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 11.1 12.4 28.4 38.0 38.7 Total Contributions 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

Special Pension Payments 30 25 Payments Special 20 15 10 5 $ millions 0 -5 Fiscal Reserve to 2009-2010 -10 of New Reserve Draw on New Reserve Accumulation -15 In-year Base Payment Carry-Forward Reserve -20 Fiscal Added to Reserve -25 Base Added to Reserve -30 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 Board of Governors, April 20, 2010 11 Finance/OIRP 2010-04-09

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

Long Term Financial Planning Model 390 Income 380 Pension Pmt. Bridging 370 Acad. Resource Fund 360 Special Pension Payment Base Expenditures 350 340 330 $ millions 320 310 2.8% growth per year 300 290 280 270 260 250 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 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 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 7%* 6% • Upper years 4% 6% Other Undergraduate Programs: • First year 4.5% 6% • Upper years 4% 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 2009-10 2010-11 3-Year Year 1 Year 3 Year 4* 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