-
Simcoe Hall, 27 King’s College Circle, Council Chamber (second floor)
Report Number 219 Of The Planning & Budget Committee
WEDNESDAY, FEBRUARY 11, 2026
To the Academic Board,
University of Toronto,
Your Committee reports that it held a meeting on February 11, 2026 at 3:10 p.m. with the following members present:
PRESENT: Sali Tagliamonte (Chair), Anuradha Prakki (Vice Chair), Trevor Young (Vice President and Provost), Scott Mabury, (Vice President, Operations and Real Estate Partnerships and Vice-Provost, Academic Programs), Mike Snowdon (Acting Assistant Vice-President, Planning and Budget), Janet Cloud, Ramy Elitzur, Robert Gazzale, Giovanni Grasselli, Walid Houry, Angelina Jiang*, Brian Madden, Ryan McClelland, John Oesch, Jesse Pasternak*, Matt Ratto, Robyn Stremler, Colleen Zimmerman*
*participated remotely via Zoom
REGRETS: Jay-Daniel Baghbanan, Kevin Yuan Li, Javed Mostafa, Suresh Sivanandam,
NON-VOTING ASSESSORS: Leah Cowen (Vice President, Research and Innovation and Strategic Initiatives), Jeff Lennon (Interim Chief Financial Officer),
SECRETARIAT: Tracey Gameiro (Secretary), Amanda Grant (Governance Coordinator)
IN ATTENDANCE: Meg Connell (Assistant Provost), Elizabeth Church (Director, Communications & Strategic Projects), Emma del Junco (Academic Reviews & Planning Specialist), Lucy Osborne (Interim Director, Institute of Medical Science, Temerty Faculty of Medicine), Nicholas Rule (Vice-Provost, Academic Programs), Ron Saporta (Chief Operating Officer), Lachmi Singh (Director, Academic Programs, Planning & Quality Assurance), Stephen Wright (Interim Dean, Faculty of Arts & Science)
Pursuant to section 38 of By-Law Number 2,
consideration of items 13 to 14 took place in camera.
OPEN SESSION
- Chair’s Remarks
The Chair welcomed members and guests to the meeting. She encouraged members to participate actively in the discussion and thanked those individuals who also attended the Budget Information Session on February 9, 2026. -
Assessors’ Reports
Beyond the information to be presented as part of the scheduled Budget Presentation, the assessors advised that they had no formal updates for the Committee, aside from a brief update on capital priorities provided by the Vice-President, Operations & Real Estate Partnerships, Professor Scott Mabury.
Professor Mabury advised the Committee that investments were being made in student housing, with a ‘Build More Housing’ initiative planned which proposed the development of approximately 1200 new student beds on the St. George campus. The model was described as leveraging University assets and private-sector expertise to deliver beds at a significantly lower cost than traditional residence construction.
Professor Mabury noted that negotiations were also underway for additional off-campus graduate housing, and that other major capital projects, including the Temerty Faculty of Medicine West Wing redevelopment, continued to advance.
There were no questions from members. - Budget Report 2026-2027 and the Long Range Budget Guidelines 2026-27 to 2030-31
Trevor Young (Vice President & Provost), Scott Mabury (Vice President, Operations & Real Estate Partnerships), and Mike Snowdon (Acting Assistant Vice-President, Planning and Budget), gave a comprehensive presentation addressing the Budget Report for 2026-27, the Long Range Budget Guidelines 2026-27 to 2030-2031, and the 2025-26 Enrolment Report.
The presentation noted that the University continued to be in a strong financial position, with a balanced operating budget of $3.66 billion, significant reserves, and a strong credit rating. Members were advised however, that the University was entering a more constrained planning environment, with revenue growth slowing to 1.1% next year and approximately $100 million less than previously projected due primarily to recalibrated international enrolment targets. Revenue growth was projected to be 3% per year starting in 2027-28.
The Committee was informed that expense pressures remained significant, particularly in compensation and non-discretionary costs. To maintain a balanced budget, divisions had implemented cost containment measures, including shared services reductions, workforce planning adjustments, slowed hiring, and reduced contingency and capital renewal allocations. At the same time, the University continued to prioritize strategic investments in areas such as student financial support, international talent recruitment, housing expansion, research infrastructure, and digital strategy. The presentation also highlighted the whole-of-University operational excellence initiative to maximize resources for the University’s academic mission.
