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Budget

Budget model initiative

Last updated: October 17, 2025

UVic is in the midst of a multi-year initiative to build and implement a new, principles-based budget model that aligns resources more closely with strategic priorities.

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—and why we need to change

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.

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.

Process and milestones

In fall 2022, the Vice-Presidents Academic and Provost and Finance and Operations initiated a review of UVic's budget model to assess its effectiveness and look for enhancement opportunities. A Budget Model Working Group engaged in research and consultations and published a summary of findings and recommendations in summer 2023. The summary includes a set of budget model principles and values to underpin decision making.

Through this process, most UVic leaders indicated that they were open to a change or refinements to UVic's budget model. Many universities across Canada have been through or are engaged in similar exercises.

A Budget Design Committee formed in 2023 to further advance this work, culminating in a December 2024 report and recommendations.

Project timeline and milestones

Phase 1: Budget Model Working Group (2022–2023)

  • Oct. 2022 to May 2023: Researched and consulted with comparator universities, including those that have undergone budget model changes, to learn and seek advice. 
  • Dec. 2022 to April 2023: Consulted academic and non-academic leaders at UVic, including Deans' Council, Integrated Planning, Executive Council portfolios, Chairs and Directors, and others. We heard what's working well, what isn't, and values and principles that should underpin our model.
  • April to May 2023: Developed a set of principles and values based on what we've learned and heard, which was presented to Deans' Council and other leaders for feedback and revised as needed.
  • May 2023: Prepared a summary of findings and recommendations for the project sponsors based on research and consultations.
  • June 2023: Executive Council endorsed the summary of findings and recommendations. Findings were shared with Deans' Council and Integrated Planning.
  • July to Aug. 2023: Updated leaders on the key findings and outcomes of the working group as well as next steps beyond the scope of the working group.

Phase 2: Budget Design Committee (2023–2025)

  • Sept. 2023: Regular meetings of Budget Design Committee begin, to continue until the end of phase 2.
  • Jan. to May 2024: Additional consultations with budget leaders, including deans, chairs and directors.
  • June 2024: Committee progress report to project sponsors and Executive Council that includes recommendations on revenue flow, supporting policies, resources and strategic funds.
  • June to Nov. 2024: Initial revenue flow modeling and analysis. Process to continue into phase 3 and 4, as adjustments will be needed once the model is put into practice.
  • Nov. 2024: Drafting of a report and recommendations for review and endorsement by Executive Council, including foundational budget model elements and implementation strategies.
  • Dec. 2024: University budget model retreat with President's Leadership Council, to discuss the draft report and recommendations, proposed model, and implementation. Report and recommendations finalized following the retreat.
  • Jan. to Feb. 2025: Additional engagements with budget leaders, the Senate Committee on University Budget, the Board of Governors and others.

Phase 3: (2025+) - current phase

  • 2025+: The Budget Model Working Group will continue consulting, modeling, and supporting the development of related policies. This phase will also help us to prepare for the implementation of the shadow budget in the future.
  • Aug. – Sept. 2025: Consultations with each Dean to determine programming and revenue opportunities as well as cost drivers in each faculty.
  • Sept. – Oct. 2025: Engagement with the Senate Committee on University Budget.
  • Sept. 2025 - TBD: Regular engagement with Deans’ Council, Executive Council and Board of Governors.
  • Nov. 2025: Budget Model Information Session for faculty and staff
  • Dec. 2025: Second annual budget model retreat with President’s Leadership Council

Phase 4: Shadow budget (TBD)

  • Timing and scope still to be determined. The concept of a shadow budget process is that a new model runs alongside the current model, to determine its viability without changing outcomes. This also provides opportunities for refinements and socialization. Based on the findings from the Budget Model Working Group, the shadow budgeting process can last several years.

Phase 5: Implementation of new budget model (TBD)

  • Timing and scope to be determined based on the shadow budgeting process. Based on the findings from the Budget Model Working Group, implementation can take several years and require a smoothing phase.

Future budget model