AGENDA ITEM NO: 8.1
UNIVERSITY COUNCIL
PLANNING AND PRIORITIES COMMITTEE
FOR INFORMATION ONLY
PRESENTED BY:
Jay Kalra, Chair, Planning and Priorities Committee
DATE OF MEETING:
March 18, 2010
SUBJECT:
Update to the Multi-Year Operating Budget Framework
2008/09 – 2011/12
COUNCIL ACTION:
For information only
CONTEXT AND BACKGROUND:
The Multi-Year Operating Budget Framework 2008/09 – 2011/12 is a key financial
document, which links resources to planning initiatives through the second planning
cycle. Updating of the framework was deferred in 2009 due to the general financial
instability caused by the worldwide economic crisis, particularly with respect to the
university persons. In its place, a detailed analysis of the university’s finances under a
number of financial risk scenarios was prepared to inform the presentation of the
university’s 2009/10 Operating Budget to the Board of Governors. With the increased
financial stability in 2010, the parameters of the framework were revised, and the
Planning and Priorities Committee considered the update to the framework in relation to
the committee’s advisory role regarding operating and capital budgetary matters.
The committee’s ad hoc finance subcommittee discussed the Multi-Year Operating
Budget Framework and university tuition in late January. Following, the Planning and
Priorities Committee reviewed the update to the Multi-Year Operating Budget
Framework at its February 3, 2010, meeting and subsequently provided its advice on the
framework to the President prior to Board of Governors consideration of approval of the
framework on March 12, 2010.
DISCUSSION SUMMARY:
The Multi-Year Operating Budget Framework for the 2008/09 – 2011/12 planning cycle
is a projection of the rate of growth of the University’s operating revenues and
expenditures. In its consideration of the proposed update to the framework, the Planning
and Priorities Committee focused on the relationship of the university’s operating budget
in relation to the objectives and academic priorities of the Second Integrated Plan. Due
to declining provincial revenue, the key budgetary assumption, which remains unknown
at this time, is the provincial grant to the university. Other key budgetary assumptions
upon which the framework is based include tuition revenue, investment income, salaries
and benefits, and research activity.
The Planning and Priorities Committee supports the update to the Multi-Year Operating
Budget Framework for the 2008/09 – 2011/12 planning cycle as a realistic projection of
the university’s financial situation based upon the university’s request to the province in
its 2010/11 Operations Forecast, and with the provincial grant remaining an unknown
variable.
ATTACHMENTS:
Memorandum to President MacKinnon on the Update to the Multi-Year Operating
Budget Framework 2008/09 – 2011/12