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By Patty Pitts
On March 30, UVic’s Board of Governors approved a balanced 2010/11 budget framework that, in spite of increasingly constrained resources, funds new graduate and undergraduate programs, increases student financial aid and expands student support services.
The 2010/11 budget framework is based on an operating budget of over $300 million supported primarily through the provincial government operating grant, student fees and other funding sources. The framework provides for an increase of 126 full-time equivalent graduate student positions.
As in previous years, the framework contains a 2-per-cent increase in tuition fees. This brings annual domestic arts and science undergraduate tuition to $4,766 from $4,673. Domestic graduate annual tuition rises to $4,950 from $4,853 effective May 1, 2010. This places UVic tuition in the mid-range of Canadian universities.
The framework provides for an additional $800,000 in student financial aid, $100,000 to the library to assist with the cost of its collections and services for new programs, and almost $500,000 to student services and support areas to assist with initiatives such as academic support in writing and math, student recruitment, disability accommodation and a new welcome centre. The improved financial performance of the University of Victoria Foundation and support from UVic will allow the foundation to make distributions from all its endowments.
UVic estimates its total revenue for 2010/11 to be close to $500 million, including continued strong funding from research granting agencies, revenue from ancillary operations, and capital funds.
Q&A
Vice-President Academic and Provost Jamie Cassels and Vice-President Finance and Operations Gayle Gorrill discuss the process leading up to the framework and the role this year’s framework plays in future planning.
Many other universities are having to cut programming and positions, yet there are no cuts specified in UVic’s budget framework. How has UVic managed to maintain the status quo?
Cassels: We have used the integrated planning process as a way of identifying priorities and also upcoming cost pressures so as to minimize surprises and develop solutions to anticipated challenges. As a result, we’re in fairly good shape and do not anticipate any cuts this year.
However, we do anticipate that over the next several years, any growth in resources will be very constrained. The continuing economic downturn means that UVic will face reduced endowment revenues due to lower investment returns, constrained government revenues and slower student growth and the revenue that accompanies it.
We have so far been able to maintain all of our programs and staff positions through careful allocation of the funds we do have. The deans and other administrators are also continually adjusting their programs and shifting resources to areas of highest need. There will be no layoffs due to this budget.
Over the past three years we have been withholding funding in areas where enrolment targets haven’t met expectations. Since enrolments have grown this year, we are now putting some of those resources into faculty and other budgets.
You’re going to be negotiating very soon with all of the employee groups on campus. Will this budget framework cover the costs associated with new contracts?
Gorrill: Like all public sector employers we are bargaining this year under a provincial mandate that limits public sector employee compensation to a “net zero” increase in total compensation. As a result, sectors that have settled to date have either extended current agreements for two years or included targeted compensation trade-offs to address priority issues for both parties. Accordingly, we have not included additional costs for general pay increases in the budget.
While there will not be general cost increases, we have increased the budget to reflect additional ongoing benefit commitments and increased compensation budgets to reflect merit adjustments and promotions. The estimated increase in salaries and benefits is $3.4 million.
Last year UVic, like many other universities, lost significant investment revenue due to worldwide market losses. Has that situation improved?
Gorrill: The financial performance was significantly improved compared to the prior year. While we have not recovered all of the losses from the prior year, the improved financial performance of the University of Victoria Foundation, along with some support from the university, will allow us to distribute awards from all of the endowments this year.
What will happen to student enrolment over the next few years?
Cassels: Enrolments have grown strongly over the past several years. New provincial funding has increased access enormously and allowed us to build dozens of new academic programs. But the era of funding for growing enrolments further is now drawing to a close.
The slower pace of growth over the next several years provides us with an opportunity to consolidate some of the gains we have made over the past few years in terms of program expansion and focus on enhancing those programs and support services.
We still, however, intend to attract new students — especially to the relatively new program areas that are yet not fully subscribed. This will ensure that new students can take advantage of those offerings and through proper enrolments ensure that the programs are financially sustainable. And, as always, the deans will maintain the process of reallocating resources gradually to areas of greatest need and interest.
We anticipate that over the next five years, future undergraduate growth will be highly focused on programs that are supported specifically by government funding, special fees or other external sources. Even at full enrolment, student recruitment will remain a priority. As a destination university, our goal will be to continue to attract the very best students from across the country and internationally.
In 2010/11 we will receive the last increase in direct government funding for graduate students and indeed want to attract additional graduate students beyond this number. These students will support an increase in both research activity and the quality of graduate and undergraduate learning experience through both the addition of new graduate courses and the value that graduate students bring to the classrooms as teaching assistants.
With tighter funding, will UVic be able to launch any new programs this year?
Cassels: This year’s framework has allocated over $1 million to build support and educational and research capacity for new programs across the university’s faculties. They range from new undergraduate and graduate programs in public health and a master’s program in global business to a new creativity program in fine arts. Several more are under consideration to come on-stream in the future. All build on UVic’s strategic goals to integrate education and research, and promote experiential learning, interdisciplinarity and internationalization.
There’s been a huge amount of construction over the past few years. Are there any capital projects planned for the coming year?
Gorrill: With the completion of the First Peoples House, we have now finished all of the capital projects contained within UVic’s most aggressive capital program ever—a total of $180 million. In the upcoming year, we will complete a new residence building, and work will continue on the athletics and recreation facility, which includes the School of Exercise Science, Physical and Health Education and CanAssist, through completion of project working drawings. As well, under the federal-provincial Knowledge Infrastructure Program, renovations will occur in six of our oldest buildings. Once completed, the KIP projects will have generated 600 jobs and involved 125 different companies.
However, due to our aging campus, these projects won’t cover all of the deferred maintenance required to bring all of our buildings to the more sustainable and energy-efficient levels we would like. Funding for support of building maintenance has been reduced and this could continue into the future.
Planning will continue on the new athletics and recreation facility and we will complete the purchase of the Queenswood property. We expect that funding for capital will be very limited in the near future, meaning there will be few if any new major capital projects on campus.
Is UVic going to be able to maintain balanced budgets into the future?
Gorrill: We are committed to balancing budgets, but this will be more difficult in the future. We do expect more years of static funding from the provincial government, recognizing that many other sectors have also seen their funding reduced, and less student growth with the accompanying drop in tuition revenue. We expect to continue our ongoing success with attracting research funding to the university, but that success is a double-edged sword since expanded research also has associated costs. In order to continue with balanced budgets, while minimizing the requirement for cuts, the university will have to diversify its funding and seek out new sources that can supplement our traditional ones.
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