Advancing the University Academic Plan

1. Advancing the University Academic Plan Report to Faculty Councils: Fall 2013 Rhonda Lenton, Provost & Vice President Academic and Gary Brewer, Vice President Finance & Administration

2. Outline • External Context • Successes • Challenges • (VPFA) York University Budget • Moving the University Academic Plan Forward • Academic and Administrative Prioritization

3. 1. External: Ontario Post-secondary Education Emphasis on differentiation, innovation & productivity

4. Growth in Student Demand for Baccalaureate Education: 2009 - 2025 David Trick, Tyndale Presentation, March 19, 2013

5. Per-student revenues compared to per-student costs Per-student costs (~4-5%) CPI inflation (2%) Per-student revenue (~1-2%) David Trick, Tyndale Presentation, March 19, 2013

6. Risks to Higher Education

7. Government Responses

8. Competitor Responses • Exploiting technology

9. 2. How Are We Doing? Numerous Successes on Priorities • Enhancing Teaching and Learning e.g., Teaching Commons, AIF • Research Intensification e.g., SRP, CRC • Strengthening Interdisciplinarity and Comprehensiveness e.g. new programs • Enriching Student Experience e.g., YGS, First Year, PRASE • Building Community and Extending Global Reach e.g., ONCAT initiatives, bridging programs • Promoting Effective Governance Academic Quality Student Success Community Engagement

10. GPA of Entering Undergraduates 2006/07 to 2012/13 Also continue to strengthen GPA: in 70-74% category over time, although not as strong in 85% - 94% last year. Source: OIRA

11. Cumulative Change in Tenure Stream Faculty Complement: 2002-03 to 2013-14 (not including Librarians) Significant complement recovery facilitated by strategic funds Source: Office of VPA&P

12. 3. Challenges We Face

13. Financial Gap Budget Presentation

14. Budget (VPFA)

15. Review of Budget Allocations – 2006/07 to 2015/16 • In order to provide additional context to the operating budget allocations • made over the past several years, a summary was prepared showing • budget allocations from the June 2004 budget to the June 2012 budget. • The summary shows the growth in revenues and costs for fiscal years • 2006/07 through 2015/16: • Total expense growth over that period is projected at $208.8 M (primarily through tuition fee increases and enrolment growth) • The single largest increase in expenses is for annual compensation increases and pension deficit special payments ($173.4 M) • The results are shown in following chart (and more detail in the Senate presentation Appendix). Office of the Vice President Finance and Administration

16. Revenue/Expense Increase – 2006/07 to 2015/16 $ millions Cumulative Total of Annual Budget Cuts: $483.2 M Office of the Vice President Finance and Administration

17. Budget Plan 2012-2016 (Approved June 2012) Office of the Vice President Finance and Administration

18. Pension Valuation –Going Concern and Solvency Deficits • Operating budget has incorporated • special pension payments • as follows: • $ 5M in 2010/11 • Increasing to $15M in 2011/12 • Increasing to $25M in 2012/13 • Increasing to $34M in 2013/14 Note: These special payment amounts are in addition to regular annual pension contributions of about $40M. Office of the Vice President Finance and Administration

19. Emerging Budget Outlook - Summary • Revenue outlook is significantly worse than June 2012 Plan: • Reduced operating grants from MTCU efficiency targets - $2.8M / $5.5M • Reduced interest income - $1 to $3M (lower projected cash balances) • Reduced revenue from fee increases - $4 to $16M (2013 gov’t announcement on fees provides 3% increases vs. 4.5% assumed in June 2012 plan) • Further revenue constraints from emerging enrolment challenges • Domestic enrolment plan reduced through planning period • Further international growth can only partially offset domestic drop • Cost changes to from the June 2012 Plan include: • Benefit cost escalation - $2 to $3M • Science/Engineering budget rebasing - $2.5M • Some offset to cost pressures by reducing projected compensation escalation and lower projected energy costs (due to success of energy mgt program and lower gas prices) Office of the Vice President Finance and Administration

20. REVENUE Changes – from June 2012 Plan Office of the Vice President Finance and Administration

21. EXPENSE Changes – from June 2012 Plan Office of the Vice President Finance and Administration

22. Budget Plan 2013-2017 – Assuming ATB Cuts (to balance) Office of the Vice President Finance and Administration

23. EXPENSE Changes – additional targeted cuts • Rather than responding to the deterioration in our financial outlook through increases to the 3.5% budget cuts already incorporated into the June 2012 Plan, an alternative plan update is being proposed. • This proposed budget plan update identifies a number of specific targeted cuts to certain administrative/central budget provisions, in order to assist in balancing the budget over the next four years. • These targeted cuts have potentially adverse consequences – and are not sustainable indefinitely. Since they cannot be continued indefinitely, they are not base cuts – and therefore the underlying structural budget issues remain. • The targeted cuts outlined below provide a temporary 4-year window to address the serious budget issues facing the University. Office of the Vice President Finance and Administration

24. Budget Plan 2013-2017 – (applying targeted expense reductions) Office of the Vice President Finance and Administration

