Concordia plans balanced budget for 2011-12
Concordia University’s Board of Governors has approved balanced budgets for 2011-12 and the two subsequent fiscal years.
Concordia’s budget for 2011-12 includes improved funding for graduate students over three years. In order to prepare for the future, the university also budgeted for the startup of new projects such as the PERFORM Centre and the Centre for Structural and Functional Genomics, and set aside funds for upgrades of the university’s major computer systems.
Concordia will continue to invest in its priorities as specified in its Strategic Framework — Reaching Up, Reaching Out — to ensure the long-term future of the university and its community. Concordia’s goal is to rank among the top five comprehensive universities in Canada within the next decade and to be a first choice for students and faculty in a wide variety of defined areas of research and study.
Balanced budget 2011-12
Budget projections for 2011-12 and subsequent years were prepared in accordance with the requirement by the Ministère de l’Éducation, du Loisir et du Sport (MELS) that Quebec universities conform to Generally Accepted Accounting Principles (GAAP).
GAAP is designed to standardize and simplify financial reporting for a wide range of corporations, organizations and institutions, and government. This can result in the reclassification of certain budget items when comparing figures with those of earlier fiscal years.
In addition, the provincial budget introduced in the National Assembly on March 17, 2011, contained major changes to funding arrangements for Quebec universities over six years.
After the application of GAAP, which includes the impact of $7.2 million to fund pension and post-retirement benefits, Concordia’s operating fund is expected to be balanced for 2011-12.
For the second consecutive year, Concordia has prepared its budget based on a three-year rolling cycle of planning. This allows the university to adjust its budget priorities and maintain its strategic objectives in an environment in which there can be fluctuations in government funding, enrolment results and other factors.
Concordia’s budget represents a prudent, long-term view of the university’s growth and development. Key budgetary measures include increasing support for our graduate students by $4.8 million over three years through fee remissions and other initiatives. Concordia’s research profile has been improving consistently in recent years and we will continue to make important investments in our Faculties and in research.
Quebec University Funding Plan
In the Quebec provincial budget for 2011-12, introduced in the National Assembly on March 17, 2011, the government presented a six-year plan to narrow the wide funding gap between Quebec universities and their counterparts in the rest of Canada, while taking steps to ensure that university education remains accessible to low-income students.
Over the course of the Quebec University Funding Plan, the government is planning a $320-million increase in core funding for universities and another $530 million in additional resources. Funding increases will begin gradually in 2012-13 and continue to 2016-17.
The government’s plan is an important step toward bringing funding for Quebec’s university network into line with comparable institutions of higher learning elsewhere in Canada. Under the plan, operating revenue for the Quebec university network is forecast to rise to $4.58 billion in 2016-17 from $3.73 billion in 2010-11.
Impact on Concordia
Quebec’s new university funding plan has important implications for Concordia. All stakeholders, including students and the business sector, are being called on to contribute to the plan. It has incentives to encourage universities to increase the level of donations they solicit from both corporations and individuals.
The universities are not being given a blank cheque in terms of additional funding. Any new revenue stemming from Quebec’s planned increases in tuition must be devoted entirely to the quality of teaching and student services and the quality of research through “partnership agreements” with the government. Concordia and government officials will discuss these agreements in the coming months.
Quebec universities’ access to new funding resources under the plan is also subject to meeting specific requirements and performance targets — such as student retention and graduation rates. Concordia already has guidelines for enrolment growth and student retention, based on forecast demographic data and program information.
Under the new government plan, Quebec universities are expected to increase revenue from other sources, such as private contract research and continuing education services, and from ancillary services such as those for parking and food. This could put pressure on Concordia’s budgetary measures in the coming years, as the university is pressed to promote and expand its commercial operations.
In addition, certain funding will be contingent on other requirements, such as maintaining a balanced budget, and eliminating annual deficits and the accumulated deficit. It is also important to note that the growth rate of total remuneration at Concordia will have to compare well with Quebec government pay policy.
The Quebec government has stipulated that Quebec universities must improve the training they offer, be more competitive internationally and develop further areas of excellence. These are all laudable objectives that require further investment of resources to be successful.
Prudence and efficiency
In the coming weeks, our administration will work closely with government officials to clarify the details on additional funding that would be available to Concordia under the government’s plan, and the requirements that would have to be met to obtain those funds. Other key issues, such as tuitions and forfaitaires for international and non-Quebec Canadian students, will also be discussed with MELS during 2011-12.
“I am grateful to the senior administrative team for their collaborative work on the budget, and for their efforts yet to come in determining the direct impact of government funding changes on our university,” says Concordia Chief Financial Officer Patrick Kelley. “We are able to consistently balance our budget, reinvest in our university and meet new challenges in large part because of the input and support of all of our constituents, including our Board of Governors, alumni and friends in the community.”
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Contact:
Christine Mota
Director, Media Relations
Tel: 514-848-2424, ext. 4884
Cel: 514-952-5556
Email: chris.mota@concordia.ca