REPORT NUMBER 283 OF THE BUSINESS BOARD
WEDNESDAY, MARCH 12, 2025
To the Governing Council,
University of Toronto,
Your Board reports that it held a meeting in the Council Chamber, Simcoe Hall on March 12, 2025, at 5:00 p.m. with the following members present:
PRESENT: Rajiv Mathur (Chair), Indi Gopinathan* (Vice-Chair), Scott Mabury (Vice-President, Operations & Real Estate Partnerships), Kelly Hannah-Moffat (Vice-President, People Strategy, Equity & Culture), Trevor Rodgers (Chief Financial Officer), Sharleen Ahmed*, Glen W Bandiera*, Amanda Bartley, Lindsay Boyce*, Vikram Chadalawada, Janet Anne Cloud, K. Sonu Gaind, Maureen Harquail, Thomas Hofmann, Paul Huyer*, Samantha Kappagoda, Scott MacKendrick, Adel Melek, Rima Ramchandani, David Regan, Firdaus Sadid, Ian Taylor*, Mary-Agnes Wilson*
REGRETS: Jovan Bursac, Samuel Elfassy, Kathryn Jenkins, Brian Madden
NON-VOTING ASSESSORS: Trevor Young (Vice-President & Provost), Christine Szustaczek (Vice-President, Communications) Jeff Lennon (Assistant Vice-President, Planning & Budget), Nick Rule (Vice-Provost, Academic Programs), Heather Boon* (Vice-Provost, Faculty & Academic Life), Deborah Brown, Chief Administrative Officer, UTM)
SECRETARIAT: Timothy Harlick (Secretary), Joanne Chou
IN ATTENDANCE: Susan McCahan (Associate Vice-President and Vice-Provost, Digital Strategies and Vice-Provost, Innovations in Undergraduate Education), Angelique Saweczko (University Registrar), Alex Matos (Executive Director, Internal Audit), Sanish Samuel (Controller & Director of Financial Services), Anthony Tia (Director, Treasury and Investments),Elizabeth Cragg (Director, Office of the Vice President, Operations & Real Estate Partnerships), Elizabeth Church (Director, Communications & Strategic Projects, Office of the Vice-President & Provost), Jessica Schwalb (The Varsity)
*attended remotely
Pursuant to section 38 of By-Law Number 2,
consideration of item 15 took place in camera.
OPEN SESSION
- Chair’s Remarks
The Chair welcomed members and guests to the meeting. - Reports of the Administrative Assessors
There were no reports from the administrative assessors. - Tuition Fees
The Board received for consideration the proposed Tuition Fee Schedule for Publicly-Funded Programs for 2025-26 and the Tuition Fee Schedule for Self-Funded Programs for 2025-26.
Presentation of this item was consolidated into the presentation and discussion on both the tuition fees and the Institutional Operating Budget Report 2025-26 and Long-Range Budget Guidelines 2025-26 to 2029-30.- Tuition Fee Schedule for Publicly-Funded Programs, 2025-26
On motion duly moved, seconded, and carried
YOUR BOARD RECOMMENDED
THAT the 2025-26 tuition fees as described in the Tuition Fee Schedule for Publicly-Funded Programs 2025-26 be approved.
- Tuition Fee Schedule for Self-Funded Programs, 2025-26
On motion duly moved, seconded, and carried
YOUR BOARD RECOMMENDED
THAT the Tuition Fee Schedule for Self-Funded Programs for 2025-26, be approved.
- Annual Report on Student Financial Support 2023-24
The Chair noted that the Report was intended as background to the tuition fee schedule.
- Enrolment Report, 2024-25
The Chair noted that the Report was intended as background to the Budget Report and Long-Range Budget Guidelines.
- Tuition Fee Schedule for Publicly-Funded Programs, 2025-26
- Institutional Operating Budget Report 2025-26 and Long-Range Budget Guidelines 2025-26 to 2029-30.
The Chair reminded members that, as the source of advice about financial matters and public accountability, the Business Board 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.
Professor Trevor Young, Vice-President & Provost, Professor Scott Mabury, Vice-President, Operations & Real Estate Partnerships, and Mr. Jeff Lennon, Assistant Vice-President, Planning & Budget, presented the 2025-26 Budget Report and the Long-Range Budget Guidelines 2025-26 to 2029-30.
