REPORT NUMBER 202 OF THE PLANNING AND BUDGET COMMITTEE
February 28, 2022
To the Academic Board,
University of Toronto
Your Committee reports that it held a virtual meeting on Monday, February 28, 2022, at 3:10 p.m. with the following members present:
PRESENT:
Jan K. Mahrt-Smith, (Chair), Mark Lautens, (Vice Chair), Cheryl Regehr, (Vice-President and Provost), Scott Mabury, (Vice-President, Operations and Real Estate Partnerships), Jeff Lennon, (Interim Assistant Vice-President, Planning & Budget), Janet Cloud, Ettore Vincenzo Damiano, Markus D. Dubber, Daniel Haas, Tony Harris, Sarosh Jamal, Rita Kandel, Ernest W. N. Lam, Rajiv Mathur, Nicole Mideo, Amy Mullin, Marium Nur Vahed, Melanie A. Woodin, Vishar Yaghoubian
REGRETS:
Andrew Chen, Bisma Ali, Carol C. Chin, Lisa Rebecca Dolovich
NON-VOTING ASSESSORS:
Leah Cowen, (Vice-President, Research and Innovation and Strategic Initiatives), Trevor Rodgers, (Chief Financial Officer)
SECRETARIAT:
Tracey Gameiro, Secretary
IN ATTENDANCE:
Tad Brown, (Counsel, Business Affairs and Advancement)
Constantin Christopoulos, (Professor, Department of Civil & Mineral Engineering)
Elizabeth Cragg, (Director, Office of the Vice-President, Operations and Real Estate Partnerships)
Joyce Hahn, (Chief Administrative Officer, Office of the Vice-President & Provost)
Anne Macdonald, (Assistant Vice-President, Ancillary Services)
Joshua Mitchell, (Managing Director, Real Estate, University Development and Campus Services)
Justin Nodwell, (Vice-Dean, Research & Health Sciences Education, Temerty Faculty of Medicine)
Brent Sleep, (Chair, Department of Civil & Mineral Engineering)
Tom Saint-Ivany, (Director, Facilities & Infrastructure Planning, Faculty of Engineering)
Archana Sridhar, (Assistant Provost, Office of the Vice-President and Provost)
Heather Taylor, (Executive Director, Facilities Management & Space Planning)
ITEMS 3, 5, 6, 7, AND IN CAMERA ITEMS 13, 14, 15 ARE RECOMMENDED TO THE ACADEMIC BOARD FOR APPROVAL. ITEM 9 WAS APPROVED. ALL OTHER ITEMS ARE REPORTED FOR INFORMATION.
Pursuant to section 33(i) of By-Law Number 2,
Items 13-15 were considered in camera.
OPEN SESSION
- Chair’s Remarks
The Chair welcomed members and guests to the meeting. He encouraged members to participate actively in the discussion and thanked those individuals who also attended the Budget Information Session on February 14, 2022.
- Assessors’ Reports
There were no reports from the assessors.
- Budget Report, 2022-2023, and the Long Range Budget Guidelines 2022-23 to 2026-27
Professor Cheryl Regehr, Professor Scott Mabury and Mr. Jeff Lennon, Interim Assistant Vice-President, Planning and Budget, gave a comprehensive presentation addressing the Budget Report for 2022-23, the Long Range Budget Guidelines 2022-23 to 2026-27, and the 2021-22 Enrolment Report.
As part of her introductory remarks, the Provost stated that despite the lasting effects of the pandemic, the University was in positive financial shape. Resources continued to be directed toward addressing ongoing health and safety measures and ensuring continuity of programs. Looking ahead, the Provost reported that as the University continued to deal with recovery from the pandemic, additional challenges included the declining proportion of government funding, potential constraints on domestic tuition, and the slowing of enrolment growth. The Provost noted that the budget reflected consultations with student groups where key priorities were identified in the areas of student mental health, financial support for students, student advising and experiential learning.
