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Budget Context for 2012-13

Budget Context for 2012-13. Townhall March 7, 2012. 1. 1. Public Policy Environment. Provincial Throne Speech. Add 60,000 new PSE spaces by 2015-16: = 35,000 undergraduate and 6,000 graduate university spaces

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Budget Context for 2012-13

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  1. Budget Context for 2012-13 Townhall March 7, 2012 1 1

  2. Public Policy Environment

  3. Provincial Throne Speech • Add 60,000 new PSE spaces by 2015-16: = 35,000 undergraduate and 6,000 graduate university spaces • Reduce the average tuition by $1,600 for full-time Ontario students in first-entry programs from families earning less than $160,000 per year where students are within 4 years of graduating from secondary schools (estimated 13,000 Ryerson students or $20M) • Three new undergraduate campuses • Balance provincial budget by 2017-18 • Spending not part of Government's current plan to come from savings realized elsewhere 3

  4. Drummond Report – Fiscal Picture Slow economic growth • Economy predicted to grow by 2% annually Ballooning Provincial deficit • Current $16B provincial deficit will grow to $30B by 2017-18 without severe restraint Restructuring required • Government services must be restructured to find efficiencies and still delivered required services Choices need to be made • Be strategic, don’t make across-the-board cuts

  5. Drummond Report – PSE • Contain Government Expenses • Grants: Increase 1.5% per year, but enrolment is expected to increase by 1.7% per year. • Tuition fee: Increase by 5% annually. • Institutional Cost Efficiencies • Single PSE pension fund administrator • Enhance space utilization and year-round use • Compress four-year degrees into three years by continuing through the summer (8-term degrees)

  6. Drummond Report – PSE • Rewarding quality • Recognize top-performing teachers and researchers with workload and rewards • Measure learning outcomes and value added through education • Tie funding to outcome quality indicators • Differentiation(to improve quality & financial sustainability) • Multi-year mandate agreements • Strategic division of roles of college and university systems • Enforceable credit recognition system

  7. MTCU’s “3 Cubed” Policy Discussion • Three-year undergraduate degrees • Promote 6-term bachelors degrees (Drummond recommended fast-tracking 8-term bachelors degrees over three year) • Three full semesters per year • Promote better use of physical facilities by having full use in Spring/Summer term • Three in five courses online courses • Enable students to take up to 3 courses/semester online, guarantee credits recognized by all institutions • MTCU expects continuing productivity increases for 3 years Source: CBC, Ontario universities urged to move more classes online, February 23, 2012.

  8. University Operating Grant + Net Fees per FTE student by Province (2008-09)

  9. Provincial Budget (March 2012) Strategic Mandate Agreements (?) Key Government Announcements

  10. Ryerson’s Budget

  11. Operating Revenues and Expenditures Revenues Grants + Fees = 98% Expenditures Salaries + Benefits = 80% Source: 2011-12 Ryerson University Budget, Schedule 3

  12. 2012-13 Budget:Principles and Considerations • Budget will promote the 5 Academic Plan priorities approved by Senate • Principles guiding budget development: • Fairness and transparency • Priority on students • Forward looking • Flexibility to respond to changing fiscal circumstances • Balanced operating budget

  13. Ryerson is Well Positioned • Strong demand for Ryerson programs

  14. Strong Demand for Ryerson’s Programs in Fall 2012 All Choices Secondary School Applications • % increase: Ryerson = +6.7% System = +2.4% • Absolute increase: Ryerson #1 = +2,554 System = +9,339 • Total applications: Ryerson #2 First Choice Secondary School Applications • % increase: Ryerson = +7.4% System = +2.0% • Absolute increase: Ryerson #1 = +645 System = +1,747 • Total applications: Ryerson #2

  15. Change in Total Applications from Secondary School, 2012 vs 2011 Source:OUAC

  16. Ryerson is Well Positioned • Strong demand for Ryerson programs • New revenue generation ideas

  17. Entrepreneurial Initiatives:Revenue Generation Ideas • New undergraduate programs (timing critical) • Professional masters • Post-degree certificates and diplomas • ESL program • Experiential semester in digital entrepreneurship and innovation • International student agreements • Others?

  18. Ryerson is Well Positioned • Strong demand for Ryerson programs • New revenue generation ideas • Pension issues addressed

  19. Pension Surplus/Deficit Without Change in Contribution Rate

  20. Pension Surplus/Deficit With Change in Contribution Rate

  21. Ryerson is Well Positioned • Strong demand for Ryerson programs • New revenue generation ideas • Pension issues addressed • No operating deficit

  22. Budget Parameters for 2012-13 Operating Revenues +2.1% Operating Expenditures+5.1% Base Budget reduction -3.0%

  23. Budget Parameters for 2012-13 Operating Revenue +2.1% Operating Expenditures +5.1% Grants: 0% Salaries– Cost of Living: 1.5% Fees: 5% Salaries– Step/Merit/PTR: 1.8% Other Income: 5% Pension: 1.5% + 1.5% Benefits: 8% Non-salary: 4% Previous year’s savings: -1% Strategic reallocations: 1% Planned Base Budget Reduction = 3%

  24. University Budget Development:Next Steps • Revenue and public policy • Provincial budget (March) • Community consultations • Townhalls • Stakeholder consultations • Faculty, school and department budget development

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