2015/16 budget framework approved

The University of Victoria's Board of Governors has approved a $338-million balanced operating budget for 2015/16 that focuses on student support and areas of enrolment growth.

Budget pressures continue for the university with a decrease in the provincial operating grant, following two years of reductions, and tuition fee increases limited to two per cent while the costs of salaries, utilities and library acquisitions continue to rise. This creates a long-term financial sustainability challenge as costs are expected to continue to rise at rates greater than revenue increases.

While financial sustainability challenges are expected to continue, UVic’s financial picture has improved substantially from projections in 2014/15 due to significant growth in international students. Without that increase in enrolment, UVic would be facing a budget shortfall this year of $1.3 million and similar shortfalls in the next two years of the Planning and Budget Framework’s three-year planning cycle.

The areas of focus for aligning resources and priorities are enhancing the student experience and student success, augmenting the academic resources and student services for international students while being mindful of the uncertainty of future enrolment in this area, and strategic initiatives supporting growth in areas of student demand such as engineering, science and social science.

The budget includes a request for approval for an increase in student residence fees for 2015/16 and proposed increases for the next eight years required to fund renewal of our aging residences with investments such as new roofs and mechanical systems.

The board’s vote March 31 followed a discussion by board members about the need for the work to ensure the health and safety of students as well as concern about the affordability of post-secondary education. It was noted that a new bursary is being funded by Residence Services for students living in residence who have unmet financial need.

As an ancillary service with no government funding, Residence Services are operated on a cost-recovery basis. Residence fees pay for the construction and operation of student housing.

Currently 30 per cent lower than comparable universities across Canada, UVic’s fees are anticipated to still be 14 per cent lower when the renewal program is complete. The approved increases are 13 per cent for 2015/16, or $68 a month for a single room and $52 a month for a double room. Proposed increases in the subsequent years are 6 per cent for the next two years and 4 per cent in each of the following six years. 

UVic estimates its total operating revenue for 2015/16 to be $338.2 million. As in previous years, and consistent with Ministry of Advanced Education policy, tuition fee increases are limited to 2 per cent—the rate of inflation. Undergraduate international student tuition is anticipated to grow by $7.3 million in revenue and now accounts for 24 per cent of the total tuition. After investments required to support the additional undergraduate investments, funding remains to support student success, make small strategic investments and offset previously anticipated budget shortfalls.

Expenditures are budgeted at $338 million, with 79 per cent of the total operating budget going to academic areas including faculties, research, library, student financial aid and student services, with the remaining 21 per cent allocated to facilities and support functions.

After inclusion of all other activities, for example research, distribution from the University of Victoria Foundation’s endowment and ancillary operations such as residences, the bookstore and parking, the total budget for the university is over $550 million.

The Planning and Budget Framework also highlights three key initiatives: updating the Strategic Research Plan, updating our Campus Plan and enhancing communications through The UVic Edge project and improved internal communications.

View the 2015/16 Budget Framework.