Report Number 214 Of The Planning & Budget Committee
WEDNESDAY, JANUARY 8, 2025
To the Academic Board,
University of Toronto,
Your Committee reports that it held a meeting on January 8, 2025 at 3:10 p.m. with the following members present:
PRESENT: Mark Lautens (Chair), 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, Antoinette Handley, Rita Kandel, Suresh Sivanandam, Naomi Steenhof, Sali Tagliamonte*, Grace Westcott*, Charmaine Williams
*Participated remotely via Zoom
REGRETS: Markus Dubber (Vice Chair), John Oesch, David Zingg
NON-VOTING ASSESSORS: Trevor Rodgers (Chief Financial Officer)
SECRETARIAT: Timothy Harlick, Acting Secretary
IN ATTENDANCE: Ron Saporta (Chief Operating Officer, Property Services & Sustainability), Joyce Hahn (Chief Administrative Officer, Division of the Vice-President & Provost), Alex Matos (Executive Director, Internal Audit) (Elizabeth Cragg (Director, Office of the Vice President, Operations & Real Estate Partnerships), Lachmi Singh (Director, Academic Programs, Planning & Quality Assurance), Audelyn Budihardjo (Assistant Director, Internal Audit), Alexandra Varela (Coordinator, Academic Programs)
Pursuant to section 38 of By-Law Number 2,
consideration of items 10 and 11 took place in camera.
OPEN SESSION
- Chair’s Remarks
The Chair welcomed members and guests to the meeting. He noted that a request to address the Committee on the topic of the budget for the Faculty of Music and the provision of student services had been received, considered, and declined as the matter was a not a topic of discussion on the agenda. The student was referred to the Dean of the Faculty of Music to further discuss the matter. -
Assessors’ Reports
Report of the Vice-President & Provost
2024-25 Budget Update
For the budget year 2024-25, the Vice-President & Provost had outlined a projected revenue of $3.52 billion, representing a 4.9% increase from the previous year. The budget structure relied heavily on tuition and fees, which constitute two-thirds of operating revenue, while provincial government funding accounts for approximately 20%. The administration had planned to present a balanced operating budget, with significant allocations toward employee compensation and student financial aid.
Enrolment figures played a significant role in the budget considerations, as 87% of operating revenues are tied to enrolment through student fees and operating grants. While international intake decreased by 6% (978 students or 16% below target), this decline was less severe than at peer institutions. This shortfall was partially offset by strong domestic enrolment, which exceeded targets by 733 students (6%). Additionally, better-than-expected retention rates for both international and domestic students, combined with higher summer enrolment, helped mitigate the financial impact of reduced international intake.
Despite some challenges, including lower-than-planned intake in certain graduate programs, the overall budget variance was expected to be approximately $23 million below plan, which is considered manageable within the $3.5 billion operating budget. However, these enrolment patterns will impact the 2025-26 budget, with revenue growth projected to be less than 2%. Academic divisions were actively planning for this reduced growth while working toward a balanced budget for 2025-26.
The Vice-President & Provost also addressed the topic of provincial attestation letters (PALs), noting that while there existed uncertainty in federal operations due to the Prime Minister's resignation and prorogation of Parliament, the University anticipated that the federal office responsible for PALs would continue to function normally and process these documents as expected. - Debt Financing for Deferred Maintenance Program
Professor Scott Mabury, Vice-President, Operations & Real Estate Partnerships, introduced the proposal for Debt Financing for the Deferred Maintenance Program.
Mr. Ron Saporta, Chief Operating Officer, Property Services & Sustainability, provided a presentation that highlighted the importance of the University's infrastructure in supporting its academic mission. He noted that the Deferred Maintenance (DM) backlog had grown to $1.2B, up 23% from 2023, due to aging buildings from large construction waves in the 1960s and early 2000s. Deferred Maintenance had been a significant budget priority, but construction cost inflation and aging buildings made it challenging to keep up with renewal needs. The 2023 DM spend was $49.2M, below provincial and Canadian averages for DM investment. High inflation rates and climate change were increasing DM budget pressure and putting a strain on older infrastructure. Without additional investment, the University risked further deterioration, impacting its ability to deliver world-class research and education.
