Report: Business Board - March 13, 2024

Print as PDF
-
Council Chamber, Simcoe Hall

REPORT NUMBER 277 OF THE BUSINESS  BOARD

WEDNESDAY, MARCH 13, 2024

To the Governing Council,
University of Toronto,

Your Board reports that it held a meeting in the Council Chamber, Simcoe Hall on March 13, 2024, at 5:00 p.m. with the following members present:

PRESENT: Rajiv Mathur (Chair), Mathangi Gopinathan (Vice-Chair)*, Meric Gertler (President), Scott Mabury (Vice-President, Operations & Real Estate Partnerships), Trevor Rodgers (Chief Financial Officer), Sharleen Ahmed, Vikram Chadalawada, Janet Anne Cloud, Alicia Damley, Annabelle Dravid*, Paul Huyer, Thomas Hofmann*, Kathryn Jenkins, Nelson Lee, Scott MacKendrick, Brian Madden, Rima Ramchandani, David Regan, Carmen Sebert*, Ian Taylor, Veronica Wadey, Grace Westcott, Mary-Agnes Wilson

REGRETS: Kelly Hannah-Moffat (Vice-President, People Strategy, Equity & Culture), Glen W Bandiera,  Maureen Harquail, Kikelomo Lawal

NON-VOTING ASSESSORS: Trevor Young, Vice-President & Provost, Christine Szustaczek, Vice-President, Communications, Susan McCahan, Vice-Provost, Academic Programs and Vice-Provost, Innovations in Undergraduate Education, Jeff Lennon, Assistant Vice-President, Planning & Budget, Luke Barber, Executive Director, Digital & Physical Infrastructure*

SECRETARIAT: Timothy Harlick (Secretary), Megann Davidson

IN ATTENDANCE: Gwen Burrows, Assistant Vice-President, International Engagement & Impact Sanish Samuel, Controller & Director Financial Services, Anthony Tia, Director, Treasury and Investments, Elizabeth Cragg, Director, Office of the Vice President, Operations & Real Estate Partnerships, Ihab Khalil, Chief Operations Officer (PSEC), Alex Matos, Director, Internal Audit, Angelique Saweczko, University Registrar, Sonya Tara Donovan, Managing Director, Real Estate Portfolio (for in camera Item 15), Helen Bao, Executive Finance Officer (OREP), Chad Nuttall, Assistant Dean, Students & Int'l Initiatives, UTM, Alex Bratt, Labour Relations (PSEC)

*attended remotely

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

OPEN SESSION
 

  1. Chair’s Remarks

    The Chair welcomed members and guests to the meeting.
  2. Reports of the Administrative Assessors

    There were no reports from the administrative assessors.
  3. Tuition Fees

    The Chair advised members that the main theme of the meeting was student fees and the budget and 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. He also thanked those members who were able to attend the budget preview information session held on February 12, 2024.

    The President introduced the tuition fee schedules and budget report noting that while the University faced many of the same challenges faced by other universities in Ontario, with slowing revenue growth and high inflation impacting expenses, the University continued to be in sound financial shape and is again presenting a balanced budget plan.

    He further commented that the Province’s recent funding announcement of $1.3 billion for Ontario colleges and universities over three years was welcome news. However, it fell short of the approximately $2.5B in funding recommended by the Blue-Ribbon Panel. He noted that the anticipated increase in grant funding of $20M would essentially offset the 3-year extension of the domestic tuition freeze.

    The President commented that the Provincial government had also announced additional funding for capital renewal and mental health supports. The University looked forward to receiving more information on how this funding would be allocated across the post-secondary education sector.

    He concluded his remarks with an update on the Federal government’s announcement of their plans to reduce international student visas by approximately 35% nationally and by 50% in Ontario. The University had not yet been given a final allocation by the Province, but he anticipated that the negative impact to the University would be relatively small.  

    Professors Trevor Young, Vice-President Academic & Provost, and Scott Mabury, Vice-President, Vice-President Operations and Real Estate Partnerships, and Mr. Jeff Lennon, Assistant Vice-President, Planning and Budget, reported on the Budget Report for 2024-2025 and the Long Range Budget Guidelines 2024-25 to 2028-29, as well as the tuition fee recommendations.  

