Report: Business Board - March 17, 2021

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Via Virtual Meeting

REPORT  NUMBER  257 OF THE  BUSINESS  BOARD

Wednesday, March 17, 2021

To the Governing Council,
University of Toronto.

Your Business Board reports that it held a virtual meeting on Wednesday, March 17, 2021 at 5:00 p.m. with the following members:

PresentAnna Kennedy (Chair), Bruce Winter (Vice-Chair), Brian Lawson, Vice-Chair of the Governing Council, Meric Gertler, President, Scott Mabury, Vice-President, Operations and Real Estate Partnerships, Kelly Hannah-Moffat, Vice-President, Human Resources and Equity, Sheila Brown, Chief Financial Officer, Robert G. Boeckner, Harvey Botting, David Bowden, Teodora Dechev, K. Sonu Gaind, Sue Graham-Nutter, Sarosh Jamal, Kathryn A. Jenkins, Joan Johnston, Kikelomo Lawal, Jan K. Mahrt-Smith, Rajiv Mathur, Brian A. Miron, Andrew Padmos, David Regan, Susan Rodgers, Danielle Skipp, Ian Taylor, Vishar Yaghoubian

Regrets: Janet Ecker, Amin Kamaleddin

Secretariat: Anwar Kazimi, Deputy-Secretary of the Governing Council, Patrick F. McNeill, Secretary

Non-Voting Assessors: Cheryl Regehr, Vice-President & Provost, David Palmer, Vice-President, Advancement, Trevor Rodgers, Assistant Vice-President, Planning and Budget, Andrew Arifuzzaman, Chief Administrative Officer, UTSC, Saher Fazilat, Chief Administrative Officer, UTM, Joshua Mitchell, Director, Real Estate

In Attendance: Evan Kanter, Governor-Elect, Elizabeth Cragg, Director, Office of the VPOREP, Rosalyn Figov, Chief Operations Officer, Office of the VPHRE, Archana Sridhar, Assistant Provost, Tyler Riches, Vice-President, Public & University Affairs, UTSU

ITEMS 3(a), 3(b) AND 4 WERE RECOMMENDED TO THE GOVERNING COUNCIL FOR APPROVAL. ITEMS 5(a), 5(c) and 6; AND IN CAMERA ITEMS 15 AND 16 WERE APPROVED. ALL OTHER ITEMS ARE REPORTED TO THE GOVERNING COUNCIL FOR INFORMATION

Pursuant to section 33(i) of By-Law Number 2,
items 13 to 16 were considered in camera.

OPEN SESSION

  1. Chair’s Remarks
    The Chair welcomed members and guests, including President Gertler. 

    The Chair noted that three speaking requests had been received to speak to items 3(a) and 4 on the Agenda: Publicly-Funded Tuition Fees; and the Budget Report 2021-2022 and the Long Range Budget Guidelines 2021-22 to 2025-26.  

    The Chair advised that In Camera item 17 regarding Compensation Increases for Professional, Managerial and Confidential Staff, Advancement Professionals and Senior Research Associates & Research Associates would be considered in open session following item 5(b).
  2. Reports of the Administrative Assessors

    The VPOREP reported on the following:

COVID-19 Update
The University had been engaged with local health authorities to arrange space to operate on-campus COVD vaccine clinics at St. George and UTM; a clinic would soon open at UTSC. He recognized the commitment and contribution by numerous U of T faculty and staff from the Lawrence S. Bloomberg Faculty of Nursing and Temerty Faculty of Medicine, as well as the 700 student volunteers who had also assisted to date. The University was also involved with rapid screening and was exploring an on-site pilot project for antigen testing.

Residence Pilot Project
In collaboration with the Department of Chemistry, the City of Toronto and the Ontario Ministry of the Environment, a waste-water testing pilot project was underway in 2 of the most populous University residences (Grad House and 89 Chestnut).

Tuition Fees and Budget
The Chair advised members that the main theme of the meeting was student fees and the budget. 

The Chair referred to two background reports that had been provided: under Item 3(c) Annual Report on Student Financial Support; and Item 3(d) Enrolment Report. She thanked those members who were able to attend the budget preview information session held on February 8, 2021.

Professors Regehr and Mabury, and Mr. Rodgers, reported on the Budget Report for 2021-2022 and the Long Range Budget Guidelines 2021-22 to 2025-26, as well as the tuition fee recommendations. With reference to the presentation on the Budget, it was noted that despite the significant uncertainty created by the pandemic, the worst case financial scenarios had not come to pass.  The University was in positive financial shape but continued to face the challenges of recovery from the pandemic, declining proportion of government funding, and constraints on domestic tuition fees. Despite the challenges this presented fiscally, the Long Range Budget Guidelines planned for a balanced budget at the institution level in each of the five years.

President Gertler expressed his support for the Budget and Long Range Budget Guidelines reflecting on the University’s experience and strength to weather difficult and challenging times; and that while COVID had affected the University negatively, the implications for the operating budget were less severe than they might have been. He recognized that the resilience of the University was a testament to the hard work and creativity of faculty and staff; and the perseverance and patience of students.  Although many students around the globe had begun to learn remotely, the President stated that he was optimistic to welcoming them on campus in the fall.

