presidents workshop 01.2012
DESCRIPTION
Presentation to the Canadian Association of University Teachers' Presidents Workshop on January 15, 2012. Overview of university and college finances in Canada for 2012TRANSCRIPT
University and College Financial Outlook, 2012
CAUT President’s Workshop
David RobinsonAssociate Executive Director
January 15, 2011
Overview
• The fiscal and economic climate• Key PSE revenue drivers:
– Federal cash transfers & provincial operating grants
– Sponsored research funding– Enrolment
• Key PSE expenditure drives:– Focus is on salaries, but this hasn’t been a
major cost driver
Fiscal and Economic Climate
Net gov’t debt (% of GDP)
0%
20%
40%
60%
80%
100%
120%
Canada US Germany UK France I taly J apan
2007 2010
Government deficits, 2011 (% of GDP)
0%
5%
10%
15%
Germany I taly Canada France UK US J apan
Net debt as % of GDP
-20%
-10%
0%
10%
20%
30%
40%
50%
60%
AB SK BC MB PE NB Fed. NL ON NS QC
2007 2011
Budgetary balance as % of GDP
-6%
-4%
-2%
0%
2%
4%
6%
AB SK BC MB PE NB Fed. NL ON NS QC
2007 2011
And now the bad news
• Weakening economic outlook, but austerity not counter-cyclical stimulus is the order of the day
• Federal gov’t to limit total program spending growth to 2.2% per year
• Total $15 billion in cuts over 4 years ($4 billion more than anticipated)
• And….continuing global economic uncertainty
Weakening growth
0.0%
0.5%
1.0%
1.5%
2.0%
2.5%
3.0%
3.5%
Budget 2011 TD CIBC RBC ScotiaBank BMO PBO IMF
2011 2012 2013
Fiscal impact
• Decline of $10 billion (0.5%) of nominal GDP = drop of approx. $1.5 billion in federal revenues
• 2012 forecast downward revisions = approximately $4 billion in reduced revenues
• What impact on PSE finances?
Uneven exposure to Euro crisis
0%
2%
4%
6%
8%
10%
12%
14%
16%
NL NS PE NB QC ON MB SK AB BC
% exports to Eurozone
University Revenues
Federal PSE Cash Transfers ($ billions)
2.44
3.23 3.33 3.43 3.54 3.65
0
1
2
3
4
2007-08 2008-09 2009-10 2010-11 2011-12 2012-13
Federal PSE Cash Transfers (% of GDP)
0.00%
0.10%
0.20%
0.30%
0.40%
0.50%
0.60%
University Revenues, $2008
$0
$5,000,000
$10,000,000
$15,000,000
$20,000,000
$25,000,000
$30,000,000
00
0's
Operating Revenues, $2008
$0
$2,000,000
$4,000,000
$6,000,000
$8,000,000
$10,000,000
$12,000,000
$14,000,000
$16,000,000
$18,000,000
00
0's
Operating Revenues ($2008)
0
5,000,000
10,000,000
15,000,000
20,000,000
25,000,000
30,000,000
35,000,000
00
0's
Provincial operating grants Tuition fees
University enrolments 2010-11(% change)
Undergraduate Graduate
Canada 3.6 4.0NF and Labrador 0.7 4.8PEI 3.0 17.6Nova Scotia 3.4 6.2New Brunswick 1.0 1.9Quebec 4.4 3.2Ontario 3.8 3.6Manitoba 1.8 1.0Saskatchewan 1.8 6.6Alberta 2.8 4.4British Columbia 4.5 5.8
Research Funding
Federal research grants, $2008
$0
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
$3,500,000
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
00
0's
Sponsored research funding, $2008
0
100,000
200,000
300,000
400,000
500,000
600,000
700,000
800,000
900,000
00
0's
SSHRC NSERC CIHR CFI
Federal Research Funding
Granting Council Base Funding, 2007-2012 (constant 2010 dollars, millions)
2007-08 2008-09 2009-10 2010-11 2011-12 % change(2007-12)
SSHRC 383.7 358.1 350.4 342.5 342.6 -10.7%
NSERC 1057.9 1051.8 1070.6 1050.7 1044.8 -1.2%
CIHR 1017.8 989.8 1001.8 980.8 976.3 -4.1%
Indirect Costs
327.8 335.7 330.9 322.4 325.9 -0.6%
Total 2787.2 2735.4 2753.6 2696.4 2698.6 -3.2%
University Expenditures
Academic rank salaries as % of operating expenditures
25%
27%
29%
31%
33%
35%
37%
39%
41%
Operating expenditures by category (% of total)
0% 10% 20% 30% 40%
Academic rank salaries
Utilities
Other instruction
Student assistance
Benefits
Capital
Staff and adminsalaries
Other
1998 2009
% change in op. expenditures, 1998-2009
80.0%
92.2%
99.3%
101.9%
113.7%
118.7%
160.5%
176.5%
342.4%
556.9%
0% 100% 200% 300% 400% 500% 600%
Academic rank salaries
Utilities
All salaries and wages
Other
Staff & Admin salaries
Total Operating
Benefits
Other instruction
Student Assistance
Capital financing
Net balances FY 2009 ($000s)
-70000
-60000
-50000
-40000
-30000
-20000
-10000
0
10000
20000
Alber
ta
Que
en's
SFU
Regin
a
Tren
t
Nip
issing
Leth
brid
geUN
BW
LU
Win
npeg
SMU
Wat
erlo
o
Long-term debt per FTE student
$0
$5,000
$10,000
$15,000
$20,000
$25,000
Expendable resources per FTE student
-$6,000
-$5,000
-$4,000
-$3,000
-$2,000
-$1,000
$0
$1,000
$2,000
$3,000
$4,000
$5,000
$6,000
$7,000
Some concluding thoughts
• Wide variation in financial health of institutions
• Governments and employers using the broad fiscal and economic climate to push austerity and roll-backs
• Need to really investigate the fine print of your institution’s specific financial situation based on the broad range of drivers: operating grants, tuition revenues, debt, and expenditure choices