Board of Governors

Preliminary MTCU Budget Gets Board Approval

Board of Governors approved the University's preliminary 2006/2007 Ministry of Training, Colleges and Universities operating budget during its April 19 meeting.

The budget, which had been discussed at a number of public town hall and Senate meetings previously, is about $1 million short of being balanced due to inflation costs outstripping expected revenues, but it's hoped the gap can be closed through various adjustments during the coming fiscal year.

President Alastair Summerlee told board members that putting the budget together was particularly trying this year, with no government money for inflation and late confirmation of government grants. Significant costs associated with deferred maintenance and a pension “windup” requirement also posed challenges. He said making up the shortfall required the University to make some difficult decisions, including raising tuition as allowed under the new provincial framework. But all budget decisions were made in an effort to minimize the impact on positions and to preserve quality where possible, he said.

Raising tuition, including tuition for new international students, which is not regulated by the provincial government, will bring in about $3.7 million in revenue, board members learned. Tuition for current international students will be frozen. Summerlee said that, even with the increases, U of G's tuition for international students will remain among the lowest in the province. He also said the money Guelph collects in tuition for international students will still be less than half of what it receives for domestic students.

Governors made it clear they were approving a tuition increase for only the 2006/2007 budget and that any tuition increases in subsequent years would have to come to the board for consideration.

Student governors, along with the Student Budget Advisory Group, expressed concern that because of the late timing of the provincial budget announcements, students did not have adequate time to review the budget and provide input. They also said it's unfair to ask students to pay more tuition when cuts are being made that will affect services, a sentiment that was echoed by some other governors.

Summerlee said campus-wide reductions have been made to deal with inflationary costs, due mostly to pension and benefit increases, and that the University will work to avoid future across-the-board cuts.

B of G also approved preliminary budgets for the Ontario Ministry of Agriculture, Food and Rural Affairs, the University of Guelph- Humber, the University Centre and ancillaries.

In other business, the board approved disbursing $1.5 million from the Heritage Fund to the Voice Over Internet Protocol project. The fund, made up of proceeds from leasing the lands owned by the University, is used to finance strategic one-time investments.

The board also heard a presentation on the College of Arts by outgoing dean Jacqueline Murray.