Adjusting McMaster’s budget model

Nearly two budget cycles are complete using the University’s new budget model. During that time, there has been a great deal of learning about what works well in the model and what requires some adjustment.

Complementing this analysis and learning have been ongoing consultations with many groups across campus, including the Faculty deans, their associate deans and directors of administration, the Budget Committee, the Faculty Association and the McMaster Students Union.

“It has always been our intention to consider how the model is serving our needs and to make the necessary refinements to ensure we are learning from the past two budget cycles,” says Provost David Wilkinson.

Over the course of the model’s first two years, changes have been made to address issues including refining graduate student drivers, changing enrolment projection assumptions, fine tuning revenue allocation methods and correcting revenue classifications.

“We have now collected more feedback and have considered a range of options with a view to make further changes,” Wilkinson says.

Among these improvements:

• Increasing accountability and transparency so that Faculties have a clearer understanding of budgets, processes and allocations particularly for support services
• Replacing the hold harmless provision with an annual Faculty supplement transfer
• Promoting equity amongst Faculties through a graduated tax system whereby those offering professional programs make a higher contribution to the Research Infrastructure Fund
• Strengthening support for research, both through this increase to the Research Infrastructure Fund and by bolstering the Vice-president Research Discretionary Fund
• Ensuring the University remains compliant with the mandated Tuition Set Aside requirements by refining the undergraduate student bursary envelope and allocations
• Growing the University Fund to allow for greater strategic reinvestment in Faculties and in initiatives that align with McMasters mission

These changes increase transparency around McMaster’s budget, while helping overcome challenges arising since the new model was introduced.

Some of these improvements will be in place for the 2016/17 budget year, while others will need some additional time before being implemented in 2017/18.

The future of university funding in Ontario remains uncertain. The tuition framework expires in 2016/17 and the province continues its analysis of the funding formula. It will be important for the University’s budget model to have flexibility in a time when there is anticipated yet uncertain change.

Read the Provost’s report on these changes.