Report: Planning and Budget Committee - February 27, 2023

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Council Chamber, Simcoe Hall


REPORT NUMBER 206 OF THE PLANNING AND BUDGET COMMITTEE


FEBRUARY 27, 2023

To the Academic Board,
University of Toronto

Your Committee reports that it held a meeting on February 27, 2023, at 3:10 p.m. in the Council Chamber, Simcoe Hall with the following members 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, (Assistant Vice-President, Planning & Budget),  Carol Chin, Janet Cloud, Lisa Dolovich, Markus Dubber, Linda Johnston, Rita Kandel*, Nicole Mideo, Amy Mullin, John Oesch, Ali Syed, Steven Thorpe,

*participated remotely via Zoom

REGRETS

Missy Chareka, Summer Hart, Scott MacKendrick, Melanie Woodin

NON-VOTING ASSESSORS

Leah Cowen (Vice-President, Research and Innovation and Strategic Initiatives), Trevor Rodgers (Chief Financial Officer)

SECRETARIAT

Tracey Gameiro, Secretary

IN ATTENDANCE

Helen Huang, (CAO, OISE)
Daniella Mallinick, (Director, Academic Programs, Planning and Quality Assurance, Office of the Vice-Provost, Academic Programs),
Leah Scherk, (Director, Space Planning & Management, OISE)
Archana Sridhar, (Assistant Provost, Office of the Vice-President and Provost)
Erika Walker, (Dean, OISE)

ITEMS 3, 5 AND IN CAMERA ITEMS 12, ARE RECOMMENDED TO THE ACADEMIC BOARD FOR APPROVAL. ITEM 8 WAS APPROVED. ALL OTHER ITEMS ARE REPORTED FOR INFORMATION.


Pursuant to section 33(i) of By-Law Number 2,
Item 12 was received in camera.

OPEN SESSION

  1. 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 attended the Budget Information Session on February 13, 2023. 
     
  2. Assessors’ Reports

    There were no reports from the assessors.
     
  3. Budget Report, 2023-2024, and the Long Range Budget Guidelines 2023-24 to 2027-28

    Cheryl Regehr (Vice President & Provost), Scott Mabury (Vice President, Operations & Real Estate Partnerships), and Jeff Lennon (Assistant Vice-President, Planning and Budget), gave a comprehensive presentation addressing the Budget Report for 2023-24, the Long Range Budget Guidelines 2023-24 to 2027-28, and the 2022-23 Enrolment Report.  