The presentation outlined the University’s financial position, including key revenue and expenditure assumptions. The Provost commented that while financial pressures persist, the University remains in a strong position with a balanced institutional budget and sufficient operating reserves. Planning considerations were shaped by external factors, including federal directives affecting international student enrolment, ongoing limits on domestic tuition, and inflationary pressures.
Highlights included:
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The total operating budget for 2025-26 is $3.62B, a 2.8 percent increase over the previous year. The budget remains balanced at the institutional level with sufficient operating reserves and the University maintains its Aa1 credit rating.
- Revenue growth is projected to slow to approximately 3 percent annually over the five-year planning period due to continued tuition freezes for Ontario students, constraints on international enrolment, and broader economic uncertainty.
- Enrolment-related revenues account for 86 percent of the operating budget.
- Tuition for Ontario residents remains frozen until at least 2026-27. Out-of-province domestic tuition will increase by 5 percent, and international tuition adjustments vary by program, averaging a 2.9 percent increase.
- The budget assumes growth of 1,700 additional international full-time equivalent students over the planning period. However, recent federal policy changes regarding international study permits introduce financial risks. If international enrolment remains at Fall 2024 levels rather than meeting planned growth, the University could face a revenue shortfall of approximately $54M in 2025-26.
- On a consolidated basis including operating, ancillary, restricted and capital activities, total revenues for 2025-26 are projected at $4.75B, with student fees contributing $2.41B and government grants $1.4B. Expenditures are projected at $4.57B, with salaries and benefits accounting for $2.65B, other operating expenses $878M, and student financial aid $440M. The University projects a net income before transfers of $178M, with allocations made for future capital projects, reserves, and pension contingency.
- The University continues to make targeted capital investments, with approximately $4.6B over the next 5 years in planned projects focused on academic infrastructure, research facilities, and student housing.
- Operational efficiencies were also a focus of this budget, with $1M allocated to an operational excellence fund to support cost-saving initiatives.
- Investments into shared services included a new identity management system, an updated travel and expense system, and expanded electronic library acquisitions.
Discussion
The Board discussed key financial risks affecting the 2025-26 budget, with a focus on enrolment stability, revenue diversification, and other external pressures.
Members inquired about the University’s confidence in meeting international enrolment projections given recent federal policy changes on study permits. The Provost noted that while the regulatory changes have introduced some uncertainty, early application data suggests that enrolment levels remain stable. It was acknowledged that if international student intake does not meet projected growth, there is a potential revenue shortfall of approximately $54M. In addition to international enrolment levels, the Board discussed the University’s broader recruitment strategies, particularly efforts to strengthen outreach in underrepresented regions such as South America.
In response to a member’s question about efforts to broaden revenue sources beyond international tuition, including strategies to increase out-of-province domestic enrolment and introduce new academic offerings tailored to evolving student demand, the Provost outlined initiatives such as a one-year Master of Business Administration option, designed to enhance program appeal and attract a wider range of students.
A member asked a question about the potential impact of geopolitical risks on the University’s research funding, particularly grants from U.S. agencies such as the National Institutes of Health. The administration acknowledged this as an area of ongoing monitoring but noted that U.S. grants represent a relatively small proportion of the University’s total research funding.
Following discussion, members expressed confidence that the budget framework provides a measured and responsible approach to financial planning while maintaining the University’s commitments to academic excellence, student support, and institutional sustainability.
On motion duly moved, seconded, and carried
YOUR BOARD RECOMMENDED
THAT the Budget Report 2025-26 be approved; and
THAT the Long-Range Budget Guidelines 2025-26 to 2029-30 be approved in principle.
- Academic Incidental Fees
The Board received for consideration proposed amendments to Category 5 (Cost-Recovery Ancillary Fees) and Category 6 (Administrative User Fees and Fines) for 2025-26.
Professor Mabury presented the proposed changes, noting that ancillary fees are reviewed annually to ensure they align with university policies and provincial guidelines. He advised that the updates to Category 6 fees included the addition of new administrative user fees and fines, as well as the removal of fees that were no longer applicable. All changes had been assessed to confirm compliance with regulatory requirements and cost-recovery principles.
For Category 5 cost-recovery ancillary fees, Professor Mabury outlined the adjustments for 2025-26, emphasizing that these fees are structured to recover the costs of specific services and programs provided to students. He confirmed that all adjustments had been reviewed to ensure they accurately reflect service delivery costs.-
New Administrative User Fees and Fines (Category 6 Ancillary Fees), 205-2026
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) 2025-26 be added to the Administrative User Fees and Fines Schedule for 2025-26.