25. Divisional Budget Summary Office of the Vice President Finance and Administration

26. 4. Implications • Challenge is how to best advance the University Academic Plan within this context • Faculties in-year deficits continue to rise - expected to average about $25 - $30m in next couple of years • Projected cumulative budget cuts between 2006/07 and 2015/16 is $483.2 million • Unsustainable

27. Immediate Next Steps • Significant curtailment of major capital projects without funding in hand • Align fundraising plan with priorities • Finalize and transition to new budget model • Identify and complete in-flight projects from PRASE, SEM and AIF that will demonstrably advance UAP

28. Moving the Plan Forward • More fundamental change is required to realize strategic vision in UAP • Will require: • Reductions in expenses • New revenue • Strategic investment • Challenge is how to best identify opportunities • Process must rely on: • evidence-based, collegial and transparent decision-making • “strategic planning modalities that promote and permit tough choices”

29. Five Year Outlook • Launch an academic and administrative prioritization initiative • Integrate AAP and PRASE as one exercise • Align all plans to optimally advance UAP and support strategic vision in SMA • Respond to Employment Engagement Survey

30. Summary of Major Initiatives

31. 5. What is Academic & Administrative Prioritization? • AAP is a structured assessment process that reviews and ranks an organization’s programs and services in order of priority according to a consistent set of criteria. • It allows an institution to: • identify strengths (what is being done well) • identify challenges • facilitate transparent and evidence-based decision-making on opportunities for new directions and opportunities for change.

32. What is included? • A program or service refers to a collection of activities that consume resources including: • academic programs • student services • administrative functions • Examples: • undergraduate programs • graduate programs • research programs • IT, Human Resources, facilities • Level of specificity to be determined e.g., degree program • discrete enough to permit real analysis

33. Why do It? There are at least four reasons for York to pursue AAP now: • To fully realize the University Academic Plan & SMA • To develop evidence-based approach to our Strategic Mandate Agreement • To assess efficiency of shared service programs • To ensure sustainability of the University

34. AAP: Principles • Advancing York’s mission and University Academic Plan • Transparent • Collegial • Evidence-based

35. Typical Criteria used to Evaluate

36. AAP: Process • AAP Steering Group oversees process • Programs complete template; comments from the relevant Dean/administrator • Two task forces analyze academic and administrative submissions in relation to criteria • Submit reports to President and VPs • Collegial review and implementation

37. Critical Path for AAP in 2013 - 2014

38. Discussion • Questions, initial thoughts… For more details: See the May 2013 report of the Vice-Presidents to Senate: http://www.yorku.ca/secretariat/senate/agenda/2012-2013/documents/2013-May/20130523Presentation.pdf

39. Appendix

40. Successes:Enhancing Teaching and Learning Strategic Priorities: • Leadership in eLearning • Experiential education • Student learning outcomes • Curricular innovation Successes: • Academic Innovation Fund supports systematic approach to innovation • eLearning Strategic Report • Participation in Ontario University Online Consortium • Teaching Commons supports teaching development • New leadership in continuing and professional education

41. Successes:Research Intensification Strategic Priorities: • Enhanced research reputation • Strategic Research Plan and emerging opportunities • Enhanced ORUs • Outreach and partnerships locally and internationally • Graduate students and program profile Successes: • Strategic Research Plan 2013-2018: "Building on Strength“ • Increase in external funding despite flat Tri-Council funding levels • New Canada Research Chairs • Implementation of new Senate policy on Organized Research Units • York ranked 4th in Ontario on research impact • Launch of Innovation York

42. Successes:Enriching Student Experience Strategic Priorities: • Student quality • Transition to university/first year experience • Student engagement and success Successes: • Enhanced York Graduate Scholarship to attract high quality graduate students • AIF projects focused on first year experience (e.g., YUStart) • PRASE projects: • Academic advising dashboard • Active academic calendar • Scholarship program under review • Increasing GPA on track in most Faculties • Renewal of full-time complement

43. Successes:Building Community & Extending Global Reach Strategic Priorities: • Community engagement • International partnerships and students • Student mobility Successes: • Expanded outreach locally and internationally • Expanded Experiential Education in many Faculties - institutional strategy to be developed in 2013/2014 • On-going leadership in access and student mobility: • college-transfer credit • ONCAT projects • bridging programs (TYP, IEP) • cross-registration proposal • York-Seneca partnership/York-Ryerson MOU • Attraction of international students to York

44. Successes: Strengthening Interdisciplinarity and Comprehensiveness Strategic Priorities: • Coordinated approach to enrolment planning (SEM) • Expansion of health, engineering, sciences, professional programs in support of increased comprehensiveness Successes: • Strategic Enrolment Management in partnership with Faculties to achieve enrolment targets • Growth and program development in targeted areas, e.g., Accounting, Finance, Global Health, Electrical Engineering, Conference Interpreting • Establishment of Lassonde School of Engineering • Expansion of interdisciplinary curriculum building on strengths in liberal arts and professional programs