University of New Brunswick Overview of Finances February 15, 2005
Agenda Where do $ come from Where do $ go Infrastructure Renewal Budget Process
0.9% 6.4% UNB REVENUE Composition 2002-03 ($212M) 12.5% 9.4% 70.8% General Operating Endowment & Trust Sponsored Research Ancillary Capital
UNB 2004-05 Operating Budget Revenue $144.4 million 6.24% 37.65% 56.11% Provincial Operating Grant Tuition Revenue Other
University of New Brunswick Trend in Operating Revenues 80% 60% 40% gov t grants student fees 20% 0% 02-03 01-02 00-01 99-00 98-99 97-98 96-97 95-96 94-95 93-94 92-93 91-92
Provincial Multi-Year Funding Plans For New Brunswick Universities 3 Year 4 Year 2003-04 Actual 3.4% 2004-05 Actual 2.0% 2.0% 2005-06 Possible Amount 4.6% 4.6% 2006-07 Possible Amount 3.2% 2007-08 Possible Amount 3.2% Program Totals 10% 13%
Provincial Multi-year Funding Plans for New Brunswick Universities 3 Year 4 Year UNB Actual 2003-04 Actual 3.4% 2.93% 2004-05 Actual 2.0% 2.0% 1.45%
UNB PROVINCIAL OPERATING GRANT % CHANGE 4.0 3.0 2.0 99-00 00-01 01-02 02-03 03-04 04-05* 1.0 0.0 (1.0) (2.0) (3.0) 96-97 97-98 98-99 (4.0) *excludes advance on 2005-06
UNB Composition of Tuition Income 2004-05 Budget $54 million Fredericton Saint John 11.91 8.09 20.37 1.71 80.00 Undergraduate Graduate International Supplement 77.92 Undergraduate Graduate International Supplement
UNB FTE ENROLMENT 11500 11000 10500 10000 9500 9000 8500 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 Actual Budget
TUITION FEES MARITIME UNIVERSITIES 2004-05 Based on Arts Program % Change Tuition 2003-04 Fees Rank 2004-05 Acadia 7,468 1 6.5 Mount Allison 5,810 2 8.4 Saint Francis Xavier 5,750 3 8.3 University of King's College 5,610 4 7.5 Dalhousie University 5,610 5 7.5 College of Cape Breton 5,260 6 4.8 Université Sainte-Anne 5,250 7 5.5 Saint Mary's 5,170 8 4.6 Group Average 5,210 6.4 Mount Saint Vincent 5,140 9 6.0 N. S. Agricultural College 5,100 10 8.5 N.S. College of Art & Design 5,096 11 4.0 Atlantic School of Theology 4,840 12 10.0 UNB 4,770 13 5.8 Université de Moncton 4,365 14 5.8 UPEI 4,350 15 6.1 Saint Thomas 3,915 16 6.0
TUITION FEE CHANGE MARITIME UNIVERSITIES 99-00 to 04-05 94-95 to 04-05 5 Year Period 10 Year Period $ % $ % UNB 1,340 39.1 2,300 93.1 MARITIME AVERAGE 1,485 39.6 2,515 93.4
AVERAGE UN DERGRADUATE TUITION FEE Provincial Comparisons % Change 03-04/ 02-03/ 99/00-04-05 95-96 - 04/05 2004-05 04-05 03-04 (5 years) (9 years) CANADA 4,172 3.8 7.2 25.4 78.8 Newfoundland 2,606 0.0 (4.5) (22.7) 12.7 Prince Edward Island 4,374 5.8 6.2 40.4 88.7 Nova Scotia 5,984 7.7 6.6 25.0 55.1 New Brunswick 4,719 5.9 6.5 40.9 89.1 Quebec 1,890 1.3 0.8 4.2 11.6 Ontario 4,960 1.0 5.3 21.4 101.8 Manitoba 3,160 0.2 0.3 (9.4) 35.2 Saskatchewan 4,894 5.4 8.4 45.4 88.9 Alberta 4,804 6.5 8.3 29.0 77.4 British Columbia 4,735 15.5 29.0 84.4 100.1 UNB 4,770 5.8 5.7 45.0 82.8
Compulsory Supplementary Fees 2004-05 $650 $600 $550 $500 $450 $400 $350 $300 $250 $200 $150 $100 $612 $541 $411 $321 UNB Maritime Universities MacLean's Comprehensive Group 14
Undergraduate Foreign Differential Fee 2004-05 8,000 7,000 6,000 6,846 6,471 5,000 4,627 4,537 4,000 3,000 2,000 1,000 0 UNB Maritime Universities MacLean's Comprehensive Group 14
WHY DO TUITION FEES GO UP ANNUALLY? Operating costs go up each year University inflation Provincial grant does not increase at the same rate as university inflation.