The President referred to the recent report of Moody’s Investor Services which reaffirmed a number of credit ratings in the University sector, following both the pandemic and Laurentian University events.  U of T had maintained its Aa1 stable rating – the report also cited U of T’s status as Canada’s flagship university with an international profile and very strong reputation.

President Gertler stated that the University would continue to manage ongoing risks such as the pressures of declining provincial funding and related tuition policy restrictions, and the safe return to campus in the fall. He was pleased to see that the budget process presented an opportunity to manage these risks, but also to invest in programs and services, infrastructure, increased financial assistance for students, enhancements to the student experience, and support for faculty and staff.

President Gertler concluded by acknowledging and thanking the Provost, the Vice-President, Operations and Real Estate Partnerships & Vice-Provost, Academic Operations, and the Assistant Vice-President, Planning and Budget, and their teams for their exceptional work in bringing the budget forward.

In response to members’ comments and questions, Professors Regehr and Mabury, stated the following:

  • Times Higher Education survey results included statistics on employability, including undergraduate student employability; U of T continued to achieve positive results;
  • Federal government initiative to broaden support for Canadian residency and other citizenship requirements for international students was welcomed, especially in response to challenges presented by COVID;
  • University experienced slight decrease in number of domestic student applications in 2020; offset by higher retention number of upper-year domestic students;
  • As part of the quality assurance reviews of its academic programs, the University continued to track acceptance offer rates, as a percentage of total applications; key performance indicators continued to highlight high quality and caliber of students who accepted enrolment offers.
  1. Tuition Fees
    1. Tuition Fee Schedule for Publicly-Funded Programs, 2021-22

The Chair invited Mr. Evan Kanter, Director, External Relations of the Computer Science Students Union (and Student Governor-Elect) to address the Board on Item 3(a). 

Mr. Kanter referred members to a proposal (Same Degree, Same Fee: Calling for Equitable Tuition for All Science Students and accompanying petition) to reduce tuition for Computer Science, Bioinformatics, and Data Science students to be equal to the tuition of other science students. He stated that as part of a consultation among members of the Computer Science Student Union, Bioinformatics and Computational Biology Student Union, Arts and Science Student Union (ASSU), and University of Toronto Students' Union (UTSU), three themes had emerged with respect to tuition policy: inequitable access, fair treatment, and student wellness and mental health.  On behalf of the represented groups, Mr. Kanter requested the Board to consider tabling the motion regarding Item 3(a) tuition fee schedule.

The Chair then invited Mr. Tyler Riches, Vice-President, Public & University Affairs, UTSU to address the Board on Item 3(a).

Mr. Riches supported the comments made by Mr. Kanter regarding the financial challenges faced by students and that tuition fees for computer science, bioinformatics, and data science programs be lowered to that of other programs in the Faculty of Arts and Science; he also recommended that the University freeze international and domestic tuition fees for the 2021-2022 academic year.

In response, Professor Mabury explained that differential fees were a key part of the tuition fee framework developed by the Province, including all professional undergraduate and graduate programs. Overall tuition, grants, and other revenue that supported the University as a whole were largely distributed according to Divisional needs and not on the basis of any one unit’s or program’s capacity to be self-funding or profit generating. 

The VPOREP stated that changing the tuition structure to that proposed in same Same Degree, Same Fee: Calling for Equitable Tuition For All Science Students document would amount to a significant reduction in revenues derived from tuition fees that would materially impact the student experience across all three campuses. He added, considering this, the University could not commit at this time to implementing the change proposed by the student groups. Professor Mabury stated that he did support ongoing discussions with the Dean of the Faculty of Arts and Science and ASSU, and with other Divisions with respective student societies, to consult on divisional budget allocations.

The Chair thanked Mr. Kanter and Mr. Riches for their presentations.

On a motion duly moved, seconded, and carried

YOUR BOARD RECOMMENDED TO THE GOVERNING Council

THAT the 2021-22 tuition fees as described in the Tuition Fee Schedule for Publicly-Funded Programs 2021-22 (March 1, 2021) be approved.

  1. Tuition Fee Schedule for Self-Funded Programs, 2021-22

On a motion duly moved, seconded, and carried

YOUR BOARD RECOMMENDED TO THE GOVERNING COUNCIL

THAT the 2021-22 tuition fees as described in the Tuition Fee Schedule for Self-Funded Programs for 2021-22 (March 1, 2021) be approved.

  1. Annual Report on Student Financial Support:  Report of the Vice-Provost, Students 2019-20

The Chair noted that the Report was intended as background to the tuition fee schedule.

  1. Enrolment Report, 2020-21

The Chair noted that the Report was intended as background to the Budget Report and Long Range Budget Guidelines.

  1. Institutional Operating Budget Report 2021-22 and Long Range Budget Guidelines 2021-22 to 2025-26.

The Chair invited Mr. Riches to address the Board on Item 4.