THAT the fees listed in Table 2 of the Report entitled Schedule of Ancillary Fees (Categories 5 and 6) 2025-26 be removed from the Administrative User Fees and Fines Schedule for 2024-25.
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Category 5 Cost-Recovery Ancillary Fees, 2025-26 and Category 6, Administrative User Fees and Fines 2025-2026
The Report was received by the Board for information.
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Tentative Agreement Between the University Administration and University of Toronto Faculty Association (UTFA)
The Board received for consideration the amendments to the Memorandum of Agreement between the University of Toronto and the University of Toronto Faculty Association (UTFA).
Professor Kelly Hannah-Moffat, Vice-President, People Strategy, Equity & Culture, presented this item on behalf of her office and Professor Heather Boon, Vice-Provost, Faculty & Academic Life. She informed the Board that on October 3, 2024, the University and UTFA entered mediation to discuss revisions to Articles 7 and 13 of the Memorandum of Agreement (MOA). A joint announcement on February 28, 2025, confirmed that the revised agreement had been ratified.
The revisions to Article 7 restructure the grievance process for faculty and librarians by replacing the previous three-person grievance review panel, which included a professional arbitrator and two faculty members or librarians, with a single professional arbitrator serving as the sole decision-maker. The arbitrator will be selected from a rotating list of mutually agreed-upon arbitrators. Association grievances that have a significant impact on academic employment matters will be decided by a Chief Arbitrator or their Deputy, and a process has been established to determine these appointments by September 1, 2025. Faculty members and librarians will continue to have the option to seek UTFA representation in individual or group grievance mediations. A transition model has also been established for cases currently proceeding under the previous grievance framework.
Professor Hannah-Moffat noted that the University initially had concerns about shifting to a model that removed academic colleagues from the adjudication process, given the importance of collegial governance. However, the University is confident that the arbitrators selected for the process have a strong understanding of academic employment and institutional structures, ensuring that grievances will continue to be handled in a fair and informed manner.
Revisions to Article 13 exclude Vice-Deans and Associate Deans, Academic or equivalent, from UTFA membership, allowing these individuals to participate in academic labour relations processes on behalf of the University without potential conflicts of interest.
Additional changes include new timelines for notices and decisions to improve efficiency, the removal of outdated policies and obsolete terms, and a provision allowing designates to engage in certain negotiation processes. The University consulted with Vice-Presidents, Deans, Principals, and Academic HR leaders, all of whom supported the changes as an improvement to existing processes and a better alignment with university best practices.
On motion duly moved, seconded, and carried
YOUR BOARD RECOMMENDED
THAT the amendments to Article 7 and Article 13 of the MOA, as agreed to by University of Toronto Administration and the University of Toronto Faculty, on February 20, 2025, and the related housekeeping changes to Articles 6 and 11 be approved, effective immediately.
CONSENT AGENDA
On motion duly moved, seconded, and carried
YOUR BOARD APPROVED
THAT the consent agenda be adopted and that Item 10, the Report of the Previous Meeting, be approved.
- Status Report on Debt to February 28, 2025
Members received the Status Report on Debt to February 28, 2025, for information. -
Service Ancillaries Operating Plans, 2025-2026
Members received the Service Ancillaries Operating Plans, 2025-2026, for information. -
Quarterly List of Donations of $250,000 or more to the University of Toronto: November 1, 2023 - January 31, 2025
The Quarterly List of Donations of $250,000 or more to the University of Toronto: November 1, 2023 - January 31, 2025, was received for information. -
Report of the Previous Meeting: Report Number 282, January 29, 2025
Report Number 282, from the meeting of January 29, 2025, was approved. -
Business Arising from the Report of the Previous Meeting
There was no business arising from the report of the previous meeting. -
Report Number 161 of the Audit Committee, January 22, 2025
Report number 161 of the Audit Committee, January 22, 2025, was received for information. -
Date of Next Meeting – Wednesday, April 23, 2025, at 5:00 p.m.
The Board was informed that the next meeting was scheduled for Wednesday, April 23, 2025, at 5:00 p.m.
- Other Business
No other business was raised by members.
The Board moved In-Camera.
IN CAMERA SESSION
- In Camera Reports of the Administrative Assessors
Professor Mabury provided an update on a confidential matter.
The Board returned to Open Session.
The meeting adjourned at 6:54 p.m.
March 17, 2025