BRANDON UNIVERSITY2013 – 2014 Budget Master Slides

May 2013

The Timing of Our

Information SessionsWe are slightly later this year in coming to you with information on the budget. Our reasoning here was two-fold:

1. There has been speculation for some months that the government would deal with its own fiscal difficulties by not meeting its 3rd year commitment to a 5 percent increase to our base budget; and

2. Our decision-making around the budget would be significantly impacted by the valuation of our pension issues with respect to our unfunded liability.

We now have information with respect to both of these variables and have adjusted the budget consistent with this information that we are sharing with you today.

Our Initial Planning Process

1. Assumed a third year 5 percent increase in operating grant from the government plus CPI tuition; and

2. Took an approach based on the past year’s experience and considered the annual pension valuation.

Our Planning Approach is Consistent with BUILD

1. As per our BUILD University plan, our primary focus has been on student success. In addition to new positions created in student success areas over the past two years, we have focused on increasing international student recruitment and on Aboriginal student success in this year’s budget.

2. We have also approved the renewal of faculty positions in light of recent retirements and resignations.

3. We have stabilized the leadership in the University by filling administrative roles that have been operating for some time with Acting leadership.

4. We are attempting to reduce the extent to which we are balancing the budget through the use of carry-forward and surplus. We are only partially successful in achieving this goal in this budget.

Academic Renewal

The following faculty positions were approved for filling in 2013:

• Faculty of Arts− 5 tenure track positions

• Faculty of Science− 2 tenure track positions− 1 two-year term position− 1 one-year term position

•Faculty of Health Studies− 5 tenure track positions− 4 Instructional Associate positions

Non-Academic Staff

The following positions were approved for filling in 2013:

• Administration and Finance− 4th Class Power Engineer (Electrician) - completed

• Healthy Living Centre− Customer Service Assistant – in progress− Building Service Worker - completed

Leadership Renewal

• Dean of Science – search complete

• Dean of Education – in progress

• University Librarian – in progress

• Associate Vice-President (Student Services and Enrolment Management) and University Registrar – in progress

Leadership Renewal

• Director, Indigenous Peoples’ Centre and Aboriginal Initiatives – search complete

• Director, International Activities – in progress

• Vice-President (Academic & Provost) – search complete

COPSE Funding Approval

• Master of Science (Environmental and Life Sciences)− $250,000/year

Three Year Plan (Previous)2011-12 2012-13 2013-14

Annual cost increase $5.544 million $1.867 million $1.0 million

Surplus previously used 2.1 1.7

Previous temporary adjustment 0.9 2.3

Total requirement 5.544 4.867 5.0

Grants and fees 1.631 1.459 1.8

Surplus used 2.124 1.686 0.6

Budget reduction (P & T) 1.789 1.722 2.6

% reduction 4.0% 3.8% 5.3%

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 -

5,000,000

10,000,000

15,000,000

20,000,000

25,000,000

30,000,000

35,000,000

40,000,000

45,000,000

Total Brandon University Operating Revenues

83% increase in 14 years

$40,591,355

$22,392,115

Campus Manitoba0%

Arts27%

Education17%

Science27%

Health Studies18%

Music6%

Visa premium5%

Tuition Revenue 2011-12$6,564,362

2003 2004 2005 2006 2007 2008 2009 2010 2011 20120.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

90.0%

Tuition and Provincial Grant as % of Operating Revenue

Tuition

Grant

81.0%

16.4%

Canada BC Alberta Sask Man Ont Que NB NS PEI NL0

1000

2000

3000

4000

5000

6000

7000

8000

Average Undergraduate Tuition for Full Time Students by ProvinceSource: Statistics Canada

2009/10 2010/11

2011/12

2008 2009 2010 2011 20120

5,000,000

10,000,000

15,000,000

20,000,000

25,000,000

30,000,000

35,000,000

40,000,000

Annual Provincial Grant RevenuesCompared to Annual Salaries & Benefits Expenditures

Provincial GrantSalaries and benefits

2011-12 Salaries and benefits were 110% of the Provincial Grant.

$36,498,363

$33,138,900

Academic Teaching Academic Support Administration & Other0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

Operating Budget Expenditures

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2004 2005 2006 2007 2008 2009 2010 2011 20120

50

100

150

200

250

FTE Positions

Faculties/Schools Student Services/Registrar/Library

Administration

62.9% of employees are in the Faculties/Schools

Nov 1/99 Nov 1/01 Nov 1/03 Nov 1/05 Nov 1/07 Nov 1/09 Nov 1/11 Nov 1/120

500

1000

1500

2000

2500

3000

3500

4000

Student Head Count (All Students)

+36% in 7 years (932 students)

-17% in 7 years (611 students)

Nov 1/99 Nov 1/01 Nov 1/03 Nov 1/05 Nov 1/07 Nov 1/09 Nov 1/11 Nov 1/120%

10%

20%

30%

40%

50%

60%

70%

80%Student Head Count - Female/Male Students

Female

Male

Nov 1/99 Nov 1/01 Nov 1/03 Nov 1/05 Nov 1/07 Nov 1/09 Nov 1/11 Nov 1/120%

10%

20%

30%

40%

50%

60%

70%

80%Student Head Count - Full Time/Part Time

Full Time

Part Time

98-99

99-00

00-01

01-02

02-03

03-04

04-05

05-06

06-07

07-08

08-09

09-10

10-11

11-12

12-13

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

2500.00

2600.00

2700.00

2800.00

2900.00

3000.00

3100.00

3200.00

Credit Hours (All Students) & Tuition Fees

Credit Hours

Tuition Fees

49,757 ch

69,270 ch +39% in 7 yrs (+19,513 ch)

57,892 ch -16% in 7yrs (-11,379 ch)

Arts Science Education Music Health Studies0

5000

10000

15000

20000

25000

30000

Credit Hours By Faculty/School for Selected Years from 98/99 to 12/13

Nov 1/99

Nov 1/01

Nov 1/03

Nov 1/05

Nov 1/07

Nov 1/09

Nov 1/11

Nov 1/12

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

(4,000,000)

(2,000,000)

-

2,000,000

4,000,000

6,000,000

8,000,000

10,000,000

12,000,000

14,000,000

Yearend Fund Balances

Capital fund

Research and Special Purpose

Unapproriated

Appropriated

Research and SP $5.0 MCapital - Carry Forward 2.4Unappropriated 1.6

Total $9.0 M

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

(500,000)

-

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

Unappropriated

Operating departments

Ancillary Services

Operating Budget Carryforward

Beginning in 2010 carryforwardhas been used to balance the

budget.

Pension Plan

• Unfunded liability special payment− Est $3.0 million ($3.783 million in 2012)

• Current service costs− Est $3.1 million ($3.294 million in 2012)

• Estimated saving $1 million

• Discount interest rates and investment returns helped

• Annual valuations required

Provincial Budget

• Operating grant increases− 5% per year for three years promised− 2.5% for 2013-14 (year three)− Lost revenue $858,900

• Tuition Fees− Max increase of CPI (Consumer Price Index)− 2013-14 is 1.6% ($5 per course)

Balancing the Budget

• Cost increases total $3.5 million− Includes $1 million pension payment decrease

• Provincial grant and fees covers 25% of cost increase

• Salary and benefit reductions save 18%

• Non-personnel cost reductions save 11%

• Revenue increases cover 6%

• Surplus funds cover the last 40%

Next Steps

• Community input

• Pension valuation

• Board Budget Committee review and recommendations

• Board budget workshop

• Board of Governors approval in May

For More Information…

Visit the Vice-President (Administration & Finance) site on the web and click on BU Budgets

Questions?