McMaster approves consolidated budget

McMaster's Board of Governors approved a $664 million budget for the 2005/06 year. The consolidated budget incorporates all sources and uses of income for the University.

The Operating Budget provides new funding of $3.7 million to provide a stimulating learning environment; $5 million to build and inclusive community; $1.5 million for Refining Directions initiatives; and a $11.7 million investment in continuing operations. It is consistent with McMaster's conservative budgeting principles, providing for $2.1 million in contingency funding for departments and programs in transition and a $6-million bridge loan to the Faculty of Science.

“The Budget Committee has, I believe, presented a budget that is driven by our academic mission, vision and plans and meets our financial objectives,” says President Peter George.

Brian McCarry, chair of the Budget Committee said the committee faced a number of shallenges in developing this year's budget, due to uncertainty about the province's funding plans and the implementation of a new pension contribution schedule.

One concern was a year-over-year deficit of $10 million, which the budget would cover within two years. Another prominent budget item was an amount of $6 million in unrestricted funds, which would be assigned to the Faculty of Science to cover a crippling deficit. These funds would function as loan to the Faculty, which was
developing its own multi-year plan to resolve the deficit. McCarry emphasized that the development of the industrial research park and the satellite campus in Burlington would not be funded from the operating budget.

Similar to other Ontario universities, McMaster has been preparing to face some significant fiscal challenges in the next three years and welcomes the investments committed in the recent provincial budget, McCarry adds.

There is optimism, he says, stemming from the positive recommendations of the Rae Commission report and the positive funding directions taken by the province in the 2005/06 budget.

President Peter George agrees. “The Reaching Higher, Action Plan for Postsecondary Education, announced in the 2005 Ontario Budget, sends a clear and positive signal of future enhancements in funding for Ontario Universities. 2005/06 will be a transition year from the historic provincial funding model to this new multi-year funding plan that invests in student assistance, access and quality.”

For more information about the 2005/06 operating budget visit The Office of Analysis and Budgeting website http://www.mcmaster.ca/budget/index.html.