March 13, 2013

Campus ForumUniversity Budget

Enterprise and Advanced Education

• Ministry budget reduced by 3.6%

• Operating funding to post‑secondary sector reduced by $147 million, or 6.8%

• Dispensation of time for budget and CIP submission extended to May 31, 2013

• Results Based Budgeting

PROVINCIAL BUDGET 2013

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Ministry Operational Expense($million)

2012-13Forecast

2013-14Estimate

Percent Change

Support for Post‑Secondary Institutions $2,162 $2,015 (6.8%)

Student Aid 157 211 34.4%

Other Support for Adult Learning 120 129 7.5%

Innovation & Economic Competitiveness 215 204 (5.1%)

Apprenticeship &Workforce Strategies 95 89 (6.3%)

Ministry Support Services 38 39 2.6%

TOTAL $2,787 $2,687 (3.6%)

Source: Provincial Operational Plan, Budget 2013

PROVINCIAL BUDGET 2013

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Impact to Campus Alberta Grant

• elimination of 2% commitment ($12 million) to increase grant for 2013-14

• additional 7.2 % decrease ($43 million) to grant for 2013-14

• uncertainty in future changes to grant

UNIVERSITY OFALBERTA

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OPERATING GAPU OF A

Financial Impact ($’000) 2013-14

Loss of 2% commitment $12 million

Additional 7.2% reduction 43 million

Structural deficit approx. 2%* 12 million

Operating Gap, 2013-14 $67 million

* gap between average growth in revenue (2%) versus expense (4%)

compounds in absence of structural change

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ConsolidatedBudget Scenario ($’000)

Budget2013-14

Proposed Budget (as per draft CIP) $ (18,033)

Budget Adjustment:

Elimination of 2% Grant Increases (11,842)

7.2% Reduction to 2013-14 Grant (43,000) 

Revised Deficit $ (72,875)

U OF A SCENARIO(POST BUDGET 2013)

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2008-09 2009-10 2010-11 2011-12 2012-13(f) 2013-14(f) 2014-15(f) 2015-16(f) 2016-17(f)$0

$50

$100

$150

$200

$250

$300

$350

$400

$35

$90

$138$168

$205

$238

$274

$310

$347

$39$69

$84$109

$127$150

$167$183

$198

Salary Settlement, Merit & Benefits

Grant & Tuition

$ M

illi

on

CUMULATIVE INCREASE FROM PRIMARY REVENUEAND EXPENSE ITEMS (OPERATING)

STRUCTURAL PROBLEM(pre Budget 2013)

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U OF A STRATEGIES

• Immediate next steps

• Balanced approach based on set of principles, e.g. excellence, consultation, etc.

• Structural changes:o Revenue (e.g. new streams)o academic programmingo administrative services (across institution)

• Full implementation over 3 years

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Questions