2010/ /12 Budget Town Hall May 25, 2010

2010/11 Government Grant ($ in millions) E XPECTED Base Transition and Growth Total Grant Anticipated $100.8 $ 87.6 $ $6.0 one time Grant remains at $87.6 million (no one time) for 2011/12 $13.2 A NNOUNCED 2010/11

The Budget Challenge 1)Adjust the enrolment plan based on the 2010/11 funding 2) Develop a two year sustainable and balanced budget 3)Address the shortfall created over the two years as costs continue to increase while grant and tuition revenue is relatively flat

Budget Principles 1.Ensure resources are in place to support all in progress degree students. 2.We must preserve the planned expenditures on “transition” issues in order to continue to meet CAQC degree implementation requirements. 3.We will not increase tuition beyond the already agreed and board approved levels for 2010/11

Budget Principles 4.We will not add more students to get tuition revenue in order to meet budget shortfalls. 5.We can only fund permanent/base expenditures from permanent/base resources... one time resources can only fund one time expenditures.

Budget Principles 6.Every effort will be made to avoid position eliminations that would result in layoffs, although resource “reallocation” could result in position changes. 7.All budget decisions will be guided by the focus on student success and satisfaction

Key Budget Assumptions 2010/112011/12 Grants0% Tuition1.5%0% Revenue Generating Maintain existing contribution margins Salary (COLA)0% Grid Steps/Benefits3% Supplies & Services (Inflationary Adjustment) 0%

Institutional Priorities Budget and Facilities Sustainable Budget, Library and Learning Centre, Centennial Campaign Update Plans Academic Plan, Student Services, Enrolment Mgmt. People Employer of Choice, Recruitment and Retention, Celebrate

Budget Shortfall 2010/11 to 2011/12 (in millions) Draft #1 Budget Draft #1 Budget Estimated Shortfall- Cumulative (1.4)(6.3)

Budget Strategy – Step One Revised Enrolment Plan 2008/09 Actual 2009/10 Projected 2010/11 Projected 2011/12 Projected 2012/13 Projected 2013/14 Projected FLE- original7,8478,2128,6959,4879,6309,649 FLE- revised7,8478,2128,0268,1467,8287,358

Budget Strategy -Step Two Shortfall Strategy  $5 million already invested in 2010/11 to mitigate the financial shortfall  $6 million one- time grant used in both 2010/11 and 2011/12 to support degree completers  Reserve of $1.4 million is created from 2010/11 operations to fund one-time costs in 2011/12  $1.1 million (one time) to fund scholarships to allow endowments to fully recover from investment losses

Budget Strategy -Step Two Shortfall Strategy  Revenues targets adjusted in earned revenue areas  $2.5 million set up as a vacancy contingency to reduce the salary budget  A 18.5 vacant positions were eliminated – no layoffs  Non-salary expenses were carefully reviewed by all budget units and reduced (e.g. printing costs, meeting expenses, MRU sponsored events, utility costs, maintenance contracts, etc.)

Financial Plan 2010/ /12 (in millions) Proposed Budget Proposed Budget Revenue Expense Net Excess (deficiency) 1.4(1.4) One – time reserve allocation to address flow through students (1.4)1.4

Budget Projections by Category 2010/11 (in millions) Centrally Funded Credit Programs and Services Budget Earned/Directed Revenue Programs and Services Budget Externally Funded Research Budget Total Revenue Expense Net Excess (deficiency) (.4)2.2(.3)1.4 Transfer to Reserves for 2011/12 (1.4)

Budget Projections by Category 2011/12 (in millions) Centrally Funded Credit Programs and Services Budget Earned/Directed Revenue Programs and Services Budget Externally Funded Research Budget Total Revenue Expense Net Excess (deficiency) (3.2)2.2(.3)(1.4) Transfer from Reserves from 2010/11 1.4

Capital Budget $4.5 million for capital replacement and library acquisitions $1.3 million for debt payments for the residence and capital leases $3.2 million in deferred maintenance funding Will be pursing funding for the new Library and Learning Centre in 2011/12

Key Assumptions  Provincial funding levels for 2011/12  Enrolment targets  MRFA contract negotiations  Capital Funding Gap continues to be an issue

Budget Timelines Budget Town Hall – May 25 th Budget Approval – Board of Governors May 31 th Approved Budget documents will be put on My/MRU web site