Highlights of the budget and enrolment presentation included: the Long Range Budget Guidelines planned for a balanced budget in each of the five years;
- the total budgeted operating revenue for 2022-23 of $3.23 billion was an increase of $110M over the previous year;
- continued shift in the balance of funding between tuition and provincial operating grants, with provincial support representing 20% of operating revenues;
- the expense structure was largely unchanged (58% for faculty and staff compensation, 10% for student aid, and 7% for capital and equipment);
- budgetary impacts of COVID-19 had been less severe than expected;
- increased spending on financial aid, learning technology, health and safety cleaning protocols, and student supports (partially offset by changes in travel and occupancy);
- deficit funding put in place to support recovery in ancillary services which continued to be significantly impacted by reduced campus activity;
- divisional plans included an average 3.5% revenue growth overall, but significant variation across divisions;
- revenue growth expected to slow in future years;
- divisions had again been asked to develop conservative budgets assuming a freeze of domestic tuition for one additional year (2022-23);
- tuition fees for out of province domestic students in all undergraduate programs would be increased by 3% in 2022-23;
- long-range plan assumed return to a 3% tuition framework starting in 2023-24 going forward for all domestic students;
- provincial funding to decrease from 20% to 18% by the end of the five-year plan;
- international tuition revenues made up 43% of the total operating budget with a slightly higher proportion of international student enrolment planned in the outer years;
- provincial funding for the University of Toronto was significantly less than Canadian peer institutions;
- Strategic Mandate Agreement 3 (2020 to 2025) was increasing the proportion of Provincial funding tied to metrics throughout the term of the agreement;
- enrolment remained steady, despite the continuing COVID-19 pandemic;
- 11% increase in undergraduate intake in Fall 2021 including increases in both international and domestic incoming cohorts, offset by decrease in retention rates for upper year domestic students;
- changes to provincial OSAP criteria required a larger contribution from parents and students with a household income of more than $140K are no longer eligible for non-repayable support, resulting in a decrease in the number and proportion of students receiving OSAP support;
- impact of OSAP changes not universally experienced across the three campuses given higher rates of participation at UTSC and UTM;
- $331M to be set aside for financial aid in 2022-23;
- divisions had earmarked 6% of international tuition revenue for international scholarships for undergraduate students;
- budget priorities focused on students included mental health service redesign and expanded counselling options, increased experiential learning and research experiences, the Climate Positive Campus plan, investments in undergraduate financial aid and graduate funding packages, innovations in embedding EDI principles into curriculum and program designs, increased investment in the Sexual Violence Prevention & Support Centre, and support for divisional priorities in light of continued domestic fee freeze;
- academic divisional plans included hiring of tenure and teaching stream faculty, enhancement of student services, increased experiential learning, work-integrated learning, and research opportunities, introduction of several new academic programs, equity, diversity, and inclusion (EDI) initiatives, and allocations for capital projects;
- priorities in shared service divisions over the next few years included investments in student recruitment and registrarial services, information security programs, technology to increase efficiencies and improve services for faculty and students, funding to sustain library services and collections, supports for EDI initiatives, and spending on deferred maintenance;
- 31 capital projects planned over the next five years with a total spend of $4.6B;
- significant progress in the diversification goals of the University’s international strategic plan over the last two years;
- the pension plan had a $792M plan surplus (on July 1, 2021) for the transfer to the new University Pension Plan [the “UPP”], although the University is responsible for any potential future deficits for 10 years so a pension plan contingency reserve will be built up over the planning period to mitigate against this risk;
- deferred maintenance funding remained a high priority with a long-term goal of increasing investment to 1.5% of the replacement value of facilities annually;
- further to the approach established in 2019 by deans and senior leadership for the management and oversight of operating reserves, no more than 5-10% of operating reserves would be approved for any portfolio; and,
- at the end of 2021 divisions had set aside $447M for future major capital projects.
In response to a member’s question regarding air quality in non-instructional spaces and the ventilation measures implemented across the UofT campuses, the Provost advised members that a listing of all buildings across the St. George, UTM and UTSC campuses where ventilation had been assessed was available online. Professor Mabury added that hepa filters would be installed in all high occupancy non-classroom instructional spaces where the ventilation standard of 6 air changes per hour is not met, as well as in buildings where installation of MERV 13 filters was not possible, and in any areas without mechanical ventilation for high density, multi-use and/or high risk activities. Professor Mabury reiterated his confidence in the University’s ventilation strategy and reported that the University of Toronto’s activities to ensure a safe return to campus with respect to ventilation exceeded any requirements as well as the undertakings of any other university in the country.
With regards to the enrolment disparity across campuses, the Provost indicated that the University of Toronto Scarborough was actively engaged in program development to attract students from wider geographical areas, as well as efforts to increase pathways for non-traditional students.