    Highlights of the presentation included:
  • the University continued to be in strong financial shape, but was entering a period of slowing revenue growth which would put pressure on expense plans;
  • demand for programs continued to be strong both domestically and internationally;
  • consultations with student groups identified key priorities in areas of student mental health, financial support and student advising;
  • the Long Range Budget Guidelines planned for a balanced budget in each of the five years;
  • the total budgeted operating revenue for 2023-24 of $3.36 billion was an increase of $124 million over the previous year;
  • the continued downward shift in operating grant funding was down to 20% and anticipated to further reduce to 18% of the budget by the end of the five-year plan;
  • the proportion of the budget supported by the Ontario government continued to be significantly less than peer institutions across the country;
  • an estimated $2.09 billion was projected for faculty and staff compensation in the years ahead;
  • enrolment-related revenues from student fees and operating grants were projected to increase by 3.3%, primarily driven by tuition revenue as a result of modest changes to domestic enrolment within the fixed Provincial funding envelope, a small increase in international enrolment, as well as a 2.3% increase in international tuition fees;
  • while yet to be confirmed by the Province, the budget assumed that the freeze on domestic tuition would continue for 2023-24, with the result that domestic tuition fees continued to be less than they were five years ago;
  • in preparation for the possibility that some flexibility on domestic tuition would be allowed, two tuition schedules would be brought forward to Business Board for approval – one with a 0% increase to domestic Ontario resident fees and the other with a proposed 3% increase to these fees;
  • a 3% tuition increase would provide approximately $15 million in additional revenue which would be allocated across the divisions to help meet inflationary pressures;   
  • non-Ontario resident domestic fees were differentiated starting in 2022-2023 with a 3% increase versus the freeze on resident fees for undergraduate programs, this policy would be continued with a 5% increase for 2023-2024, consistent with the current provincial framework;
  • in addition, there may be a possibility from the Government for a special adjustment to domestic tuition in programs where the University’s fees are materially lower than a comparator group and the University is awaiting details on this;
  • international tuition fees made up 43% of the operating budget with a projected increase to 45% over the next five years;
  • the province’s performance based funding framework which had been delayed because of potential Covid impacts would be phased in in 2023-2024, tying 10% of funding to performance metrics;
  • in 2023-2024, 55% of the operating funding would be received through the Differentiated Envelope;
  • total undergraduate enrolment in Fall 2022 increased slightly;
  • combined intake across all direct entry programs was lower than projected, with the majority of the variance being in international intakes, in part due to delays in student permit processing times;
  • domestic enrolment was slightly below planned but still within the enrolment corridor and did not pose a risk to operating grant funding;
  • the University planned to add approximately 3,700 domestic students across undergraduate programs;
  • international undergraduate enrolment was projected to increase from 30.9% to 31.5% by the end of the five-year planning period;
  • the UTAPS bursary program was under review to make it more responsive to student financial needs and less connected to the OSAP system;
  • total spending for student aid was projected at $365 million for 2023-24, with the greatest portion being derived from operating funds;
  • budget priorities included additional investments in information security, student advising systems, research staffing to support scholars, faculty recruitment and services, funding to sustain library services and collections, and increased funding to address deferred maintenance and utilities infrastructure renewal; 
  • planned investments in 24 academic capital projects (with a total spend $4.0 billion) and 4 Four Corners capital projects ($1.2 billion) were projected over the five-year planning period;
  • budgetary risks included inflationary pressures, potential compensation uncertainties as a result of Bill 124 having been ruled unconstitutional, deferred maintenance, operating reserves, and continued diversification of the student population;

    Discussion

    As part of the ensuing discussion, the following matters were addressed:

    Information Technology
  • investments in information technology infrastructure totalled approximately $200 million ($50 million centrally and $150 million at the divisional level), a significant amount of which was to support student learning and adequately resource online education;

    Deferred Maintenance
  • a fully transparent algorithm based scoring system was used to prioritize deferred maintenance needs and determine allocations;
  • each time a capital project involved rehabilitation or demolition of an older building, significant deferred maintenance liability is eliminated;
  • more was spent on deferred maintenance than was formally presented in the deferred maintenance budget;
  • “priority one” deficiencies included anything that would make a space not viable for occupancy (e.g. leaky roofs);

    OSAP
  • efforts continued to be made towards obtaining more granular survey data from student equity parameters beyond socio-economic data to better assess the impact of OSAP changes;

    Housing
  • housing needs for faculty, staff and students were part of academic budget reviews and also determined through broader discussions with academic administrators on an ongoing basis;
  • housing remained a part of the Four Corners Strategy;

    Tuition Freeze
  • financial aid programs continued to support students with the highest financial needs, but tuition cuts and freezes had meant fewer resources to do so;
  • funding for international students was available not only through merit based scholarship programs, but also through emergency bursary funds and specific partner programs that were needs based (e.g. Mastercard Foundation Scholars Program);

     

    On motion duly moved, seconded and carried

    YOUR COMMITTEE RECOMMENDED

    THAT the Budget Report 2023-2024 be approved, and

    THAT the Long Range Budget Guidelines 2023-2024 to 2027-28 be approved in principle.
     

  1. Enrolment Report, 2022-2023

    The Enrolment Report, 2022-23, was provided to members together with the Budget Report presentation and member questions were also addressed at that time in item 3 above.
     
