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2002 - 2005 Operating Fund Budget

Action Plans to Deal with the Projected Shortfall - Version #2

(Subject to Approval by the Vancouver Island University Board)

Highlights:

  • After making provision for new inflation on benefits and including the full impact of announced cuts in soft funding and projected cuts in Part-Time Vocational funding, the Adjusted Projected Shortfall for 2002/03 is $5,931,666 ($1,318,000 for 2003/04 and $1,332,000 for 2004/05 remain unchanged).
  • The reasons for the Projected Shortfall can be summarized thus:
 

Year 1

Year 2

Year 3

Unfunded Inflation

$ (3,368,000)

$ (1,318,000)

$ (1,332,000)

Cancellation of Soft Funding

(1,903,978)

Projected Cancellation of Part-Time Vocational Funding

     (659,688)

__________

__________

 

$ (5,931,666)

$ (1,318,000)

$ (1,332,000)

  • The Proposed Action Plans are projected to eliminate each Projected Shortfall.
  • Direct expenditures at Regional Campuses, Learning Connections, Student Services, and Instructional Services funded from soft revenues will require to be eliminated.  However, plans include restoration of some Student Services, new ongoing commitment to some Instructional Services, the creation of a Venture Capital Fund for Continuing Education and transitional funding to enable Learning Connections to move to a planned revenue based model.
  • Ongoing savings in Administrative costs are planned through a combination of position rationalization, expenditure savings, and revenue generation.
  • It is anticipated that some additional funding will be received to expand instructional programs in the New Era context (the source of that funding being the elimination of soft funding and projected elimination of Part-Time Vocational funding by the Ministry).  Plans call for the minimum necessary amount to be committed to instructional delivery with the balance of the funding intended for institutional overhead instead to be diverted to offset the Projected Shortfall.
  • A comprehensive Tuition Plan is contemplated which includes addressing revision of fees to reflect inflationary pressures and the six years freeze in common with colleges, university colleges, and universities, and structural realignment of fees to bring them in line with benchmarked predominantly undergraduate institutions in BC and other provinces which has been delayed during the overall tuition freeze.  In addition, an ongoing innovative assistance plan to ensure equity of opportunity for students will be introduced including provision for a student employment program, a matching incentive program to aid fund raising for scholarship and bursary endowment funds, and a needs and performance based tuition rebate program.  (See Tuition Plan).
  • An extensive evaluation of our investment in instructional programs and instructional services has revealed several areas of unmet need and areas where savings can be made to provide the means.  Savings will come primarily from the elimination of vacant positions, from selected program adjustments, from specific economies, and by cutting instructional sections where there is reason to do so.  The unmet needs that will be met involve continued support for teaching and learning, maintenance of the basic infrastructure necessary for research and scholarly activity, and creation of a small fund for program and instructional service reviews.  There will also be a recosting of proposed new programs based upon the revised tuition rates and institutional expectations regarding FTE delivery.  Longer-term program adjustments may follow in the coming year.
  • A comprehensive assessment of Student Services resources across the four campuses is being conducted which will result in commitment to a level of services tied to base funding thereby eliminating the uncertainties of providing ongoing services from soft funding.  In addition, a review of all facets of student advising across campus will be undertaken by a special committee.  Possible models which speak to appropriate levels and types of service along with the necessary budget commitment will be explored, and a report prepared by the Fall of 2002.
  • The Tuition Plan includes projections for International fees; however, extremely cautious projections of future net revenues will be incorporated into the overall budget given the current vagaries of the market place.  International Education will continue to underwrite instructional programming while in future providing the means to finance its own gradual expansion.
  • Use of Non-Recurring Funds will be made where projected revenues and savings cannot be realized immediately.
  • Largely thanks to increasing revenues, particularly through the Ministry's decision to return decision-making to the institutional level, and careful identification of savings, labour adjustments should be minimal given the projected shortfall to be dealt with.  The precise details will be worked out according to contractual obligations.
  • Details of the planned savings in the areas noted are currently being developed and will be released once finalized.

Details:

Proposed Action Plans:

Year 1

Year 2

Year 3

  1. Elimination of all direct expenditures related to Soft Funding (except see 7. below).

$ 1,587,930

  1. Elimination of all direct expenditures (Continuing Education Subsidy) related to Part-Time Vocational Funding (except see 7. and 9. below).

       261,129

  1. Administrative Savings.

       250,000

  1. Assignment of the Institutional overhead component of projected FTE funding to the shortfall:
    1. Annualization
    2. 1%
    3. New Era.

       300,000

       347,500

         50,000

  1. Projected revenue from new Tuition Plan relating to inflationary adjustment and structural realignment, including provision for possible enrolment changes. (See Tuition Plan).

    3,635,107



                    

1,318,000




1,332,000




  1. Reinvestment of projected revenues for ongoing Student Assistance.

      (500,000)

  1. Realignment of Budgets:
 

    1. Instruction:
      • Projected Savings
      • New initiatives to address unmet need
      • Venture Capital Fund for the Centre For Continuing Studies

       300,000

      (200,000)


      (100,000)

    1. Services:
      • Projected Savings
      • Partial restoration of Student Services formerly funded out of (now cancelled) soft revenues

       206,700

      (206,700)

  1. Commitment of Non-Recurring Funds. [For Information Only, Not Included in Totals]

    Transition funding for Learning Connections

                   


      (130,000)




__________




__________

  1. Total Net Revenues/Savings from Action Plans.


$ 5,931,666


$ 1,318,000


$1,332,000