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2011-12 Budget Report

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

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2011-12 Budget Report

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  1. 2011-12 Budget Report ECC March 9, 2011

  2. 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

  3. 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

  4. 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

  5. FTE Enrolment at the University of Toronto 2000 - 2015 UTM UTSC

  6. International Enrolment as a Proportion of Total Enrolment

  7. 2011-12 New Revenue - UTM Incremental Revenue over 2010-11 Critical need to increase government support for per-student funding and student aid

  8. Academic Budgets University Fund University-wide expenses Student aid Gross revenue Net revenue to academic divisions

  9. Expense • Careful controls on spending • Base and OTO cost containments continue: • 3% base across central divisions • % varies across academic divisions

  10. 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

  11. 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

  12. 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

  13. Summary Sound Budget Strategy Avoid Return to Debt Spiral Prospects are Good But Money is Still Tight

  14. University Wide Costs $425M

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