The Board of Governors has unanimously approved 2010-11 capital and operating budgets, ringing out the final year of Western’s four-year planning cycle on a note of restraint.
“I am satisfied that the focus of this budget is the best interest of our students, as well as ensuring the success of our academic and research ambitions,” says Board of Governors Chair Frank Angeletti.
He describes the budget as fiscally responsible and transparent.
Projecting revenues of $564.2 million and expenditures of $586.1 million, a shortfall of about $22 million will be made up from an operating reserve.
“Despite the financial constraints we face, Western aspires to be not only one of the best universities in Canada but to be recognized as one of the best in the world. As president (Amit) Chakma has said on many occasions, for Western to accomplish our goals, the university must find new sources of revenue, including successfully delivering on our $500-million campaign goal.”
To assist in that goal, a one-time allocation of $12.5 million will be used to support donor-matching in the campaign. The money will allow the university to pursue private donations, through supplementary university contributions, in areas of high priority such as endowed chairs, student financial aid and research initiatives.
Other one-time allocations include $4.9 million for Canadian Foundation for Innovation matching funding; $2.5 million towards the Inter-Disciplinary Initiative fund (to be allocated over the next five years); and $1.2 million towards the Doctoral Supervision Internal Grant (DSIG).
Budget restraints for faculties and supports units will continue.
The budget document notes a staffing reduction is expected in University Machine Services, where activity has been low due to fewer projects from the Boundary Layer Wind Tunnel, which itself suffered layoffs last year and is undergoing a review.
“While the whole university has had to weather the economic downturn in the last year, it continues to be particularly challenging for those units that are dependent on research contracts with the private sector and other organizations for a significant portion of their operating revenue,” says Angeletti.
“Western makes every effort to minimize the impact that these changes have on our employees.”
Angeletti feels the university has remained strong during the financial crisis and can weather what is expected to be tighter financial support provincially.
“Western enters the last year of this planning cycle anticipating flattening provincial funding in comparison to the revenue growth earlier in the decade,” he says.
“While we do not know all the details, the province is clearly signaling that we are entering into a new era of austerity for the public sector.
“Universities, including Western, will be expected to do our share to contain growth in expenditures.”
Internationalization continues to be a priority, with plans to increase the number of first-year students by 100 and improve Western’s incoming international class numbers.
Western’s levels are about 2.8 per cent, less than half the provincial average.
While only 25 of these spots may be filled this fall, for the first time these students will be eligible to receive scholarships in 2010-11, with the university setting aside $250,000. An additional $50,000 will support international student recruitment and $50,000 for English as a Second Language initiatives.
Tuition for new first-year international students will rise six per cent (to $15,530), with a four-per-cent increase for continuing international students (to $1,240).
For Canadian students, first-year tuition will increase 4.5 per cent to $5,159 (with the exception of Engineering – $8,743; Media Technology Program – $5,450; and Nursing – $5,159). There will be a four-per-cent increase for all continuing students.
The provincial government announced the current tuition framework will continue for another two years, with 10 per cent of the increase set aside for needs-based student aid. The estimated tuition set-aside funding for 2010-11 is $11.3 million.
In the capital budget, Western is spending $112 million, with $55 million for new construction, the majority for the new Ivey building ($39 million) and the Wind Engineering, Energy and Environment Facility (WindEEE) at more than $9 million.
Just over $20 million targets major renovations, the two largest being Physics & Astronomy ($8.1 million) and Stevenson and Lawson halls ($7 million).
“We are pleased that we are moving ahead because these facilities are required for Western to achieve its academic and research goals,” says Angeletti.
“The federal and provincial economic stimulus funding enabled us to move ahead with construction of the new Ivey building eventually allowing other academic areas to occupy the current Ivey building. The Physics & Astronomy building has long been in need of updating and we’re pleased this project is underway.”