The presentation outlined key revenue drivers, including tuition, provincial operating grants, investment income, and research overhead. It was noted that international tuition continued to be a portion of operating revenue that created both opportunity and risk in light of changing federal immigration policies and global market conditions. Members were advised that international enrolment plans had been adjusted to reflect recent years’ enrolment activity, though some risk remained if intake targets were not achieved.
The Committee also received updates on domestic tuition freezes, provincial funding under the Strategic Mandate Agreement, enrolment corridors, graduate funding enhancements, and the University’s continued commitment to student affordability. The budget included significant allocations for student financial support, with increases in the University of Toronto Advanced Planning for Students (UTAPS) funding program, and continued donor-supported scholarship programs.
Capital planning was highlighted as a major component of the University’s long-term strategy, with approximately $4.4 billion in projects in various stages of development over the next five years, including academic buildings, housing initiatives, and infrastructure renewal. Members were advised that deferred maintenance, pension risk management, and operating reserves continued to be managed prudently to mitigate long-term financial risk.
The presentation concluded by reaffirming that, while revenue growth was more constrained and the operating environment remained uncertain, the University remained financially stable and positioned to advance academic and research priorities within a balanced budget framework.
Discussion
In response to a member’s question regarding the reference to “15% in other revenues” in the budget presentation, Professor Mabury explained that this category included endowment contributions, investment income, and certain divisional revenues. He noted that the University was seeking to grow this category of revenue sources that are not directly tied to student enrolment, and advised that further details were provided in the written Budget Report.
In response to a member’s question regarding the allocation of 6% of international undergraduate tuition revenue to student awards, the Provost and Mr. Snowdon explained that the program was funded through a set-aside of 6% of undergraduate international tuition revenue, currently administered within large direct-entry divisions. They noted that divisions managed the awards under a common framework, but with varying models and award structures. It was acknowledged that assessing need among international students was challenging due to limited access to reliable financial documentation from outside Canada. The Provost advised that the University was undertaking a detailed review of the program, led by the Vice Provost, Strategic Enrolment Management, to assess whether the funds were being deployed optimally. It was also noted that the 6% allocation represented a significant investment relative to other Canadian universities.
In response to a member’s question regarding pressures that led certain departments to exceed the domestic enrolment corridor, the Provost explained that a portion of the variance arose from international applicants who subsequently registered as domestic students, creating an unanticipated shift in enrolment counts. He noted that this factor accounted for a meaningful share of the overage and would require adjustments to domestic intake targets going forward. The Provost indicated that the University was taking steps to strengthen oversight and enforce clearer limits to ensure enrolment levels remain aligned with funded targets.
On motion duly moved, seconded and carried,
YOUR COMMITTEE RECOMMENDED
Be It Recommended:
THAT the Budget Report 2026-27 be approved, and
THAT the Long Range Budget Guidelines 2026-2027 to 2030-31 be approved in principle. -
Enrolment Report, 2025-2026
The Enrolment Report, 2025-2026, was provided to members with the Budget Report presentation. - Capital Project (Level 3): Report of the Project Planning Committee for the Temerty Building (MSB West Wing Redevelopment) (“Temerty Building”) – Interim Project Scope and Sources of Funding
The Committee received a presentation of the Temerty Building proposal from Professor Mabury, with additional remarks from Professor Stephen Wright (Interim Dean, Faculty of Arts & Science), and Dr. Lucy Osborne (Interim Director, Institute of Medical Science, Temerty Faculty of Medicine).
The project was intended to bring together the Temerty Faculty of Medicine and the Faculty of Arts & Science in a new, integrated research, teaching and institutional facility on the St. George campus. The project was described as adding significant state-of-the-art laboratory space, incorporating the campus’ first nodal plan to support climate and sustainability objectives, and providing a prominent ground floor to support Convocation and student spaces.
The presentation outlined that the project was being delivered through an Integrated Project Delivery (IPD) model and that the project team had completed a validation report aligning scope, program, and business case objectives. The Committee was asked to consider an interim project cost to enable early works, including the procurement of long-lead capital items, construction of a below-grade duct bank along King’s College Road, and interior abatement and demolition of the Medical Sciences Building (MSB) West Wing. It was emphasized that approval of early works did not constitute approval of the full total project cost, which was expected to return to full governance consideration in Cycle 3 of the 2026-2027 governance year.
