2010/11 - 2011/12 Budget Town Hall May 25, 2010. 2010/11 Government Grant ($ in millions) E XPECTED...
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Transcript of 2010/11 - 2011/12 Budget Town Hall May 25, 2010. 2010/11 Government Grant ($ in millions) E XPECTED...
2010/11 - 2011/12 Budget
Town Hall
May 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 Assumptions
2010/11 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 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
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