INFLATION (12 months ended December 31, 2004) All Items Canada 2.1% Education and Reading 3.7% Tuition Fees 4.2% Water, Fuel, Electricity 4.6% Source: Statistics Canada, Consumer Price Index, Dec 2004, Table # 3
Illustration of Relationship between Tuition Fees Increase and Provincial Operating Grant Increase For Tuition Fees Increase to be Provincial Grant Increase 0% 6.75% 2.5% 5.35% 5.75% 3.5% 7.5% 2.5% 10.0% 1.0% Assuming: Balanced Budget Expenditures capped @ 3.75% Enrolment constant
University of New Brunswick 2004-05 Budgeted Operating Expenses ($144.4 M) 9.43% 14.40% Faculties & Departmental 18.40% 57.77% Academic and Student Support Administration Maintenance & Utilities
UNB OPERATING EXPENSE COMPOSITION 23.2% Salary & Benefits Non-Salary Operating 76.8%
MacLean s Comprehensive Group Operating Expenditures (per Weighted Full-time Equivalent Students) 2004 Ranking Funding Ranking - Simon Fraser $10,209 - Victoria 9,322 - Regina 9,065 - Memorial 8,909 - Guelph 8,753 Average 8,417 - Waterloo 8,347 - UNB 7,905 - Windsor 7,904 - Carleton 7,580 - York 7,331 - Concordia 7,259 1 2 3 4 5 6 7 8 9 10 11 GAP to Average 6%
INSTRUCTION & NON-SPONSORED RESEARCH Three-year Average ending 2002-03 as a % of General Operating % 60 59 58 57 56 55 54 53 52 51 50 58.9 UNB 57.3 Maclean's Comprehensive
Instruction and Non-sponsored Research Current model is focused on Academic Quality Higher % allocated to Instruction & Nonsponsored Research Smaller class sizes Lower student to faculty ratios High % faculty full professor National salary averages National Caliber faculty
60 % of Students in Selected Class Size Ranges 1 st & 2 nd Year Level Classes of =<50 2003-04 50 46.62 46.38 40 30 34.66 28.87 20 10 0 UNB Maritime Universities MacLean's Comprehensive Group of 14 Source: MacLean s 2003
Full Professor Ranks as a % of Total Academic Ranks 2003-04 50 43.8 40 30 33.1 34.8 35.1 20 10 0 UNB Maritime Universities MacLean's Comprehensive Group of 14 Source: Statistics Canada, Education Statistics, Salaries and Scales of Full-time Teaching Staff at Canadian Universities, 2003-04
30 Ratio of Full-time Students to Full-time Faculty 2001-02 25 20 20.7 21.7 22.3 16.4 15 10 UNB Maritime Universities MacLean's Comprehensive Group of 14 Source: Statistics Canada, Maritime Provinces Higher Education
LIBRARY Three-year Average ending 2002-03 as a % of General Operating 8 6 6.8 6.2 % 4 2 0 UNB Maclean's Comprehensive
COMPUTING & COMMUNICATIONS Three-year Average ending 2002-03 as a % of General Operating 5 4 4.4 4.0 % 3 2 1 0 UNB Maclean's Comprehensive
ADMINISTRATION & GENERAL Three-year Average ending 2002-03 as a % of General Operating 12 10.9 11.2 10 8 % 6 4 2 0 UNB Maclean's Comprehensive
STUDENT SERVICES Three-year Average ending 2002-03 as a % of General Operating 9 8 8.0 7 % 6 5 4 4.6 3 2 1 0 UNB Maclean's Comprehensive
UNB Total Payments Made to Students $19.0 Number of dollars (millions) $17.0 $15.0 $13.0 $11.0 $9.0 $9.8 $11.3 $12.1 $13.0 $13.7 $16.7 $7.0 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 Source: UNB Financial Services
Scholarships, Bursaries, and Prizes Total Funds $4.5 Number of dollars (millions) $4.0 $3.5 $3.0 $2.5 $2.0 $1.5 $1.0 $1.7 $2.1 $2.4 $2.8 $3.4 $3.5 $3.6 $4.0 $0.5 $0.0 1996-97 1997-98 1998-99 1999-2000 2000-01 2001-02 2002-03 2003-04 Source: CAUBO Financial Statistics, 1996-97 to 2002-03
