2012-13 Budget May 2012 for Pre-Senate

7/31/2019 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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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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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.

2012-13 Budget May 2012 for Pre-Senate

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