  2. Capital Project(Level 2): Report of the Project Planning Committee for the OISE Roof Community Garden & Indigenous Education Network (IEN) Social, Cultural Practice Space - Project Scope and Sources of Funding

    Vice-President, Operations and Real Estate Partnerships, Scott Mabury provided an overview of the OISE Roof Community Garden & IEN Social, Cultural Practice Space at the Ontario Institute for Studies in Education (OISE).  Dean Erica Walker, Helen Huang, (Chief Administrative Office, OISE), and Leah Scherk, (Director, Space Planning & Management, OISE), were in attendance to assist with members’ questions.  

    Professor Mabury remarked that while the project was relatively modest in scale, its impact within the OISE community would be significant.  Highlights of the project included:
  • dedicated student study space would be created connected to the west rooftop;
  • the project underwent considerable community consultation, both with the Indigenous and wider OISE community;
  • the rejuvenated rooftop space would provide outdoor amenity space, informal study space, and meaningful spaces for Indigenous social and cultural practices;
  • the space was designed to be fully accessible, with barrier free exterior access;
  • construction was anticipated to begin May 2023, with an approximate 14-month duration;

    There were no questions from members.

     

    On motion duly moved, seconded and carried

    YOUR COMMITTEE RECOMMENDED

    THAT the project scope of the OISE Roof Community Garden & Indigenous Education Network (IEN) Social, Cultural Practice Space as identified in the  Report of the Project Planning Committee for University of Toronto OISE Roof Community Garden & Indigenous Education Network (IEN) Social, Cultural Practice Space, dated December 13, 2022, be approved in principle; and,

    THAT the project totaling 108 net assignable square metres (nasm) and 1,150 square metres (sm) of outdoor terrace space, be approved in principle, to be funded by the OISE Future Major Capital Project Reserves.
     

  1. Academic Plan: Leslie Dan Faculty of Pharmacy’s Emerge, Thrive and Lead, Academic Plan 2022-2027

    The Academic Plan for the Leslie Dan Faculty of Pharmacy was received for information. Dean Lisa Dolovich presented the plan and provided an overview of its six high-level themes:

    1. Champion Equity, Diversity and Inclusion

    2. Educate Pharmacy for Tomorrow

    3. Deliver Impact Through Cutting-Edge Discovery

    4. Build Leadership, Wellness, and Community

    5. Advance Use of Digital Technology

    6. Support Sustainability in Health Care
       

Dean Dolovich noted that the plan identified detailed performance metrics, goals, and objectives related to each of the themes.

Members had no questions, and the Chair applauded the Faculty for a well thought out plan.

OPEN SESSION CONSENT AGENDA


 

On motion duly moved, seconded, and carried

YOUR COMMITTEE APPROVED THAT

the consent agenda be adopted.
 

  1. Annual Report: Approved Endowed and Limited Term Chairs, Professorships, Distinguished Scholars and Program Initiatives, 2021-2022

    The Committee received the Annual Report: Approved Endowed and Limited Term Chairs, Professorships, Distinguished Scholars and Program Initiatives, 2021-2022 for information.

    There were no questions from members.
     
  2. Report of the Previous Meeting: Report Number 205 – September 22, 2022

    Report Number 205 of September 22, 2022 was approved.
     
  3. Business Arising from the Report of the Previous Meeting

    There was no business arising from the report of the previous meeting.
     
  4. Date of the Next Meeting –April 12, 2023, 3:10 – 5:10 p.m.

    The Chair reminded members that the next meeting would be held on April 12, 2023 at 3:10 p.m.
     
  5. Other Business

    There were no items of other business.

    THE BOARD MOVED IN CAMERA.

IN CAMERA SESSION
 

  1. Capital Project: Report of the Project Planning Committee for the OISE Roof Community Garden & Indigenous Education Network (IEN) Social, Cultural Practice Space - 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 17, 2023, regarding the Total Project Cost and Sources of Funding for the OISE Roof Community Garden & Indigenous Education Network (IEN) Social, Cultural Practice Space, 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 4:56 p.m.
 

February 28, 2023