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Archive of Budget Updates 

June 15, 2016

2016/17 Budget Update, June 15, 2016

As a follow-up to our message on April 14, we would like to provide an update on the status of the UBC budget.

At the April 14 board meeting, the Board of Governors provisionally approved the 2016-17 budget.  The board acknowledged that the 2014 faculty interest arbitration award, which settled the July 1, 2014 - June 30, 2016 Collective Agreement between the University and the Faculty Association, was larger than anticipated. They asked the administration to develop a revised budget that incorporated the general wage increase for faculty, and to bring it back to the June meeting for approval.

The total cost of the faculty interest arbitration award is $16m for 2016-17. Of that $16m, $4m will be funded by the provincial government’s commitment to fund agreements within the Public Sector Employers’ Council (PSEC) 2014 economic stability mandate for all public sector employers. As detailed in the revised UBC budget, the remaining $12m will be absorbed by UBC’s Faculties. Some Faculties are funding the increase in salaries through an increase in projected revenues. Others will manage the increase through cost reductions, which may include delays in hiring until the financial outlook has stabilized.

At yesterday’s Board of Governors’ meeting, the board passed the revised budget and commended everyone throughout the university, particularly the Faculties, for developing a resolution and presenting a balanced budget. We also would like to take this opportunity to thank the Faculties for their contribution to this process.

The complete budget documents can be found here.

On behalf of the UBC Executive, we thank everyone at the university for their ongoing efforts in the planning and management of the university’s budget.

Angela Redish
Provost and Vice-President Academic pro tem

Andrew Simpson
Vice-President, Finance

Deborah Buszard
Deputy Vice-Chancellor and Principal, Okanagan campus

April 14, 2016

2016/17 Budget Update, April 14, 2016

As a follow-up to our message on March 8th, we would like to provide an update on the status of the UBC budget.

The budget was presented today to the Board of Governors for review and approval.  At this meeting, the Board:

  • thanked everyone in the university for their work in bringing the budget forward; and,
  • was supportive of our strategy to make further investments in key priorities through the UBC Excellence Fund (formerly referred to as the Academic Excellence Fund).

During the meeting, it was acknowledged that the recent arbitration award, which decides the July 1, 2014 - June 30, 2016 Collective Agreement between the university and the Faculty Association, was larger than anticipated. The Board provisionally approved the budget on the basis that our teams will work over the next few months to develop a proposal to accommodate the arbitration award. The proposal will be considered at the June Board meeting.

The complete budget documents can be found here.

On behalf of the UBC Executive, we would like to thank everyone at the University for ongoing efforts on the planning and management of the university’s budget.

Angela Redish
Provost and Vice-President Academic pro tem

Deborah Buszard
Deputy Vice-Chancellor + Principal

Andrew Simpson
Vice-President, Finance

March 8, 2016

2016/17 Budget Update, March 8, 2016

With the 2016/17 UBC Vancouver budget process well underway, we would like to provide an update of progress to date, as well as the path forward.

In recent months, there have been discussions at various levels of the university, around the 2016/17 budget. This included a two-day workshop at which the Executive and Vancouver deans came together to review the challenges, opportunities and budget position of each of the faculties and administrative units.  

As part of the process a large number of proposals were submitted, and these are being evaluated for possible funding next year. The proposals are being considered in a number of forums, including the Senate Budget Committee, the Executive, the Board of Governors and the Council of Deans (which established a sub-committee to review detailed proposals).  

  • The final budget proposal will be presented to the Board of Governors for approval in April. In advance of the board meeting, we would like to share some key elements of UBC’s financial position.
  • Although UBC continues to operate in a constrained funding environment, we are in a more favourable position than last year. The Province of BC (although still to provide UBC with formal budget notification) is unlikely to make further cuts to the operating grants of the universities, and will provide assistance for mandated salary increases. Unfortunately, this still means that any inflation costs (including cost pressures arising from the fall in the Canadian dollar and non-mandated salary increases) have to be either absorbed or covered by other sources of revenue growth.
  • Growth in revenue from domestic tuition is capped within the government’s fee regulations, limiting any increase to 2%.
  • International tuition rates, for new-to-UBC first-year students, are increasing (up to 15%) as a result of a review of UBC rates compared to peer universities. This will provide some discretionary resources to meet a number of cost pressures, as well as establishing the UBC Excellence Fund, focused on strategic initiatives to support excellence in research, teaching and the student learning experience. The Provost’s office is working with VP Students and VPRI to determine allocations from the UBC Excellence Fund.
  • The Province has provided additional funding for routine capital expenditure (including deferred maintenance) in 2015/16 and has indicated support for further enhancements to this funding over the next three years. If approved, this will enable an important improvement in the underlying condition of many of the university’s buildings and operations.

Many central administrative units absorbed significant budget reductions in the last year, and most of these flow into 2016/17. As part of an ongoing commitment to continuous improvement, UBC will continue to review its operating and administrative processes and systems. This includes considering a benchmarking programme that will assist us in better understanding the effectiveness and efficiency of many current functions and operations.

We would like to take this opportunity to thank all those who have taken part in this year’s budget process, as well as those who have implemented cost reductions in the last year. We will provide further updates over the coming months. Further information about UBC’s financial reporting can be found here.

Angela Redish
Provost and Vice-President Academic pro tem

Andrew Simpson
Vice-President, Finance

 

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