Despite uncertainty regarding provincial government operating grants and lower revenues, Western remains on solid financial footing, said Janice Deakin, provost and vice-president (academic).
“The way we plan here, and the shape this institution is in, we have to be careful, but I’m really pumped,” Deakin told the Senate last week. “I think our competitors in this province are nowhere near in the position to handle it (provincial cuts), for example, the new tuition framework; and we don’t have a pension liability. I’m really encouraged.”
In the 2013-14 budget, Western will see an increase in operating revenue of 3.5 per cent ($653.7 million) and an expenditure increase of 4.9 per cent ($662.5 million), for an in-year deficit of $8.9 million.
Read about Western’s 2013-14 budget by visiting the University Secretariat website.
Earlier this year, the provincial government announced a new tuition framework for the next four years (2013-14 through 2016-17), which allows for an overall annual increase of 3 per cent for domestic students, a significant decline from the level of 5 per cent in the previous framework, Deakin noted. This year’s increase will see $21.4 million extra in tuition revenue.
The last three university budgets also highlighted the fact Western’s international student tuition rates were well below those of its peer institutions, and an 8 per cent increase in tuition for international first-year students (4 per cent for ongoing students) this year will look to narrow that gap with other schools.
Western is working toward 10 per cent international undergraduate student population. The institution stands now at 4.2 per cent, with 476 students this year.
“I don’t see a difficulty in meeting that goal as we go forward,” Deakin said.
Provincial grant reductions across the province stand at $28.6 million this year – representing a $1.7 million reduction for Western in the third year of a four-year budget plan. Those provincewide cuts are expected to leap to $57.9 million in 2014-15.
“We need to be careful and we need to be prudent, but this is a great time to be at Western, and that’s from the hard work of the people who came before me,” Deakin said. “In the difficult times, in the context of the province and the country, I think we’re going to come out of this stronger.”
But Deakin cautioned the grant reduction $1.7 million is based on projected enrollment on the graduate side, which she said would give Western $2.3 million in incremental graduate funding if the numbers are et.
“If we don’t get those students we don’t get that funding,” she said.
As far as university-wide expenditures, once again utilities top the list with an expected bill of nearly $18.4 million for the coming year, up more than $78,000 from last year. To the delight of Deakin, however, funding for library acquisitions will see an increase of $250,000, to almost $14 million.
Western has been committed, even through very bad times, to continue with transfers to the library acquisition budget,” she said, adding this is not the case at other institutions. “It’s incredible that we do this here.”
Western’s newly created (2010-11) revenue-sharing allocations fund for faculties continues to grow, with $27.6 million available in 2013-14, and an expected $35 million the following year.
“That’s more in the hands of faculties and my belief is the closer you are to the rock face, the better decisions you make,” Deakin said. “So driving money to the faculties is, I believe, the right thing to do.”
Regarding capital projects, the university will see more than $75 million in new construction projects, including $31.8 million for Ontario Hall, the new undergraduate residence; $16.5 million for the expansion and modernization of Talbot College; more than $6.5 million for the Centre for Technology Commercialization at the Advanced Manufacturing Park; and $4.5 million for artificial turf on the sports fields.
Renovations are also expected to begin on converting the former Thames Hall Pool into general use facilities, upgrades to the former Ivey facilities on campus and the Ivey Toronto facilities, as well as continued work on the Physics and Astronomy building.