Budget Context for 2012-13
Townhall
March 7, 2012
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Public Policy Environment
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Provincial Throne Speech
 Add 60,000 new PSE spaces by 2015-16:
= 35,000 undergraduate and 6,000 graduate university
spaces
 Reduce the average tuition by $1,600 for full-time
Ontario students in first-entry programs from families
earning less than $160,000 per year where students
are within 4 years of graduating from secondary
schools (estimated 13,000 Ryerson students or $20M)
 Three new undergraduate campuses
 Balance provincial budget by 2017-18
 Spending not part of Government's current plan to
come from savings realized elsewhere
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Drummond Report – Fiscal Picture
Slow economic growth
• Economy predicted to grow by 2% annually
Ballooning Provincial deficit
• Current $16B provincial deficit will grow to $30B by
2017-18 without severe restraint
Restructuring required
• Government services must be restructured to find
efficiencies and still delivered required services
Choices need to be made
• Be strategic, don’t make across-the-board cuts
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Drummond Report – PSE
Contain Government Expenses
 Grants: Increase 1.5% per year, but enrolment is
expected to increase by 1.7% per year.
 Tuition fee: Increase by 5% annually.
Institutional Cost Efficiencies
 Single PSE pension fund administrator
 Enhance space utilization and year-round use
 Compress four-year degrees into three years by
continuing through the summer (8-term degrees)
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Drummond Report – PSE
Rewarding quality
 Recognize top-performing teachers and
researchers with workload and rewards
 Measure learning outcomes and value added
through education
 Tie funding to outcome quality indicators
Differentiation (to improve quality & financial sustainability)
 Multi-year mandate agreements
 Strategic division of roles of college and
university systems
 Enforceable credit recognition system
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MTCU’s “3 Cubed” Policy Discussion
 Three-year undergraduate degrees
• Promote 6-term bachelors degrees
(Drummond
recommended fast-tracking 8-term bachelors degrees over three year)
 Three full semesters per year
• Promote better use of physical facilities by having full
use in Spring/Summer term
 Three in five courses online courses
• Enable students to take up to 3 courses/semester
online, guarantee credits recognized by all institutions
 MTCU expects continuing productivity increases
for 3 years
Source: CBC, Ontario universities urged to move more classes online, February 23, 2012.
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University Operating Grant + Net Fees
per FTE student by Province (2008-09)
Newfoundland
Alberta
Saskatchewan
PEI
British Columbia
Canadian Avg (excl. Ont)
New Brunswick
Manitoba
Nova Scotia
Quebec
Ontario
$0
$5,000
$10,000
$15,000
$20,000
$25,000
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Key Government Announcements
 Provincial Budget (March 2012)
 Strategic Mandate Agreements (?)
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Ryerson’s Budget
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Operating Revenues and Expenditures
Revenues
Expenditures
Grants + Fees =
98%
Salaries +
Benefits = 80%
Fees
46%
Other
Income
2%
Nonsalary
16%
Benefits
13%
Grants
52%
Student
Aid 5%
Salaries
67%
Source: 2011-12 Ryerson University Budget, Schedule 3
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2012-13 Budget:
Principles and Considerations
 Budget will promote the 5 Academic Plan
priorities approved by Senate
 Principles guiding budget development:
1.
2.
3.
4.
Fairness and transparency
Priority on students
Forward looking
Flexibility to respond to changing fiscal
circumstances
 Balanced operating budget
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Ryerson is Well Positioned
 Strong demand for Ryerson programs
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Strong Demand for Ryerson’s Programs
in Fall 2012
First Choice Secondary
School Applications
 % increase:
All Choices Secondary
School Applications
 % increase:
Ryerson = +7.4%
System = +2.0%
Ryerson = +6.7%
System = +2.4%
 Absolute increase:
 Absolute increase:
Ryerson #1 = +645
System = +1,747
 Total applications:
Ryerson #2
Ryerson #1 = +2,554
System = +9,339
 Total applications:
Ryerson #2
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Change in Total Applications from
Secondary School, 2012 vs 2011
Ryerson University
University of Toronto
Carleton University
University of Guelph - Complex
University of Ottawa
UOIT
Brock University
Lakehead University
University of Windsor
Wilfrid Laurier University
Trent University
McMaster University
University of Waterloo
Nipissing University
Algoma University
Western-Complex
OCAD University
Queen's University
Laurent-Complex
York University
-1,000
Source: OUAC
-500
0
500
1,000
1,500
2,000
2,500
3,000
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Ryerson is Well Positioned
 Strong demand for Ryerson programs
 New revenue generation ideas
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Entrepreneurial Initiatives:
Revenue Generation Ideas
 New undergraduate programs (timing critical)
 Professional masters
 Post-degree certificates and diplomas
 ESL program
 Experiential semester in digital entrepreneurship
and innovation
 International student agreements
 Others?
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Ryerson is Well Positioned
 Strong demand for Ryerson programs
 New revenue generation ideas
 Pension issues addressed
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Pension Surplus/Deficit Without Change
in Contribution Rate
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Pension Surplus/Deficit With Change in
Contribution Rate
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Ryerson is Well Positioned
 Strong demand for Ryerson programs
 New revenue generation ideas
 Pension issues addressed
 No operating deficit
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Budget Parameters for 2012-13
Operating Revenues
Operating Expenditures
Base Budget reduction
+2.1%
+5.1%
-3.0%
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Budget Parameters for 2012-13
Operating Revenue +2.1%
Grants:
0%
Fees:
5%
Other Income: 5%
Operating Expenditures +5.1%
Salaries – Cost of Living:
1.5%
Salaries – Step/Merit/PTR: 1.8%
Pension:
1.5% + 1.5%
Benefits:
8%
Non-salary:
4%
Previous year’s savings: -1%
Strategic reallocations:
1%
Planned Base Budget Reduction
= 3%
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University Budget Development:
Next Steps
 Revenue and public policy
• Provincial budget (March)
 Community consultations
• Townhalls
• Stakeholder consultations
• Faculty, school and department budget development
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