The program would address the highest priority renewal needs based on physical condition, current and future use, and the impact of anticipated failures. The majority of the investment would occur on the St. George Campus, using a multi-factor weighted approach for project selection while the University of Toronto Mississauga and University of Toronto Scarborough would prioritize projects based on their local campus needs.
He concluded his presentation noting that financial implications would be reviewed during the implementation phase of the program as part of the University's annual budget planning process.
Discussion
In response to a member's question regarding whether the $250M in financing was sufficient, Professor Mabury explained that this amount was carefully constructed to match the University's implementation capacity. He noted that the three-wave project plan, starting May 2025 with completion in Fiscal 2027/28, represents what the University can realistically execute while maintaining normal operations. The amount allows for proper project staging to minimize disruption to academic activities, aligns with internal project management capabilities, and enables a phased approach that ensures quality implementation.
In response to a question regarding the project selection process, Mr. Saporta outlined their data-driven, risk-based approach to prioritization. He explained that the University's current funding has allowed for items with a risks core of 4.9 out of 5.0 to be funded. The proposed program projected would allow items with a score of 4.5 and greater to be selected. This significant improvement demonstrates the impact the investment would have on addressing critical infrastructure needs.
Professor Mabury also highlighted how capital projects contribute to reducing the deferred maintenance backlog through strategic infrastructure replacement. He noted that in 2023, beyond the $41M allocated in the operating budget, an additional $23M in deferred maintenance was eliminated through the demolition and replacement of aging infrastructure as part of capital projects.
On motion duly moved, seconded and carried,
YOUR COMMITTEE RECOMMENDED
THAT the scope of the Deferred Maintenance Program be approved in principle; and,
THAT the project be approved in principle to be funded through: financing and the deferred maintenance budget.
- Faculty of Information’s Academic Plan 2025-2029: Nurturing, Transforming, and Impacting our World with Information
The Academic Plan for the Faculty of Information was received for information. The Provost introduced the item commenting on the consultation process undertaken in creating the academic plan.
Dean Javed Mostafa presented the plan and highlighted its four high-level themes and related initiatives of the plan: Building Bridges, Practicing Impact, Fostering Leadership, and Intersections. He detailed the specific initiatives under each theme, emphasizing the importance of cross-program collaboration, addressing global challenges, promoting leadership, and renovating the Bissell Building.
Dean Mostafa further noted that there were no immediate financial implications at the adoption stage. Financial implications would be reviewed during the implementation phase as part of the University's budget planning process. - Annual Report: Approved Endowed and Limited Term Chairs, Professorships, Distinguished Scholars and Program Initiatives, 2023-2024
The Committee received the Annual Report: Approved Endowed and Limited Term Chairs, Professorships, Distinguished Scholars and Program Initiatives, 2022-2023 for information. - Report of the Previous Meeting: Report Number 213 – September 17, 2024
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: February 12, 2025, 3:10 – 5:10 p.m.
The Chair reminded members that the Committee would next meet on February 12, 2025, at 3:10 p.m. - Other Business
Professor Mabury reported on a series of successful real estate negotiations that will have a positive impact the University's future footprint and capabilities.
As of February 1, 2025, the University secured immediate occupancy of part of the Centre for Addiction and Mental Health building (CAMH) through an agreement with CAMH accelerating its acquisition and occupancy timeline that had originally been set for 2058. Additionally, Professor Mabury noted that the University had recently acquired 175 College Street, allowing for further expediting of the University’s plan to relocate departments from other locations.
THE COMMITTEE MOVED IN CAMERA
IN CAMERA AGENDA
- In Camera Reports of the Administrative Assessors
There were no in camera reports from the administrative assessors. - Debt Financing for Deferred Maintenance Program
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 December 20, 2024, regarding the Debt Financing for the Deferred Maintenance Program, be approved in principle.
THE COMMITTEE RETURNED TO OPEN SESSION
The meeting adjourned at 4:35 p.m.
January 13, 2025