1. 2011-12 Budget Report ECC March 9, 2011

2. Fiscal Context Funding for higher education is flat, and decreasing in many jurisdictions Regulated provincial tuition framework continues Enrolment demand remains strong at UTM Pension challenges: like almost every other Canadian and US public sector institution with Defined Benefit pension plan

3. Overview Balanced budget for 2011-12; Gross ‘Y’ $171.6m (Ancillaries ‘Y’ of $23.4m not included) Continue to pay down accumulated deficit @ $3m/yr High = $20m; Now = $14m; 2015/16 = $0 Fiscally prudent & responsible budget enables us to manage well relative to other academic and central divisions Continuing uncertainty: (i) compensation settlements in new regulated provincial environment; (ii) pension debt

4. Enrolment Total UofT  Planned growth of 2500 students by 2015-16 to 81,000 (69,400 FTE) St George A&S  Decrease of 1200 full time students UTM and UTSC  additional growth planned but dependent on space capacity MTCU caps on domestic graduate and UG spaces International enrolment planned to increase across many divisions

5. FTE Enrolment at the University of Toronto 2000 - 2015 UTM UTSC

6. International Enrolment as a Proportion of Total Enrolment

7. Revenue category 2011-12 $M Operating Grants 4.4 Tuition – tuition and enrolment volume 14.1 Other (endowment, investment and application fees) 0.1 Total 18.6 Incremental Revenue over 2010-11 2011-12 New Revenue - UTM Critical need to increase government support for per-student funding and student aid

9. Academic Budgets Gross revenue Net revenue to academic divisions University-wide expenses Student aid University Fund

10. Expense Careful controls on spending Base and OTO cost containments continue: –3% base across central divisions –% varies across academic divisions

11. Gross to Net (Operating) Gross: $171.6 Less:UWC($28.7) UF($16.8) St. Aid($ 6.9) Other($ 1.3) Add back UF$ 4.9* Net:$122.8 *steady improvement, differentiated

12. Pension Problem Estimated solvency deficit ~ $1billion Based on certain conditions, government may approve plan to amortize over 15 years (instead of 5 years) IF extended amortization period not approved, will face $200M per year pension special payments

13. Pension Impact at UTM Historically, paid about $2m/year toward debt 2011/12 will pay an additional $2.9m (total of almost $5m) Included in UWC of $28.7m Opportunity costs ($5 + $3 debt payment) significant Town-hall meeting: April 1 st, 9 – 11 v/c tie-in

14. Summary Sound Budget Strategy Avoid Return to Debt Spiral Prospects are Good But Money is Still Tight

15. University Wide Costs $425M