Message from President David Turpin: June 26, 2012

At the March Board of Governors meeting, the Board approved the budget framework for 2012/2013. As usual, the document also outlined anticipated budgets for the next two years, i.e. 2013/2014 and 2014/2015.

In order to balance the 2012/2013 budget, a 1.5 per cent overall budget reduction was implemented. For 2013/14 and 2014/15, budget reductions are estimated in the range of 2 to 4 per cent. We need to work with a range because of uncertainty associated with inflationary costs, anticipated compensation changes and the risk of provincial grant reductions.

Whenever a budget reduction has been required, it has been the university’s practice to provide as much notice as possible. This provides the opportunity for long-term planning, allowing us to minimize any negative impact on quality, capacity or services and to explore options for process improvement, increasing revenue or reallocations. More notice also reduces the need for layoffs, as it may be possible to use existing vacancies or known retirements.

Given that we have achieved significant administrative and operational efficiencies over the last few years, this will be a challenging process.

In keeping with our approach to provide as much notice as possible, while recognizing that there are uncertainties, I have asked all VP portfolios to do the following by 31 October 2012:

• plan for a 4 per cent reduction in your operating budget in 2013/14
• develop plans for a further reduction of up to 4 per cent in 2014/15.

For 2013/14, it would be prudent for units to implement reductions as soon as it is reasonably possible. This will maximize the savings and free up one-time funds that can be used to assist in transitioning.

In recognition of the greater uncertainty for 2014/15, units are asked to plan for those reductions, but implementation, if required, would await confirmation of our budget at a future date. Individual areas may decide to proceed with the implementation of those plans and, in the event reductions are not required, reallocation to areas of highest priority would be possible.

Within each vice-presidential portfolio, there may be differential allocations. The VPs will communicate directly on budget planning in their area. During this period of budget pressures, new faculty or staff positions and vacancies can only be advertised or filled with the recommendation of the AVP/Dean/Director and the approval of the appropriate vice-president. In addition to activities within each portfolio, initiatives are underway to identify potential institution-wide savings that could reduce the need for future budget reductions.

While the financial pressures are real, it is important for each of us to remain focused on our core mission and to work to continue UVic’s tradition of excellence.