WINNIPEG, MB -The University of Winnipeg’s Board of Regents tonight approved a balanced operating budget of $100 million for the 2010-2011 fiscal year. However, a continued reduction of 3.5 % in all departmental spending, significant pay freezes and increased vacancy management is required to meet the financial squeeze facing the University.
In March, the Province of Manitoba increased the operating grant to UWinnipeg by only 2%, down from 5% in previous years. In addition, UWinnipeg receives less than two-thirds the funding per student of other Manitoba universities. Tuition will increase by 5%, effective September 2010. The 2010-2011 budget does not include extra tuition increases for professional schools such as business and education at this time.
“Achieving a balanced budget is increasingly difficult,” said UWinnipeg Board of Regents Chair Debra Radi. “We are, once again, maintaining strict control on new hiring and spending, while asking all employees to deliver a world-class education. As a Board, we are extremely appreciative of the commitment of our faculty and staff in supporting the vision of the University by understanding the constraints that we face as they continue to be personally impacted by our fiscal realities.”
“Our faculty and staff continue to make enormous efforts to cut departmental spending but after years of restraint we have reached marrow, not just bone,” said UWinnipeg President & Vice-Chancellor Lloyd Axworthy. “It is critically important that UWinnipeg and other Manitoba universities remain competitive nationally and globally by attracting talent and updating infrastructure. Students today are mobile and discriminating. Collectively we need to make strategic investments in higher education to keep Manitoba’s economy healthy and growing.”
Faculty and staff contribute to balanced budget
In March, senior administrators at UWinnipeg announced they will take a pay freeze in 2010-2011, including the President, Vice-Presidents, Associate Vice-President and equivalents, and Deans. This follows an up to 10% pay cut last year.
Employees in two groups – the Association of Employees Supporting Education Services (AESES) will receive a 1.5% general salary increase as prescribed in their current collective agreement. This same increase will be applied to the Confidential, Management and Professional (CMP) group (non-unionized staff and management) following 7 to 10 days off without pay last fiscal year. Many CMP and AESES staff have also voluntarily taken up to 10 days off without pay to help balance the budget for 2010-11. The University is currently bargaining with UWFA Collegiate, andmembers of the University of Winnipeg Faculty Association (UWFA) and the International Union of Operating Engineers (IUOE) will be entering collective bargaining this year.
Budget Highlights:
Revenues
- The Government of Manitoba is providing an increase to The University of Winnipeg’s baseline operating grant of 2% over last year.
- Tuition will increase by 5%.
- Other revenues include sponsorships, room rentals and revenues from various student services such as the new bookstore and increased food sales on campus.
Expenses
- Salaries remain the largest part of the University’s budget – more than 80% of the core budget and 65% of total expenses.
- A decision by the Superintendent of Pensions to reverse a 2003 University agreement will result in ongoing additional annual expense of $530,000 to the University for the next 40 years.
- The University is reducing its reliance on third-party leases such as off-campus building rental costs, and relocating all programs and offices back to its Portage Avenue campus.
It is important to note that while the University’s “A World of Opportunity” Capital Campaign has generated more than $70 million to date, all of these funds are committed to specific projects and programs. None of these funds can be used to address annual operating budget deficits.
The University of Winnipeg is currently conducting an organizational and administrative review of all departments to recommend measures that will generate new revenues or achieve further savings and efficiencies.
BUDGET MEDIA CONTACT:
Dan Hurley, Senior Executive Officer, External Affairs
The University of Winnipeg
C: 290-4525
d.hurley@uwinnipeg.ca