Mr. Riches stated that he had attended the meeting held on March 11, 2021 of the Academic Board to relay his concerns about the student consultation process as it related to the development of the University Budget.  He commented that in his opinion students were frustrated for taking time to advocate during the pandemic to raise concerns but felt that their voices had not been heard.  He presented four recommendations on behalf of the UTSU: 1. each Division should create a consultation process similar to that proposed by FAS in December, 2020; 2. student unions should be able to make budget submissions; 3. Town Hall meetings should be held prior to the budget being finalized; and 4. access to detailed divisional and departmental budget information should be made accessible.

The Chair thanked Mr. Riches for his comments.   

In response to Mr. Riches and members’ comments, the Provost explained that the budget process started at the divisional level and that she would consult with the Deans on how to better engage students in the annual budget process.  She also noted that both the Provost’s Office and the Office of the Vice-Provost, Students, met regularly with student leaders.  Professor Regehr reminded members that the University continued to rely on tuition fees as a significant part of the University’s revenue stream and that the government had made a decision in 2020 to reduce tuition fees by 10% across the Province for all post-secondary institutions – tuition fees have continued to be frozen.

On a motion duly moved, seconded, and carried

YOUR BOARD RECOMMENDED TO THE GOVERNING COUNCIL

THAT the Business Board concur with the recommendation of the Academic Board,

THAT the Budget Report 2021-22 be approved, and

THAT the Long Range Budget Guidelines 2021-22 to 2025-26 be approved in principle.

  1. Academic Incidental Fees
    1. New Administrative User Fees and Fines (Category 6 Ancillary Fees), 2021-2022

          On motion duly moved, seconded and carried

          IT WAS RESOLVED       

 THAT the fees listed in Table 1 of the Report entitled Schedule of Ancillary Fees (Categories 5 and 6) 2021-22 be added to the Administrative User Fees and Fines Schedule for 2021-22; and

 THAT the fees listed in Table 2 of the Report entitled Schedule of Ancillary Fees (Categories 5 and 6) 2021-22 be removed from the Administrative User Fees and Fines Schedule for 2021-22.

  1. Category 5 Cost-Recovery Ancillary Fees, 2021-22 and Category 6, Administrative   User Fees and Fines, 2021-22

The report was received by the Board for information.

  1. Compensation Increases for Professional, Managerial and Confidential Staff, Advancement Professionals and Senior Research Associates/Research Associates

On a motion duly moved, seconded, and carried

IT WAS RESOLVED

THAT the compensation increases and benefits for Professional, Managerial and   Confidential Staff, Advancement Professionals and Senior Research Associates/Research Associates as outlined in the Memorandum dated March 12, 2021 from Professor Kelly   Hannah-Moffat, Vice-President, Human Resources and Equity, be approved.

OPEN SESSION CONSENT AGENDA                                    

On a motion duly moved, seconded, and carried

YOUR BOARD APPROVED

THAT the consent agenda be adopted.

  1. Report of the Previous Meeting

Report Number 256 of the Business Board, February 3, 2021 was approved.

  1. Business Arising from the Report of the Previous Meeting

There was no business arising from the Report of the previous meeting.

  1. Service Ancillaries Operating Plans, 2021-2022

The Service Ancillaries Operating Plans, 2021-2022 was received for information.

  1. Status Report on Debt to February 28, 2021

The Status Report on Debt to February 28, 2021 was received for information.

  1. Report Number 141 of the Audit Committee, March 3, 2021

Report Number 141 of the Audit Committee dated March 3, 2021 was received for information.

  1. Date of the Next Meeting – Tuesday, April 27, 2021

The Chair advised members that the next meeting would be Tuesday, April 27, 2021 at 5:00 p.m.

  1. Other Business

There were no items of other business.

THE BOARD MOVED IN CAMERA

  1. In Camera Reports of the Administrative Assessors

The Chief Financial Officer offered a response to a member’s question regarding restricted funds.

The Vice-President, Human Resources and Equity reported on a collective agreement matter.

  1. Quarterly List of Donations of $250,000 or more to the University of Toronto –           November 1, 2020 to January 31, 2021

The Quarterly List of Donations of $250,000 or more to the University of Toronto – November 1, 2020 to January 31, 2021 was received for information.

  1. Capital Project: Report of the Project Planning Committee for the Wallberg Building ‘Sustainability Lab’ – Execution of the Project

On motion duly made, seconded and carried

YOUR BOARD APPROVED

The recommendation of Professor Scott Mabury, Vice-President, Operations and Real Estate Partnerships, as outlined in the memorandum dated March 8, 2021, regarding the execution of the Wallberg Building ‘Sustainability Lab’ capital project.

  1. Capital Project: Temerty Faculty of Medicine off-campus lease space conversion – Execution of the Project

On motion duly made, seconded and carried

YOUR BOARD APPROVED

The recommendation of Professor Scott Mabury, Vice-President, Operations and Real Estate Partnerships, as outlined in the memorandum dated March 8, 2021, regarding the execution of the Temerty Faculty of Medicine off-campus lease space conversion capital project.

The Board returned to open session.

The Chair thanked members for their attendance and participation in the Board meeting.

The meeting adjourned at 6:43 p.m.