We Can Work Together to Address Challenges
The past year has certainly been a challenging one. Every department, program, activity and unit across campus has felt the impact of the budget cuts that had to be implemented as part of the multi-year budget plan to remove our structural deficit.
So what do we have to look forward to in 2010? Another year of budget reductions as part of our commitment to the multi-year budget plan, but also some added pressures.
Unless the government changes the accounting regulations on pensions, we will be forced to make multi-million-dollar contributions to our pension fund in the middle of the year. This will affect our ability to operate as an institution, and in the longer term, we will have to change our pension structure to survive.
At the same time, the provincial government is facing a multi-billion-dollar deficit, and we know there are calls for expenditure restraint in a number of ministries. We already know the Ontario Ministry of Agriculture, Food and Rural Affairs (OMAFRA) budget will be reduced for 2010/11, but we are working closely with ministry staff to minimize the impact of any budget cuts.
We don’t know about the possible impact on the Ministry of Training, Colleges and Universities budget. The government has indicated that it will renew the funding framework for the post-secondary system, but in the current economic climate, increases in funding are more likely to be focused on the outer years of the new framework.
One of our challenges is that any funding announcements and any conditions on tuition will be brought forward only in the provincial budget, which is likely to be in late March.
Once again, therefore, we will be bringing forward a preliminary draft budget making a number of assumptions about the funding available from government.
And once again I am asking members of the University community for their patience, help and understanding as we do our best to put together a preliminary budget to take to Board of Governors in the spring.
As always, we are committed to making the budget process open and inclusive. We have already had discussions among senior administration members and student leaders about the budget and the upcoming planning process.
By month’s end, all departments and units will have submitted their integrated planning revisions to the provost. These changes, along with the University’s position for tuition, ancillary fees and residence fees, will be included in the planning and budget materials that will be shared across campus. By mid-February, the Finance Committee will begin developing a preliminary operating budget that includes risks and sensitivities as well as our tuition assumptions.
On Feb. 22, provost Maureen Mancuso and I will host a campus-wide “Rumour Mill” on the budget and will answer questions from the community.
In March, a preliminary budget, including the OMAFRA budget and the integrated planning updates, will be distributed to members of Senate. That same month, we will hold another budget-focused “Rumour Mill.” In April, the preliminary budgets will be presented to B of G.
Against this backdrop, the University continues to rise — literally. A number of construction projects that were needed to maintain and enhance quality are nearing completion. In addition, there will be announcements in upcoming weeks about new gifts made to the University as part of our ongoing fundraising efforts.
I realize it’s sometimes difficult to understand the need to deal with changes so we can balance the operating budget as we continue to build and renovate and do fundraising. But it’s important to keep in mind that funds for construction projects and those garnered from contributions cannot be used towards the operating budget.
As I’ve said before, this will be a difficult time for the entire institution, but budget challenges are nothing new for this university. Time and time again, we’ve shown that we can work together to address challenges and preserve the quality of the Guelph educational experience.
