faster than revenues
• Cost structure is relative fixed and inflexible
• Aging infrastructure
• Need for investments to be competitive

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University Cost Inflation
Source Council of Ontario Universities, 2006.
Commonfund, HEPI
14
UNB Budgeted Operating Expenses2006-07(excluding
ancillaries and contributions to Capital)
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Infrastructure RenewalUNB Figures and
ContextAverage Age of Buildings
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Infrastructure RenewalUNB Figures and
ContextFacilities Condition Index (FCI)
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UNB Fredericton CampusInfrastructure Renewal
Expenditure Budgets(millions)
Pro-forma January 23, 2007
8.1
6.3
Minimum Annual Spending to Sustain Overall
Facilities Condition 6.3M
Annual Spending to Improve Overall Facilities
Condition over time 8.1M
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UNBOperating Budget Planning 2007-08
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UNBOperating Budget Planning 2007-08Overview
As of January 23, 2007
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University of New BrunswickFinancial Imperatives
UNB/Partners/Stakeholders

• Combination

• Revenue initiatives
• Expense initiatives
• Recalibration to a new lower level
• Rebalancing cost structures
• Investments to strengthen
• Financial Environment

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UNB 2007-08 Plan and Budget Overview
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UNBOperating Budget Planning 2007-08Overview
As of January 23, 2007
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UNB Operating Budget PlanningOverview of Expense
Management Cost Reduction Program 2007-08

• Fredericton Campus Overall reduction planned
  2.2 million _at_1.75
• Attrition reduction in faculty and staff
  positions main budget tool
• Non-salary budgets frozen except for
  scholarships, library and utilities
• Flex funds designated for strategic priorities
• Saint John Campus Overall reduction planned
  2.1 million _at_ 3.0
• of faculty and staff positions reduced - TBD
• Flex funds restricted
• Infrastructure transfer reduced by 600 K

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UNBOptions to Address Remaining 2007-08 Budget
Shortfall of 2.6 million

• Impact of Provincial Operating Grant
• 1 875 K
• Additional grant requirement 3
• Total grant increase would need to be _at_6
• Tuition Fee Increase
• 1 550 K
• Additional tuition fee requirement 4.8
• Total tuition fee increase would need to be _at_9.5
• Student Enrolment
• 1 change in enrolment 550 K or 105 students
• Additional of students 500 students, _at_ 5
• Total change in of students 109, instead of
  (391)

25
University of New BrunswickIntegrated Planning
and Budgeting Model
Performance Measurement Reporting
Forecasting Budgeting
Strategic Planning
Academic, Research and Operational Planning
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STUDENTS INVOLVED IN BUDGET PROCESS

• Fredericton Campus Budget Management Committee
• Jeff Strong, Undergraduate Representative
• Colin Curry, Graduate Student Representative
• University-wide Budget Management Committee
• Jessica Stutt, Undergrad Student Rep (UNBF)
• Fern Paul, Graduate Student Rep
• Hans Klohn, Undergraduate Student Rep (UNBSJ)
• Finance Committee
• Jessica Stutt, Undergraduate Student
  Representative
• Board of Governors
• Jessica Stutt, Student Union President
• Susan Barry, Student Representative Council, SJ