The presentation provided an overview of the proposed building program, including shared institutional space, laboratory and teaching space for the Temerty Faculty of Medicine and the Department of Cell & Systems Biology, and facilities supporting student learning, research collaboration, and inclusion. The Committee was advised that the project aligned with institutional priorities related to academic excellence, interdisciplinary research, student experience, sustainability, and reconciliation.
Updates were also provided on design development, consultation, and municipal engagement, including progress through design review processes and anticipated coordination with the City of Toronto. The presentation concluded with an overview of sustainability features, anticipated project milestones, and the proposed timeline.
Discussion
In response to a member’s question regarding whether the IPD approach was being used exclusively for the Temerty Building project or more broadly, Professor Mabury advised that this was the first time the University had implemented IPD and that its future use would depend on its success. He explained that IPD was a collaborative project delivery model that engaged consultants, contractors, and trades early in the design process to identify constructability and cost issues in advance. This approach was intended to reduce risk, avoid unbuildable or overly complex designs, and improve cost certainty by ensuring alignment between design intent and construction feasibility.
On motion duly moved, seconded and carried,
YOUR COMMITTEE RECOMMENDED
THAT the Report of the Project Planning Committee for the University of Toronto Temerty Building (MSB West Wing Redevelopment), dated January 21, 2026[1], be approved in principle; and
THAT the Interim Project Scope as outlined in the Report of the Project Planning Committee for the University of Toronto Temerty Building (MSB West Wing Redevelopment), be approved in principle, to be funded by the Temerty Faculty of Medicine “Temerty MSB Redevelopment Fund”, the Faculty of Arts & Science “Faculty Major Capital Projects Reserve Fund”, Institutional and Facilities & Services Interim funding. - Capital Project (Level 3): University of Toronto Facilities & Services Project Concept Report for the Climate Positive Campus – Project LEAP 2.0 - Project Scope and Sources of Funding
Following introductory remarks from Professor Scott Mabury, Ron Saporta (Chief Operating Officer), presented Project LEAP 2.0, an infrastructure and energy renewal initiative supporting the University’s goal of becoming climate positive by 2050.
The presentation outlined how LEAP 2.0 built on earlier phases of the Low Energy Acceleration Program (LEAP) by modernizing aging utility infrastructure, responsibly managing campus growth, and strengthening energy resilience to support academic and research excellence. The proposal highlighted planned investments focused on deferred maintenance, decarbonization, and energy efficiency improvements, including the elimination of legacy steam infrastructure, renewal of ventilation and electrical systems, replacement of obsolete controls, and the introduction of new infrastructure to support program growth. The Committee was advised that the project would enhance operational reliability, reduce greenhouse gas emissions, and generate long-term energy and operational cost savings.
The presentation also described measures to increase electrical capacity for future expansion, improve ventilation and humidification in clinical spaces, enhance system resiliency through improved heating and cooling connections, and reduce single points of failure. Sustainability incentives discussed included electrification of heating and hot water systems, heat recovery and heat pump implementation, LED lighting retrofits, solar photovoltaic installation, and insulation upgrades to improve overall energy performance.
Discussion
In response to a member’s question regarding the decision not to rely on carbon offsets, Professor Mabury advised that the University’s position reflected a value-based judgment rather than a purely economic or moral one. He explained that the University preferred to leverage its own research capacity, land assets, and infrastructure investments to achieve climate positive targets, rather than allocating tuition revenues to purchase external carbon offsets. He noted that offsets remain controversial and that there had been broad support at the senior leadership level for pursuing a strategy that focused on internal decarbonization and emission reduction efforts.