    Highlights of the budget presentation included the following:
  • The total budgeted operating revenue for 2024-25 of $3.52 billion was a $164 million increase over the 2023-2024 budget.
  • Only 20% of revenue came from operating grants which made the University of Toronto the lowest publicly funded university in Canada.
  • Revenue growth was slowing, with an average 4.9% projected revenue growth rate, although this varied widely by division.
  • Extraordinary compensation increases awarded as a result of Bill 124 being ruled unconstitutional would have a multi-year impact, which reduced funding for other priorities.
  • Compensation made up 64% of the budget, including contingencies for pension deficit risk.
  • 7% was set aside for capital projects.
  • Student aid made up 11% of the budget, with total spending for student financial aid projected at $380 million for 2024-25.
  • The federal government’s announcement to limit international student study permits had introduced an element of uncertainty.
  • Key budget priorities and University Fund Allocations included support for divisional initiatives, classroom technology upgrades to support student success, research related initiatives, shared services and infrastructure renewal, and capital investments.
  • Budgetary risks included inflationary pressures, the cap on international student visas, deferred maintenance, operating reserves, and continued diversification of the student population. 
  • A new schedule titled “Financial Statement of Operations” had been introduced into the budget.
     

Discussion

Following the presentation, members discussed revenue assumptions and expense increases with the assessors, which included the impact of the Provincial government's recent tuition freeze announcement that ran contrary to the Blue-Ribbon Panel recommendations, the announced international student visa cap, and the impact of Bill-124 compensation on expenses. In response to members’ questions, the Board was informed that:

  • the University would receive a modest increase in the provincial grant to offset the tuition freeze, amounting to an approximate 0.6% increase to the operating budget this year.
  • Post Bill-124 settlements amounted to an increase of $154M in planned expenses and members commented on the potential for streamlining shared services and finding other efficiencies to reduce costs where appropriate.
  • incremental funding available for other expenditures was limited to an average of approximately $10M to maintain a balanced budget. This was the average across the University and varied by division with an eye to key priorities.
  • Approximately 5 years ago, the University began collecting data through its participation with UNIFORUM. This data played a key role in understanding administrative and support services at the University and identify opportunities for creating efficiencies.
     

As the Board discussed the tuition fee schedules, questions were raised regarding student categories, enrolment targets, recruitment efforts, and on the progress of the University toward increasing enrolment numbers in equity-deserving groups. In response to these questions, the Board was informed that:

  • the five largest Faculties with the highest percentages of international undergraduate students for 2023-24 were:  Arts & Science - 36.9%; UTSC -34.8%; Information - 34.7%; Applied Science & Engineering   - 30.0%; and UTM - 28.2%.
  • the President played a vital role in advancing the University’s international presence through hosted events in countries where opportunities for enrolment growth existed.
  • domestic out of province student tuition rates were not subject to the tuition freeze and that category of student was also eligible for operating grant funding support from the Provincial government.
  • Professor Young reaffirmed the University’s commitment to EDI with a reference to his time as Dean of the Temerty Faculty of Medicine, and also provided several examples of institutional initiatives underway. Two such examples he described were:
    • ​​​​​The Indigenous Tuition Initiative, a newly established grant that covered the full tuition of all eligible Indigenous undergraduate and graduate programs for students from the nine identified First Nations communities; and
    • A new Enrichment Academy that engages with students in grade 9 to help assist them in their transition to post-secondary education.
       
    1. Tuition Fee Schedule for Publicly-Funded Programs, 2024-25

      On motion duly moved, seconded, and carried

      YOUR BOARD RECOMMENDED

      THAT the 2024-25 tuition fees as described in the Tuition Fee Schedule for Publicly Funded Programs 2024-25 be approved.
       
    2. Tuition Fee Schedule for Self-Funded Programs, 2024-25

      On motion duly moved, seconded, and carried

      YOUR BOARD RECOMMENDED

      THAT the Tuition Fee Schedule for Self-Funded Programs for 2024-25, be approved.
       