Regarding declining OSAP participation rates, the Provost stated that income data was gathered from OSAP applications, and those students declined OSAP funding appeared largely to be those ‘cut off’ by the newly revised higher income thresholds. She reported that the University had expanded from 30 to 100 access programs which increased pathways for non-traditional students into the University of Toronto’s various programs (including students from varied socio-economical backgrounds).
On motion duly moved, seconded and carried
YOUR COMMITTEE RECOMMENDED
THAT the Budget Report 2022-23 be approved, and
THAT the Long Range Budget Guidelines 2022-23 to 2026-27 be approved in principle.
- Enrolment Report, 2021--22
The Enrolment Report, 2020-21, was provided to members with the Budget Report presentation.
- Capital Project: Report of the Project Planning Committee for the Emerging and Pandemic Infections Centre (EPIC) Facility - Project Scope and Sources of Funding
Vice-President, Operations and Real Estate Partnerships, Professor Scott Mabury, presented an overview of the project planning report for the EPIC Facility, highlighting the following:- EPIC was the only research-dedicated high-containment level 3 facility in the Greater Toronto Area that had regularly license to conduct Risk Group 3 (RG3) research, including manipulation in vitro and use of in vivo infection models;
- the new EPIC facility would address space constraints and distance between existing EPIC3 facilities (which had restricted the analyses that could be performed), and replace aging units that had reached the end of their expected lifespan;
- the high containment facilities were critical for research to understand and develop interventions to combat infection caused by existing and emergent pathogens;
- the complex infrastructural requirements of the facilities necessitated planning now for its renewal, which would allow ongoing work and increased capacity;
- to address the infrastructural challenges facing the RG3 program at the University, the new EPIC unit would be renovated within the Medical Sciences Building; and,
- the EPIC Unit supported the activities of approximately 45 Principal Investigators across multiple divisions at the University of Toronto, Toronto Academic Health Science Network (TAHSN), other Canadian universities, and other government partners [Public Health Agency of Canada (PHAC) and Health Canada].
There were no questions from members.
On motion duly moved, seconded and carried
YOUR COMMITTEE RECOMMENDED
THAT the project scope of the Emerging and Pandemic Infections Centre (EPIC) Facility, as identified in the Report of the Project Planning Committee for the University of Toronto Emerging and Pandemic Infections Centre (EPIC) Facility, dated February 10, 2022, be approved in principle; and,
THAT the project totaling 1,124 net assignable square metres (nasm) 2,138 gross square metres (gsm), be approved in principle, to be funded by Temerty Faculty of Medicine (TFoM) Operating Funds, TFoM Dean’s Covid Priority Fund, Government/CFI and Fundraising.
- Capital Project: Report of the Project Planning Committee for Harbord Residence, A New Graduate Residence on Harbord Street – Project Scope and Sources of Funding
Professor Mabury introduced the project noting that it was the third 4Corners project that had gone through governance in recent year years. He stated that the project contributed to the ‘double bottom line’ goal, (characteristic of 4Corners projects), of contributing to the academic mission by providing much needed graduate student housing, alongside generating risk appropriate returns for the University. Community and student consultations were held through the design phase and students participated in the project planning committee as well as the working group meetings chaired by the local City Councillor.
Mr. Joshua Mitchell, Managing Director, Real Estate, University Development and Campus Services then presented the following highlights of the Project Planning Committee Report, dated January 14, 2022, for the Harbord Residence:- the residence would offer 188 beds;
- 22% of all suites would be accessible by AODA standards;
- the Harbord residence would be physically connected to the existing Graduate Residence with both above and below grade pedestrian paths, creating a strong physical relationship between the buildings, which would share amenities and ‘back of house’ services; and,
- construction was expected to commence summer 2022, and complete by summer 2024.
In the discussion that followed, Professor Mabury advised that in response to recent feedback, re-naming of the ‘nomad’ suites would be considered. Ms. Anne Macdonald, Assistant Vice-President, Ancillary Services, added that given the anticipated popularity of the self-contained layout of these suites, (which offered a private kitchenette and private washroom), consideration would be given to whether these types of units could be introduced in future developments.
In conclusion, Professor Mabury advised members that the Harbord Residence offered a better and more cost-effective housing option than that currently available to students off campus.
