On November 27th the University’s Administration hosted a townhall to present assumptions that will inform next year’s budget. A key component of their messaging was the unprecedented uncertainty and the growing crisis facing the post-secondary sector due a lack of stable funding from the province and the impact of the international student cap imposed by the federal government. The Administration’s solution to this uncertainty is their differentiated growth agenda. While we understand that the post-secondary sector is facing several challenges, the key issue is the inadequate funding of the post-secondary sector in the province as Ontario has the lowest per-domestic student funding level for universities in Canada. This inadequate funding has been an issue for many years and has only gotten worse since 2018 when funding and tuition rates were frozen by the provincial government.
While we appreciate the Administration’s pragmatic approach to the current post-secondary landscape here in Ontario, and the impact that has on our budget and planning, we also want to reassure our members, that despite this uncertainty, Ontario Tech has realized budgetary surpluses for 12 out of the last 13 budget years and their current financial position is actually quite strong, as we can see through the University’s second quarter financial statements, shared at Ontario Tech’s Audit and Finance Committee meeting on November 21st 2024. We see a continued investment in the University’s capital projects and strategic initiatives throughout the second quarter, which are decided upon by the University’s senior leadership team with limited engagement from the wider University community. Even with those strategic investments, we are still well on our way to maintaining a $5.4 million dollar surplus budget. Highlights from Ontario Tech’s second quarter financial statements include:
- In April 2024, the Board approved a balanced budget for 2024/25 that included a net surplus contingency of $5.4M that will be released for future capital renovations and new investments in IT, academic and student-related space, should the budget assumptions be met or exceeded.
- Revenue increase of $10.6M mainly driven by a $5.4M increase in student fees, mainly attributable to the increase in domestic (469 FTE), and international (118 FTE) undergraduate enrolment over the prior year.
- General operating expenses include $1.0M of higher than budgeted consulting services, including costs associated with the new student residence, the purchase of Campus Corners, and IT consulting services
- Capital Expenses funded from operations include a forecast $0.5M investment in the University’s AI strategy, and $1.3M representing the portion of the purchase of the Campus Corners location which is not funded by external financing
- On September 17, 2024, the University acquired 50% of an administrative building and its surrounding locations (“Campus Corners” valued at $35.4M) for a net cash consideration of $12.9M. The University is in the final stages of negotiation with a financial institution for up to $12.0M external financing to fund for this acquisition.
While the Administration attributes the University’s strong financial position to its differentiated growth agenda, we believe it is actually a result of Faculty and staff having to do more with less, which has created unsustainable workloads, with many members indicating that they have reached their breaking point. Differentiated growth through increased enrolment may be one strategy to mitigate the lack of adequate funding to the post-secondary sector in Ontario, but differentiated growth cannot translate to further increases to workloads for faculty and staff, even larger class sizes and higher student-to-faculty ratios, less TA support, and a lack of research support, which unfortunately is what our members have experienced so far. According to the University’s internal metrics, we’ve seen an increase to the student-faculty ratio in 2023 to 31.3, as reported to Ontario Tech’s Strategy and Planning Committee at their June 20th, 2024, meeting (page 33).
As the University’s senior leadership team continues to consult on its upcoming budget, it is essential that we remind the administration that our success as an institution is because of the excellent research record and positive learning environment provided by Faculty and staff who have continued to prioritize the core mission of the University at all costs. In next year’s budget, it is time for the University’s senior leadership to follow through on its own promise to invest in its people. That means ensuring that workloads are sustainable, and that Faculty and staff have the proper resources they need to deliver the high-quality education and research that has been vital to Ontario Tech’s ability navigate the uncertainty facing Ontario’s post-secondary sector.