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
• Pension challenges: like almost every other Canadian
and US public sector institution with Defined Benefit
pension plan
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
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
FTE Enrolment at the University of Toronto
2000 - 2015
22,000
A&S St George
19,000
16,000
20,466
16,773
14,780
St George other divisions
14,208
13,000
10,412
UTM
10,000
8,557
Tri-campus graduate
4,818
7,000
10,247
8,923
UTSC
4,679
4,000
00
01
02
03
04
05
06
07
08
09
10
11P
12P
13P
14P
15P
International Enrolment as a Proportion of Total Enrolment
Total Enrolment
Total International Enrolment as a % of Total Enrolment
90,000
16%
11%
80,000
14%
70,000
60,000
14%
12%
3.8%
10%
50,000
8%
40,000
6%
30,000
20,000
4%
10,000
2%
0
0%
2011-12
New
Revenue
- UTM
Incremental
Revenue
over 2010-11
Revenue category
Operating Grants
Tuition – tuition and enrolment volume
Other (endowment, investment and
application fees)
Total
2011-12
$M
4.4
14.1
0.1
18.6
Critical need to increase government support for per-student funding
and student aid
2011-12 Sources of Operating Revenue
Total = $1.688B
Divisional Income
12%
ICR
2%
Investment Income
2%
CRC
2%
Endowment
2%
Tuition Fees
40%
Provincial Grant
38%
Scholarship grants
1%
Other Income
1%
Academic Budgets
University Fund
University-wide
expenses
Gross revenue
Student aid
Net revenue
to academic
divisions
Expense
• Careful controls on spending
• Base and OTO cost containments continue:
– 3% base across central divisions
– % varies across academic divisions
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:
*steady improvement, differentiated
$122.8
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
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
Summary
Sound Budget Strategy
Avoid Return to Debt Spiral
Prospects are Good
But Money is Still Tight
University Wide Costs $425M
UW Academic
$30.9
7%
UW General
$37.8
9%
Occupancy
$95.4
23%
Student Services
$24.4
6%
IT $29.0
7%
University Mgmt
$16.1
4%
Research Admin
$13.0
3%
UT Libraries $73.2
18%
Advancement
$23.6
6%
Financial Mgmt
$7.6
HR $17.2
2%
4%
Pension $45.1
11%