On motion duly moved, seconded and carried
YOUR COMMITTEE RECOMMENDED
THAT the project scope of the Harbord Residence, as identified in the Report of the Project Planning Committee for Harbord Residence, A New Graduate Residence on Harbord Street, dated January 14, 2022, be approved in principle; and,
THAT the project totaling 9,415.77 gross square metres (gsm), be approved in principle, to be funded by the University operating fund and financing.
- Capital Project: Report of the Project Planning Committee for the Galbraith Structural Testing Facility – Project Scope and Sources of Funding
Professor Mabury presented the highlights of the project planning report for the Galbraith Testing Facility, which included:- the Structural Testing Laboratory in the Department of Civil & Mineral Engineering was among the top few testing facilities in North America and had received numerous awards for the quality of research performed;
- this renovation project was centred around major modifications to infrastructure original to the building;
- current structural facilities were unable to model entire complex infrastructure under extreme loading conditions due to limited capabilities in numerical modelling and experimental testing; and,
- the project would overcome current limitations by establishing a mega-scale multi-dimensional experimental facility that would enable testing of larger-scale specimens in numerous configurations under multi-directional loading conditions.
In response to a member’s question, Professor Constantin Christopoulos, (Department of Civil & Mineral Engineering), provided a summary explanation of the multi-dimensional process to test load capacity.
On motion duly moved, seconded and carried
YOUR COMMITTEE RECOMMENDED
THAT the project scope of the Galbraith Structural Testing Facility, as identified in the Report of the Project Planning Committee for the Galbraith Structural Testing Facility, dated January 21, 2022, be approved in principle; and,
THAT the project totaling 667 net assignable square metres (nasms) (709 gross square metres (gsm)), be approved in principle, to be funded by the Canadian Foundation for Innovation (CFI), the Ontario Research Fund (ORF), Dean’s Office, Faculty of Applied Science and Engineering Operating Funds and, Civil and Mineral Engineering Operating Funds.
OPEN CONSENT AGENDA
On a motion duly moved, seconded, and carried
YOUR COMMITTEE APPROVED THAT
the consent agenda be adopted.
- Annual Report: Approved Endowed and Limited Term Chairs, Professorships, Distinguished Scholars and Program Initiatives, 2020-2021
The Committee received the Approved Endowed and Limited Chairs, Professorships, Distinguished Scholars and Program Initiatives, 2020-2021 report for information.
- Report of the Previous Meeting: Report Number 201 – September 23, 2021
Report Number 201 of September 23, 2021 was approved.
- Business Arising from the Report of the Previous Meeting
There was no business arising from the report of the previous meeting.
- Date of the Next Meeting – April 13, 2022, 3:10 – 5:10 p.m.
The Chair reminded members that the next meeting would be held on April 13, 2022 at 3:10 p.m.
- Other Business
There were no items of other business.
THE BOARD MOVED IN CAMERA.
- Capital Project: Report of the Project Planning Committee for the University of Toronto Emerging and Pandemic Infections Centre (EPIC) Facility - Total Project Cost and Sources of Funding
YOUR COMMITTEE RECOMMENDED
THAT the recommendation of the Vice-President, Operations and Real Estate Partnerships, as outlined in the memorandum dated February 16, 2022, regarding the Total Project Cost and Sources of Funding for the University of Toronto Emerging and Pandemic Infections Centre (EPIC) Facility, be approved in principle.
- Capital Project: Report of the Project Planning Committee for Harbord Residence, A New Graduate Residence on Harbord Street - Total Project Cost and Sources of Funding
YOUR COMMITTEE RECOMMENDED
THAT the recommendation of the Vice-President, Operations and Real Estate Partnerships, as outlined in the memorandum dated February 16, 2022, regarding the Total Project Cost and Sources of Funding for the Harbord Residence, A New Graduate Residence on Harbord Street, be approved in principle.
- Capital Project: Report of the Project Planning Committee for the Galbraith Structural Testing Facility - Total Project Cost and Sources of Funding
YOUR COMMITTEE RECOMMENDED
THAT the recommendation of the Vice-President, Operations and Real Estate Partnerships, as outlined in the memorandum dated February 16, 2022, regarding the Total Project Cost and Sources of Funding for the Galbraith Structural Testing Facility, be approved in principle.
The Committee returned to Open Session.
The Chair thanked members for their attendance and participation in the Committee meeting.
The meeting adjourned at 5:05 p.m.
March 3, 2022