2010/11 - 2011/12 Budget

Town HallMay 25, 2010

2010/11 Government Grant ($ in millions)

EXPECTED

BaseTransition and Growth

Total Grant Anticipated

$100.8$ 87.6

$ 87.6 + $6.0 one time

Grant remains at $87.6 million (no one time) for 2011/12

$13.2

ANNOUNCED 2010/11

The Budget Challenge

1)Adjust the enrolment plan based on the 2010/11 funding

2) Develop a two year sustainable and balanced budget

3)Address the shortfall created over the two years as costs continue to increase while grant and tuition revenue is relatively flat

Budget Principles1. Ensure resources are in place to support

all in progress degree students.

2. We must preserve the planned expenditures on “transition” issues in order to continue to meet CAQC degree implementation requirements.

3. We will not increase tuition beyond the already agreed and board approved levels for 2010/11

Budget Principles4. We will not add more students to get

tuition revenue in order to meet budget shortfalls.

5. We can only fund permanent/base expenditures from permanent/base resources . . . one time resources can only fund one time expenditures.

Budget Principles6. Every effort will be made to avoid

position eliminations that would result in layoffs, although resource “reallocation” could result in position changes.

7. All budget decisions will be guided by the focus on student success and satisfaction

Key Budget Assumptions2010/11 2011/12

Grants 0% 0%

Tuition 1.5% 0%

Revenue GeneratingMaintain existing contribution margins Maintain existing contribution margins

Salary (COLA) 0% 0%

Grid Steps/Benefits 3% 3%

Supplies & Services(Inflationary Adjustment)

0% 0%

Institutional PrioritiesBudget 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

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

2010-11Draft #1 Budget

2011-12Draft #1 Budget

Estimated Shortfall- Cumulative

(1.4) (6.3)

Budget Strategy – Step One Revised Enrolment Plan

2008/09Actual

2009/10Projected

2010/11Projected

2011/12Projected

2012/13Projected

2013/14Projected

FLE- original 7,847 8,212 8,695 9,487 9,630 9,649

FLE- revised 7,847 8,212 8,026 8,146 7,828 7,358

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

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.)

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

2010-11Proposed

Budget

2011-12Proposed

Budget

Revenue 201.8 194.2

Expense 200.4 195.6

Net Excess (deficiency)

1.4 (1.4)

One – time reserve allocation to address flow through students

(1.4) 1.4

Budget Projections by Category2010/11 (in millions)

Centrally Funded Credit Programs

and Services Budget

Earned/Directed Revenue Programs

and Services Budget

Externally Funded Research Budget

Total

Revenue 150.4 50.3 1.2 201.8

Expense 150.8 48.1 1.5 200.4

Net Excess (deficiency)

(.4) 2.2 (.3) 1.4

Transfer to Reserves for 2011/12

(1.4)

Budget Projections by Category2011/12 (in millions)

Centrally Funded Credit Programs

and Services Budget

Earned/Directed Revenue Programs

and Services Budget

Externally Funded Research Budget

Total

Revenue 146.6 46.8 .8 194.2

Expense 149.8 44.6 1.1 195.6

Net Excess (deficiency)

(3.2) 2.2 (.3) (1.4)

Transfer from Reserves from 2010/11

1.4

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

Key Assumptions

Provincial funding levels for 2011/12 Enrolment targets MRFA contract negotiations Capital Funding Gap continues to be an

issue

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