On motion duly moved, seconded and carried,
YOUR COMMITTEE RECOMMENDED
THAT the project scope of Project Leap 2.0, as identified in the Concept Reports (Faculty of Dentistry, March 19, 2023; McCaul Complex – July 8, 2022; 500 University – April 8, 2022) be approved in principle; and,
THAT the project be approved in principle to be funded through: Deferred Maintenance Funds. - Academic Plan: Faculty of Applied Science and Engineering (APSE)
The Faculty of Applied Science & Engineering’s (FASE) Strategic Academic Plan for 2026-2031 was received for information. Professor Nicholas Rule (Vice Provost, Academic Programs), introduced the item and Dean Christopher Yip presented the plan. The Plan represented a five-year framework intended to guide the Faculty’s academic, research, and operation priorities. The presentation described the Faculty’s mission, vision, and core values, emphasizing excellence in research and teaching, global engagement, collaboration, sustainability, and equity, diversity, inclusion, and accessibility (EDIA).
Dean Yip shared that the planning process was led by the Office of the Vice Dean, Strategic, and included extensive consultation with students, staff, faculty, alumni, industry, and community partners. The Committee was informed that the Plan was organized around four strategic pillars: educating adaptive thinkers, advancing research excellence, strengthening community, collaboration, and resilience, and building transformative partnerships. Key priorities included expanding experiential learning, enhancing career readiness and leadership development, training the next generation of researchers, modernizing research infrastructure, strengthening administrative and professional support, advancing EDIA integration, and deepening partnerships at local, national, and global levels.
The Plan was structured to include mechanisms for monitoring progress and assessing outcomes over the implementation period.
Discussion
In response to a member’s question regarding the potential addition of 4,500 new provincially funded STEM spaces, Dean Yip advised that the Faculty was actively planning for measured growth, including a proposed new undergraduate program in biomedical engineering that could add approximately 150 students, subject to funding alignment. The Provost added that, institutionally, the University aspired to add approximately 5,000 new undergraduate and 500 graduate STEM spaces across divisions, should provincial funding materialize. He advised that preliminary discussion had taken place regarding future expansion opportunities, and that the University remained well positioned to pursue additional funded growth if approved by the Province.
CONSENT AGENDA
YOUR COMMITTEE APPROVED
THAT the consent agenda be adopted and that Item 9, the Report of the Previous Meeting, be approved.
- Annual Report: Approved Endowed and Limited Chairs, Professorships, Distinguished Scholars and Program Initiatives, 2024-2025
The Committee received the Annual Report: Approved Endowed and Limited Term Chairs, Professorships, Distinguished Scholars and Program Initiatives, 2024-2025 for information. - Report of the Previous Meeting: Report Number 218 – September 18, 2025
The Report of the Previous Meeting was approved. - Business Arising from the Report of the Previous Meeting
There was no business arising from the report of the previous meeting.
END OF OPEN SESSION CONSENT AGENDA
- Date of the Next Meeting: March 25, 2026, 3:10 – 5:10 p.m.
The Chair reminded members that the next meeting of the Committee would be in on March 25, 2026. - Other Business
There were no items of other business.
THE BOARD MOVED IN CAMERA
IN CAMERA AGENDA
- Capital Project (Level 3): Report of the Project Planning Committee for the Temerty Building (MSB West Wing Redevelopment) – Interim Total Project Cost and Sources of Funding
On motion duly moved, seconded and carried
YOUR COMMITTEE RECOMMENDED
THAT the recommendation of the Vice President, Operations & Real-Estate Partnerships, as outlined in the memorandum dated February 4, 2026, regarding the Interim Total Project Cost and Sources of Funding for the Temerty Building (MSB West Wing Redevelopment) project, be approved in principle. - Capital Project (Level 3): University of Toronto Facilities & Services Project Concept Report for the Climate Positive Campus - Project LEAP 2.0 - Total Project Cost and Sources of Funding
On motion duly moved, seconded and carried
YOUR COMMITTEE RECOMMENDED
THAT the recommendation of the Vice President, Operations & Real Estate Partnerships, as outlined in the memorandum dated February 4, 2026, regarding the Total Project Cost and Sources of Funding for the University of Toronto Facilities & Services Climate Positive Campus - Project LEAP 2.0, be approved in principle.
THE COMMITTEE RETURNED TO OPEN SESSION
The meeting adjourned at 5:31 p.m.
February 12, 2026
[1] Following the meeting, a typographical error was identified in the wording of the motion, specifically an incorrect date. For clarity, the Project Proposal Report (PPR) provided to the Committee at the time of review and approval was correct and remains unchanged. The variance was limited to the date referenced in the motion and does not affect the substance of the material considered or the Committee’s decision.