News Articles
Board of Governors
U of G closes gap in operating budget
At its first meeting of the new year, B of G was informed that important progress has been made toward achieving a balanced budget for 2007/2008, and the board approved a revised Ministry of Training, Colleges and Universities (MTCU) operating budget.
Members were told that Guelph has managed to close a “gap” of $950,000 in its current operating budget, largely because of higher-than-anticipated graduate enrolment. In addition, the provincial government's decision to fully fund enrolment increases at the University of Guelph-Humber will result in higher revenue than budgeted, and Guelph-Humber expects to have a surplus of $4.6 million in this fiscal year.
But challenges for the 2008/2009 MTCU operating budget remain, especially uncertainties about key government allocations, the impact of the Ontario Ministry of Agriculture, Food and Rural Affairs (OMAFRA) contract negotiations, and the current $14.3-million structural deficit.
B of G was advised that, like last year, the operating budget will be presented at the June board meeting to ensure it is based on as much certainty as possible.
To make sure that consideration of tuition and other student fees occurs while students are still on campus, however, the board will look at those components of the budget at its April meeting, along with the ancillary budgets.
In other business, B of G was updated on decisions made surrounding pension plan valuations. The University prepared recent filings for its pension plans that recognized $85 million of contributions in order to eliminate solvency deficits in the plan. The result is a $50-million debt in the operating budget that will be repaid from future operating cash flows. This was a tactical decision designed to mitigate higher contributions based on 2006 valuations.
B of G also approved changes to the wording of the University's pension plans text so the language is consistent with negotiated improvements concluded with the Exempt Group and USW Local 4120 members.
The master plan for athletics and recreation, which will guide future development of the University's athletic facilities and offerings, also got B of G's nod. Board members were advised that specific projects would come forward for their consideration, which is standard for all major capital projects.
In addition, B of G gave the go-ahead for repairs and improvements at Macdonald Institute. The 103-year-old building's brick parapets (the wall along the edge of the rooftop) and some of its other walls are in dire need of repair, and the building's historical portico and terrace are in need of restoration, the board was told. Construction is scheduled to start in the spring of 2008 and to be completed by year's end.
Members were updated on Guelph's advocacy efforts, including seeking relief from provincial requirements for a wind-up valuation of University pension plans and emphasizing the importance of the OMAFRA contract to provincial leaders.
The board also heard a presentation on the success of U of G's enriched student learning initiatives, during which two students shared their positive learning experiences.