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Board of Governors
It won't be business as usual, says president
At its Jan. 14 meeting, Board of Governors was updated on the University's multi-year plan to address the structural deficit. President Alastair Summerlee told the board that the current economic situation has prompted serious discussions about changes to the University, and that it will not be “business as usual.”
Because of the provincial government flatlining funding for at least the next two years, U of G must increase the planned reductions from five per cent to 7.5 per cent in 2009/10 and 2010/11 to eliminate the structural deficit as planned, said Summerlee.
Governors were informed of the various measures being taken to implement the multi-year plan, including a hiring freeze, changes in delivery of programs and course offerings, and reductions in operating expenses.
Some capital projects originally scheduled for 2009/10 have been deferred to future years in light of the need for constraints required by the University's current financial challenges.
Project priorities had been established using various factors, including unforeseen events (e.g., breakdowns), risk assessment and restrictions on available government funding.
Board members were updated on the status of ongoing major capital projects, including the five-year student housing plan, the 2009/10 capital projects as part of the 10-year deferred maintenance and utilities capacity plan, and the proposed design for the OVC primary health-care centre.
The current economic situation has also affected the University's major-gift fundraising results. Governors were told that fundraising discussions with current and prospective donors continue, and the University is poised to secure gifts once the financial climate improves. In addition, Alumni Affairs and Development is increasing its attention on the development of legacy gift opportunities.
Summerlee said U of G is in a better position than many other Ontario universities because of its strategic planning activities such as integrated planning, institutional branding and campaign preparation. This has enabled the University to set differentiated rather than across-the-board targets for budget reductions reflecting our institutional priorities.
B of G was also informed that the University administration and the U of G Faculty Association (UGFA) have discussed revisions to the treatment of intellectual property to be included in the UGFA collective agreement. These changes have been ratified by the UGFA and will now go forward for board approval.
Governors were also briefed on government advocacy at the federal and provincial levels, particularly initiatives related to provincial funding requirements for pension plans. They were told that government representatives seemed very attentive to the serious financial implications for universities of their current challenges arising from funding defined-benefit pension plans. But the board was told the relief from any provincial changes would be gradual and limited. Necessary long-term changes would require amendment to current negotiated employee agreements and can therefore be pursued only through discussion at the bargaining table.