    3. Annual Report on Student Financial Support 2022-23

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

    4. Enrolment Report, 2023-24

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

  1. Institutional Operating Budget Report 2024-25 and Long-Range Budget Guidelines 2024-25 to 2028-29

    The Chair reminded members that the Business Board, as the source of advice about financial matters and public accountability, was being asked to concur with the recommendation of the Academic Board that the Budget be approved. It was the Board’s duty to satisfy itself that the proposal was financially responsible, that the budget assumptions were realistic, and that the level of risk in the budget was acceptable.

    On motion duly moved, seconded, and carried

YOUR BOARD RECOMMENDED

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

THAT the Budget Report 2024-25 be approved, and

THAT the Long Range Budget Guidelines 2024-25 to 2028-29 be approved in principle.    

  1. Academic Incidental Fees

    1. New Administrative User Fees and Fines (Category 6 Ancillary Fees), 2024-2025

      Professor Mabury highlighted that there were 9 fees proposed to be added and 14 fees proposed to be removed from the Schedule in 2024-25. The new fees proposed for 2024-25 had been reviewed and were deemed to comply with MCU Guidelines and University policy.

      On motion duly moved, seconded and carried

YOUR BOARD APPROVED

THAT the fees listed in Table 1 of the Report entitled Schedule of Ancillary Fees (Categories 5 and 6) 2024-25 be added to the Administrative User Fees and Fines Schedule for 2024-25; and

THAT the fees listed in Table 2 of the Report entitled Schedule of Ancillary Fees (Categories 5 and 6) 2024-25 be removed from the Administrative User Fees and Fines Schedule for 2024-25.

  1. Category 5 Cost-Recovery Ancillary Fees, 2024-25 and Category 6, Administrative User Fees and Fines 2024-2025

    The Report was received by the Board for information.

CONSENT AGENDA

 

On motion duly moved, seconded, and carried

YOUR BOARD APPROVED

THAT the consent agenda be adopted and that Item 9, the Report of the Previous Meeting, be approved.

  1. Status Report on Debt to February 29, 2024

    Members received the Status Report on Debt to February 29, 2024, for information.
  2. Service Ancillaries Operating Plans, 2024-2025

    Members received the Service Ancillaries Operating Plans, 2024-2025, for information.
  3. Quarterly List of Donations of $250,000 or more to the University of Toronto: November 1, 2023 - January 31, 2024

    Members received the Quarterly List of Donations of $250,000 or more to the University of Toronto: November 1, 2023 - January 31, 2024, for information.
  4. Report of the Previous Meeting: Report Number 276, January 31, 2024

    Report Number 276, from the meeting of January 31, 2024, was approved.

  5. Business Arising from the Report of the Previous Meeting

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

  6. Report Number 156 of the Audit Committee, March 6, 2024

    Report number 156 of the Audit Committee, March 6, 2024, was received for information.
  7. Date of Next Meeting – Wednesday, April 25, 2024, at 5:00 p.m.

    The Board was informed that the next meeting was scheduled for Wednesday, April 25, 2024, at 5:00 p.m.

  1. Other Business

    No other business was raised by members.

The Board moved In-camera.

IN CAMERA CONSENT AGENDA
 

  1. In Camera Reports of the Administrative Assessors

    Professor Mabury reported the status of particular capital projects.

    Professor Young provided an updated on the status of collecting bargaining on behalf of Professor Kelly Hannah-Moffat, Vice-President, People Strategy, Equity & Culture, who was unable to attend the meeting.
  2. Property Acquisition Matter

    Board Member Thomas Hofmann declared a conflict of interest and exited the meeting in advance of the Board’s discussion of the property acquisition matter.

    On motion duly made, seconded and carried

YOUR BOARD APPROVED

THAT the recommendation of Professor Scott Mabury, Vice-President, Operations and Real Estate Partnership, as outlined in the memorandum dated March 6, 2024, regarding a confidential property acquisition matter, be approved.
 

The Board returned to Open Session.

The meeting adjourned at 7:02 p.m.

March 22, 2024