University budget balanced despite funding pressures, rising costs

The Board of Governors has approved McMaster’s 2016/17 Consolidated Budget – a financial plan that provides a framework for strategic academic investments and balances shortfalls with accrued savings.

“Each year, the University faces rising costs, increasing demands and a challenging funding environment all needing to be balanced with our commitment to continue as one of the world’s best universities,” says David Wilkinson, Provost and Vice-president Academic.

“This budget includes seed funding for new academic initiatives and projects, it balances shortfalls with savings and allows us to make important strategic investments despite the uncertainty and constraints we face.”

McMaster’s budget supports a number of strategic priorities and obligations including the Strategic Mandate Agreement with the province and the vision and priorities identified within Forward with Integrity.

New academic initiatives are being supported through the University fund and the research portfolio. Individual Faculty budgets include funds for new research centres, the appointment of new research chairs and the development of new collaborative spaces for teaching, learning and research.

The opening of the Gerald Hatch Centre for Engineering Experiential Learning and L.R. Wilson Hall will help contribute much-needed capacity for active learning and collaboration. New academic programs such as the Executive MBA and new bachelor/masters blended degrees are also being allocated resources to help achieve academic goals.

The University also faces additional cost pressures including consistent increases in the cost of utilities, inflationary pressures on salaries and benefits, pension payments and ongoing deferred maintenance expenses.

Two budget cycles are now complete using the University’s new budget model and changes have been introduced based on feedback and analysis. Some of these improvements have been adopted in this budget with further refinements to be implemented next year.

In the upcoming budget and planning years, the province of Ontario will introduce a new funding formula, a new tuition framework and other measures that will impact McMaster. It is also considering pension measurement and funding alternatives that could affect future University’s budgets.

“Each year, the University relies on the expertise and commitment of the budget committee to assist in this vital and necessary work. I want to thank the members and chair professor Vishwanath Baba for this fine work,” Wilkinson says.