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Simcoe Hall, 27 King’s College Circle, Council Chamber (second floor)
Report Number 215 Of The Planning & Budget Committee
WEDNESDAY, FEBRUARY 12, 2025
To the Academic Board,
University of Toronto,
Your Committee reports that it held a meeting on February 12, 2025 at 3:10 p.m. with the following members present:
PRESENT: David Zingg (Presiding Officer), Trevor Young (Vice President and Provost), Scott Mabury, (Vice President, Operations and Real Estate Partnerships), Jeff Lennon (Assistant Vice President, Planning and Budget), Catherine Amara, Luca Calabretta, Albert Cheng, Janet Cloud, Ryan Cortez, Lisa Dolovich, Jessica Eylon, Robert Gazzale, Rita Kandel, John Oesch, Suresh Sivanandam, Naomi Steenhof, Sali Tagliamonte, Grace Westcott*, Charmaine Williams*
REGRETS: Mark Lautens (Chair), Markus Dubber (Vice Chair)
NON-VOTING ASSESSORS: Leah Cowen (Vice-President, Research and Innovation and Strategic Initiatives), Trevor Rodgers (Chief Financial Officer),
SECRETARIAT: Timothy Harlick, Acting Secretary, Joanne Chou
IN ATTENDANCE: Archana Sridhar (Assistant Provost), Elizabeth Church (Director, Communications & Strategic Projects), Dan Bowyer (College of Electors), Isiah Chow
*participated remotely via Zoom
OPEN SESSION
- Chair’s Remarks
Committee member Professor David Zingg presided over the meeting as both the Chair and Vice-Chair were unable to attend. Professor Zingg 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 10, 2025. -
Assessors’ Reports
Given the Budget Presentation there were no reports from the assessors. - Budget Report 2025-2026 and the Long Range Budget Guidelines 2025-26 to 2029-30
Professor Trevor Young, Vice President & Provost, Professor Scott Mabury, Vice President, Operations & Real Estate Partnerships, and Mr. Jeff Lennon, Assistant Vice-President, Planning and Budget, presented the Budget Report for 2025-26, the Long Range Budget Guidelines 2025-26 to 2029-2030, and the 2024-25 Enrolment Report.
The presentation outlined that the University continued to maintain a strong financial position with a balanced budget of $3.62B for 2025-26, representing a 2.8% increase over the prior year. Two-thirds of operating revenue came from student tuition and fees, with provincial government grants accounting for approximately 20%. Other revenue sources, including investment and endowment income, research overhead funding, and ancillary services, comprised the remaining 14%.
With respect to enrolment, domestic intake exceeded targets by 6%, demonstrating strong demand. International intake saw a 6% decrease to 5,012 students, though this decline was significantly less severe than peer institutions which experienced drops of up to 40%. The University's strategic enrolment plan projected adding approximately 500 domestic undergraduate FTEs over five years, primarily in funded nursing, medicine, and SAMIH expansions.
Student financial support remained a key priority, with $405M allocated for 2025-26. The budget included a significant increase to doctoral student base funding, raising it to $40,000 across all programs. International scholarship programs saw continued growth, with $90M allocated between the International Scholars and Pearson Scholarship programs.
Capital investments featured prominently, with $4.6B in projects planned over the next five years, funded through a combination of cash reserves, future cash contributions, donations and partnerships, and financing. Professor Mabury also reminded the Committee of the $350M initiative to address deferred maintenance, funded through a mix of operating budget and financing.
Compensation costs, representing approximately 64% of expenses, reflected the impact of Bill 124 settlements. Total compensation expenses of $2.37B included $1.23B for academic compensation and $1.07B for staff compensation, with an additional $65M reserved as part of a pension risk contingency fund.
The presentation included an update on Strategic Mandate Agreement 4 (“SMA4”) for 2025-26 to 2029-30. For the first two years, no changes were planned to the funding model, with the current performance-based framework rolling over from SMA3. It was noted that the University had exceeded all SMA3 targets throughout the previous agreement period. The metrics for SMA4 would be reduced from 10 to 8, with 5% of operating grant revenue tied to meeting specific requirements including reporting deadlines and research security attestation.
The long-range forecast projected revenue growth slowing to around 3% annually, compared to historical growth rates of 6% or higher. This more constrained environment led to several operational excellence initiatives, including implementation of shared service hubs, new administrative systems, and process improvements supported by a new $1M Operational Excellence Fund.
Discussion
Following the presentation, members engaged with several key aspects of the budget and planning framework. Questions focused particularly on enrolment management, revenue strategies, and financial sustainability.
In discussing the relationship between enrolment and provincial funding, members sought clarification on funding caps. The Provost explained that while there was no cap on student numbers, government funding was limited to a set number of FTEs. The University had enrolled more domestic students than funded in the current year, attributed primarily to stronger than expected retention rates. This highlighted the ongoing challenge of managing strong domestic demand within provincial funding constraints.
The discussion also focused on international student revenue, where the planned tuition increases of 3% for Arts and Science programs and 4% for Engineering were examined. The Provost explained these rates reflect market analysis and consideration of currency fluctuations, particularly important given the University's position in maintaining international enrolment despite sector-wide challenges.
Attention was also given to the University's operating reserves, with a focus on Principal Investigator operating funds. The administration clarified that these funds, totaling $294M, represented various sources including startup funds and research-related accounts, distinct from restricted research grants. This discussion illuminated the complex nature of university reserves and their role in supporting academic initiatives.
The broader question of financial sustainability under constrained provincial funding emerged as a significant topic. While a member raised questions about exploring greater autonomy from provincial oversight, the Provost and Professor Mabury emphasized the importance of maintaining the University's public mission while pursuing operational efficiencies. This aligned with the presentation's focus on new initiatives to enhance administrative efficiency and maximize resource utilization.
On motion duly moved, seconded and carried,
YOUR COMMITTEE RECOMMENDED
THAT the Budget Report 2025-26 be approved, and
THAT the Long Range Budget Guidelines 2025-2026 to 2029-30 be approved in principle.
- Enrolment Report, 2024-2025
The Enrolment Report, 2024-2025, was provided to members with the Budget Report presentation. - Report of the Previous Meeting: Report Number 214 – January 8, 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. - Date of the Next Meeting: April 9, 2025, 3:10 – 5:10 p.m.
The Chair reminded members that the next meeting of the Committee would be in on April 9, 2025. - Other Business
No items of other business were raised.
The meeting adjourned at 4:35 p.m.
February 12, 2025