Download - 2012-13 Budget May 2012 for Pre-Senate
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Queens University
Operating Budget20122013
May 22, 2012
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Context: 2012 Provincial Budget
Government still committed to university enrolment growth
40,000 by 20172018 (was 20152016)
6,500 additional undergraduate students, 600 graduate
students in 20122013
No new capital, no additional funds for deferred maintenance
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Context: 2012 Provincial Budget (contd)
Tuition Framework retained for 20122013
Ontario Tuition Grant increasing by 5 percent in 20122013
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Balanced Budget in 20122013
See Budget Report, Page 5
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The 20122013 Balancing Act
No sharing of incremental grant and tuition revenue
Elimination of across-the-board budget cut
Additional revenue from residences
Savings on utilities
Forward contract for natural gas
Revenue from co-generation
Recovery of ongoing funding, and replacement by one-timefunding, where programs are coming to an end
Reduced income from pooled investment fund
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The 20122013 Balancing Act: Pensions
Preliminary August 31, 2011 valuation
Going-concern deficit: $151.6M
Solvency deficit: $332.3M
Annual special solvency payments begin in 2015 (full-year
annual cost currently estimated at $25M)
Stage 1 solvency relief achieved
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The 20122013 Balancing Act: Pensions
Plan changes meet requirements for Stage 2 solvency relief
Reduction in pension special payments with plan changes(approximately $7M)
Pension Benefit Guarantee Fund payment of $2.3M required
by Ontario Ministry of Finance
up from $350K in 20112012
originally budgeted $750K for 20122013
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The 20122013 Balancing Act: Compensation
Budget reflects
Actual cost of settlements
Estimated cost of agreements not yet reached
5 percent increase in benefit costs (almost entirely higher
pension costs)
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The 20122013 Balancing Act: Students
Budget reflects
Limited enrolment growth in line with Senate plan
Full funding from government for projected incremental
undergraduate growth
No additional funding assumed for graduate growth
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The 20122013 Balancing Act: Students
Budget reflects
Domestic tuition fee increases within framework
Modest international tuition fee increases (broadly in line
with domestic fee increases)
Increased domestic and international fee revenue from
higher fees and enrolment growth
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The 20122013 Balancing Act: Students
Budget reflects
Continued requirement to set aside 10 percent of
additional domestic tuition fee revenue
No change in total student financial support
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Student Financial Support
Total of $29.45M
Undergraduate support: $16.08M
Set-aside funds: $11.42M
Internal funds: $4.66M
Graduate support of $13.37M
Internal funds now covering new costs from our student
access guarantees because of government program cuts
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A True Balanced Budget?
Net Budget Deficit: $10.4M
$3.6M draw down of reserve, applied to one-time
expenditures
$6.7M draw down of unit budgets
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Transfers from Operating to Capital
See Budget Report, Page 16
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Transfers from Operating to Capital
Transfer increased by $4.13M
20112012: $12.43M
2012
2013: $16.56M Increase results from
Elimination of deferral: $2.56M
Higher expense: $1.68M
TRAQ Goodes Hall
Boiler replacement
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20122013 Operating Budget Allocations
Academic
(Faculties,
Schools &
Library)61%
P & VPs
8%
Student
Assistance
7%
Transfer to
Capital
4%
Shared
Services
20%
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Consolidated Budget
Illustration of Approximate Percentage Breakdown of Expenditures by Fund.
The Board approves the Operating Budget
52.7%
10.1%
8.8%
4.8%
2.5%
21.0%
Operating
Ancillary
Trust
Capital
Cons Entities
Research
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Beyond 20122013
20122013 budget presented as a one-year plan
New budget model under development for 20132014
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Beyond 20122013
Pension Plan solvency shortfall payments to commence in
20152016
Government plans for extended teacher education program
IT infrastructure investments
Deferred maintenance
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Beyond 20122013
Cumulative deficit (May 1, 2012) projected to be $19.8M
Starting 20132014, Universitys Operating Grant falling by
$750 for each newly admitted international student
(except PhDs)
$75 for every enrolled international students (exceptPhDs)
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Beyond 20122013
2013-14 2014-15 2015-16
$ $ $
Revenue (1) 9.1 18.5 29.6
Expenditures (2) 12.3 24.6 38.2
Net Gain/(Loss) (3.2) (6.1) (8.6)
Pension Solvency Payment - - 16.4
Net Gain/(Loss) (3.2) (6.1) (25.0)
(1)Includes increasing tuition and grant revenues due to enrolment and fee changes
Also includes decreases in grant related to "Policy Levers" in Provincial Government Budget
(2)Includes increases in salary and benefits largely based on collective agreement terms,
increased utilties and building operating costs due to inflation or the addition of new buildings,
funding for Innovation Park and TRAQ implementation &sustainment, additional student assistance
Queen's University
2013-14 to 2015-16 Projected Increases in Major Revenues and Expenses
over 2012-13 ($ Millions)
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Research
Sponsors Province ofOntario DonorsOther Sourcesof Revenue
Faculties and Schools
University Fund Charge
Shared Services Charge
Student Support Charge
Students
Unrestricted
GiftsGovernmentGrants Tuition andOther Fees Other Revenue*IndirectCosts of
Research
Support
Direct
Costs of
Research
Support
University Fund (UF)
Student
SupportShared
Services
Endowment
Income and
Expendable
Gifts
+/- UF Supplement
* Other Revenue includes net income from ancillary operations, investment income.