Total Entrance/Undergraduate Scholarships at UNB Number of dollars (millions) $3.0 $2.5 $2.0 $1.5 $1.0 $0.5 $1.1 $1.3 $1.6 $1.8 $2.3 $2.4 $2.5 $2.8 $0.0 1996-97 1997-98 1998-99 1999-2000 2000-01 2001-02 2002-03 2003-04 Source: Undergraduate Student Awards, Registrar's Office
UNB GRA s, GTA s, UGTA s Operating $3.5 $3.2 Number of dollars (millions) $3.0 $2.5 $2.0 $1.5 $1.0 $0.5 $2.2 $2.7 $0.0 2000-01 2003-04 2004-05
PHYSICAL PLANT Three-year Average ending 2002-03 as a % of General Operating 14 12 10 11.5 11.9 10.2 11.3 % 8 6 4 2 0 UNB Maritime Universities Maclean's Comprehensive Group of 14
UNB FINANCIAL POSITION Annual Net Operating Result 450 300 150 0 (150) (300) (450) (600) (750) (900) (1,050) (1,200) (1,350) (1,500) (1,650) (1,800) (1,950) (2,100) (2,250) (2,400) (2,550) 94-95 95-96 96-97 97-98 98-99 99-00 00-01 01-02 02-03 03-04
University of New Brunswick FINANCIAL CHALLENGES Gap Areas Student Services Scholarships Attracting and retaining quality Faculty Utility Cost Increases Pension Costs Infrastructure Renewal Requirements $1 million over 3 years $1.7 million over 2 years $100 million
University of New Brunswick FINANCIAL STRATEGIES Fund Raising Campaign $60 million Expand other incomes Properties New ventures College of Extended Learning Increase Research funding for spin-offs Planning & prioritization
Infrastructure Renewal UNB Figures and Context Average Age of Buildings 50 45 40 35 30 25 20 15 10 5 0 45 36 23 Fredericton Saint John Canadian Average
Infrastructure Renewal UNB Figures and Context Renewal Needs (non-residence) $108 million Estimated Replacement Value $.5 billion
Infrastructure Renewal UNB Figures and Context Facilities Condition Index (FCI) 25.0 22.0 20.0 17.3 15.0 10.0 11.3 10.0 5.0 0.0 UNB Canada Atlantic Above 10 Unacceptable
Infrastructure Renewal Annual Funding Total $ $ per Student Baseline spending $2 million $167 Spending to hold current status $ 7.4 million $617 Spending required to improve over time $9.6 million $800
Infrastructure Renewal Funding 3-Year Perspective $(millions) Last 3 years actual $16.3 Pro-forma Plan next 3 years $17 22.3 Baseline $6.0 Amount required to hold position $22.8
University of New Brunswick Budget Process PLANS PRIORITIES FINANCIAL PARAMETERS OPTIONS RESOURCE ALLOCATION PROCESS CHOICES BUDGETS -Operating -Capital -Residence RISKS ENVIRONMENT
Factors to be Considered in Budgeting and Tuition Fee Decisions Fiscal Responsibility Accessibility Priorities Competitiveness Quality
Overview of UNB Budget Responsibility Board of Governors Finance Committee President University Management Committee Fredericton Campus Budget Management Committee University-wide Budget Management Committee Saint John Campus Budget Management Committee
STUDENTS INVOLVED IN BUDGET PROCESS Budget Management Committee Faisal Mahmood, Student Union Finance Committee Greg LeBlanc, Student Union Board of Governors Greg LeBlanc, Student Union President Nick Ouellette, Student Union Trevor Richard, Student Representative Council, SJ
QUESTIONS/FEEDBACK Vice-President Academic vpacad@unb.ca Vice-President Finance - vpfin@unb.ca Greg LeBlanc suprez@unb.ca Presentation can be viewed at: www.unb.ca/vpfin/reports.html