1. BRANDON UNIVERSITY 2013 – 2014 Budget Master Slides May 2013

2. The Timing of Our Information Sessions We are slightly later this year in coming to you with information on the budget. Our reasoning here was two- fold: 1.There has been speculation for some months that the government would deal with its own fiscal difficulties by not meeting its 3 rd year commitment to a 5 percent increase to our base budget; and 2.Our decision-making around the budget would be significantly impacted by the valuation of our pension issues with respect to our unfunded liability.

3. We now have information with respect to both of these variables and have adjusted the budget consistent with this information that we are sharing with you today.

4. Our Initial Planning Process 1.Assumed a third year 5 percent increase in operating grant from the government plus CPI tuition; and 2.Took an approach based on the past year’s experience and considered the annual pension valuation.

5. Our Planning Approach is Consistent with BUILD 1.As per our BUILD University plan, our primary focus has been on student success. In addition to new positions created in student success areas over the past two years, we have focused on increasing international student recruitment and on Aboriginal student success in this year’s budget. 2.We have also approved the renewal of faculty positions in light of recent retirements and resignations.

6. 3.We have stabilized the leadership in the University by filling administrative roles that have been operating for some time with Acting leadership. 4.We are attempting to reduce the extent to which we are balancing the budget through the use of carry- forward and surplus. We are only partially successful in achieving this goal in this budget.

7. Academic Renewal The following faculty positions were approved for filling in 2013: Faculty of Arts −5 tenure track positions Faculty of Science −2 tenure track positions −1 two-year term position −1 one-year term position Faculty of Health Studies −5 tenure track positions −4 Instructional Associate positions

8. Non-Academic Staff The following positions were approved for filling in 2013: Administration and Finance −4 th Class Power Engineer (Electrician) - completed Healthy Living Centre −Customer Service Assistant – in progress −Building Service Worker - completed

9. Leadership Renewal Dean of Science – search complete Dean of Education – in progress University Librarian – in progress Associate Vice-President (Student Services and Enrolment Management) and University Registrar – in progress

10. Leadership Renewal Director, Indigenous Peoples’ Centre and Aboriginal Initiatives – search complete Director, International Activities – in progress Vice-President (Academic & Provost) – search complete

11. COPSE Funding Approval Master of Science (Environmental and Life Sciences) −$250,000/year

12. Three Year Plan (Previous) 2011-122012-132013-14 Annual cost increase$5.544 million$1.867 million$1.0 million Surplus previously used2.11.7 Previous temporary adjustment0.92.3 Total requirement5.5444.8675.0 Grants and fees1.6311.4591.8 Surplus used2.1241.6860.6 Budget reduction (P & T)1.7891.7222.6 % reduction4.0%3.8%5.3%

30. Pension Plan Unfunded liability special payment −Est $3.0 million ($3.783 million in 2012) Current service costs −Est $3.1 million ($3.294 million in 2012) Estimated saving $1 million Discount interest rates and investment returns helped Annual valuations required

31. Provincial Budget Operating grant increases −5% per year for three years promised −2.5% for 2013-14 (year three) −Lost revenue $858,900 Tuition Fees −Max increase of CPI (Consumer Price Index) −2013-14 is 1.6% ($5 per course)

32. Balancing the Budget Cost increases total $3.5 million −Includes $1 million pension payment decrease Provincial grant and fees covers 25% of cost increase Salary and benefit reductions save 18% Non-personnel cost reductions save 11% Revenue increases cover 6% Surplus funds cover the last 40%

33. Next Steps Community input Pension valuation Board Budget Committee review and recommendations Board budget workshop Board of Governors approval in May

34. For More Information… Visit the Vice-President (Administration & Finance) site on the web and click on BU Budgets

35. Questions?