Funding & current model
UVic manages its approximately $900 million budget using five distinct funds: ancillary operations, specific purpose, capital, sponsored research and general operating. The general operating fund, which provides most units across campus with annual base budgets and non-recurring funding, is the focus of the budget model initiative.
Operating budget
The university’s operating budget represents a significant portion of our institution's revenue and is funded through a few sources, though provincial grants and student tuition account for approximately 90% of revenue. The provincial grant is based on a set target of domestic students and will not increase if we enrol more than the targeted amount.
UVic receives provincial grants from the BC government and student tuition to enrol, educate and support students, and puts students at the centre of decision making to recognize these accountabilities to our primary funders (government and students).
Learn more about UVic's operating budget.
What is a budget model?
A budget model is a framework or system used to guide leaders in making budget decisions and allocating financial resources. Budget models outline how revenues are distributed and how expenses are managed with the goal of supporting institutional priorities, financial sustainability and accountability.
There are many different types of budget models, with no one right budget model for all institutions.
Ultimately, budget models don’t make decisions, people do. Each model encourages or discourages specific kinds of behaviour, but all resource allocation decisions are made by people. The impact of the budget model depends more on the decision makers – and the quality of decision making – than on the model itself.
Current budget model
Incremental/historical budget model: In this model, each year’s budget is based on the previous year’s budget. Incremental increases are requested and then provided to units based on availability of funds and priority. Other than these requests, there are limited opportunities for faculties and service units to increase their budgets.
While UVic has made modest refinements in recent years to allow for professional program revenue sharing and position control flexibility, we have not made any major changes to our model in decades.
Why we need to change
Though this model has provided stability and predictability in the past, it has not kept current with the evolving needs of the university and the post-secondary landscape. Over time, UVic has grown and become more complex, requiring a budget model that can better adapt to and support operations, aspirations and sector changes.
Rather than ceasing or stepping back and considering alignment with strategic priorities and values, incremental models tend to build on existing offerings and services. This type of additive budgeting is increasingly challenging to sustain in periods of constrained or no growth. Most universities have moved or are moving away from an incremental model.
Based on over three years of consultations, there is considerable appetite to adjust UVic’s budget model, including to empower revenue generation and diversification, share in that revenue, better manage costs, and make more strategic investments to enhance our profile as a leading Canadian research university.
Consultations also indicated that our current base budget may not be an accurate reflection of core activities in units. UVic’s long-implemented incremental budget and process has meant that units tend to grow in base through requests, though not necessarily in an equitable way or based on performance metrics or other evidence-based measures.