2010/11 - 2011/12 Budget

1. 2010/11 - 2011/12 Budget Town Hall May 25, 2010

2. 2010/11 Government Grant ($ in millions) Total Grant Anticipated Transition and Growth Base Expected $ 87.6 $100.8 $13.2 Announced 2010/11 $ 87.6 + $6.0 one time Grant remains at $87.6 million (no one time) for 2011/12

3. The Budget Challenge • Adjust the enrolment plan based on the 2010/11 funding • Develop a two year sustainable and balanced budget • Address the shortfall created over the two years as costs continue to increase while grant and tuition revenue is relatively flat

4. Budget Principles • Ensure resources are in place to support all in progress degree students. • We must preserve the planned expenditures on “transition” issues in order to continue to meet CAQC degree implementation requirements. • We will not increase tuition beyond the already agreed and board approved levels for 2010/11

5. Budget Principles • We will not add more students to get tuition revenue in order to meet budget shortfalls. • We can only fund permanent/base expenditures from permanent/base resources . . . one time resources can only fund one time expenditures.

6. Budget Principles • Every effort will be made to avoid position eliminations that would result in layoffs, although resource “reallocation” could result in position changes. • All budget decisions will be guided by the focus on student success and satisfaction

7. Key Budget Assumptions

8. Institutional Priorities Budget and Facilities • Sustainable Budget, Library and Learning Centre, Centennial Campaign Update Plans • Academic Plan, Student Services, Enrolment Mgmt. People • Employer of Choice, Recruitment and Retention, Celebrate

9. Budget Shortfall 2010/11 to 2011/12(in millions)

10. Budget Strategy – Step One Revised Enrolment Plan

11. Budget Strategy -Step Two Shortfall Strategy • $5 million already invested in 2010/11 to mitigate the financial shortfall • $6 million one- time grant used in both 2010/11 and 2011/12 to support degree completers • Reserve of $1.4 million is created from 2010/11 operations to fund one-time costs in 2011/12 • $1.1 million (one time) to fund scholarships to allow endowments to fully recover from investment losses

12. Budget Strategy -Step Two Shortfall Strategy • Revenues targets adjusted in earned revenue areas • $2.5 million set up as a vacancy contingency to reduce the salary budget • A 18.5 vacant positions were eliminated – no layoffs • Non-salary expenses were carefully reviewed by all budget units and reduced (e.g. printing costs, meeting expenses, MRU sponsored events, utility costs, maintenance contracts, etc.)

13. Financial Plan 2010/11 - 2011/12(in millions)

14. Budget Projections by Category2010/11 (in millions)

15. Budget Projections by Category2011/12 (in millions)

16. Capital Budget • $4.5 million for capital replacement and library acquisitions • $1.3 million for debt payments for the residence and capital leases • $3.2 million in deferred maintenance funding • Will be pursing funding for the new Library and Learning Centre in 2011/12

17. Key Assumptions • Provincial funding levels for 2011/12 • Enrolment targets • MRFA contract negotiations • Capital Funding Gap continues to be an issue

18. Budget Timelines • Budget Town Hall – May 25th • Budget Approval – Board of Governors May 31th Approved Budget documents will be put on My/MRU web site