The Real Financial Situation of the University of Ottawa 3 July, 2013

Transcription

1 The Real Financial Situation of the University of Ottawa 3 July, 2013 Executive Committee

2 1. What is the employer s real financial situation? 2

3 Employer is in excellent financial situation Financial Position 2012 (Year End April 30, 2012) Millions of Dollars Assets 3 Net assets of almost $1 Billion Liabilities Net assets increased by $35 million between 2011 and 2012 Source: University Financial Statements 2012

4 Employer is in much stronger financial situation than in 2000 Measures of Financial Strength Millions of Dollars Employer has $350 million in cash. That s more than Tim Horton s! Revenues 4 Net Assets Cash Sources: University Financial Statements 2000, 2012

5 Employer banked almost $600 million in surpluses from Millions of Dollars Operating Surplus/Deficit Employer has not faced a deficit in 13 years Sources: University Financial Statements

6 despite systematically claiming that it faced financial shortfalls Budgeted versus actual surpluses/deficits Millions of Dollars 120 Budgeted (Surplus/Deficit) 100 Actual (Surplus/Deficit) Cumulative difference of $676M over 10 yrs Budgets under- estimated real situation by average of $68M/yr Sources: University Budgets & Financial Statements

7 Employer in much better shape than comparable Ontario universities Net Assets, 2012 ($M) Source: Audited University Financial Statements 2012 FILL DATA

8 Even employer s own presentation shows uo Pension Plan is in better shape than peers Waterloo Toronto Guelph McMaster Toronto -600 Waterloo -300 Guelph -200 McMaster 0 Ottawa Deficit Solvency, 2012 ($M) Ottawa Going Deficit Concern, 2012 ($M) Source: University of Ottawa Pension Plan presentation, May 23, 2013

9 2. What choices allowed employer to build such a large surplus? 9

10 Employer has chosen to grow revenue through major increase in student enrolments Total Number of Students (FT & PT) Milliers 45 Student growth of 76% over last 14 years Source: University Fast Facts

11 Employer has chosen to hire fewer regular profs than required by student growth Full- Time Faculty vs Student Enrolments to yr student growth of 76% yr faculty growth of 61% Faculty Students Sources: Membership List, University Fast Facts

12 Employer has chosen to reduce % of budget it spends on profs and other employees Salaries as % of revenues & expenses, % From high of 50% to current low of 38% 50% 45% 40% Salaries/Benefits as % of Revenue 35% Salaries/Benefits as % of Expenses 30% 25% 12 Sources: University Financial Statements From high of 42% to current low of 34%

13 3. What have these choices meant for students and members? 13

14 Higher Tuition Fees Tuition growth of 23% over last 5 years Tuition Fees Source: University of Ottawa website, Registrar s office, archived tuition fee, B.A., B.Soc.Sci

15 More Student Debt Average Student Debt ($) On average, Canadian students need 14 years to pay back student debt Canada (1) 15 Ontario (2) Source: (1) Canada: Financial Post. (2) Ontario: Canadian Federation of Students and Stats Canada, Moving towards affordable postsecondary education, February 2013

16 Larger classes, less student access to profs Student to Faculty Ratios at Medical/Doctoral Universities (Maclean's Magazine 2011) Source: Maclean's University Rankings, 2011 Source: McLean s Magazine 2012

17 Less student access to Librarians Student to Librarian Ratios in Ontario Source: Ontario Council of University Libraries 2010 Facts; CAUT Librarian Salary Survey Source: McLean s Magazine 2012

18 Lower salaries for members 5 EXAMPLE 1: % Difference between uo Full Prof. Salaries and Avg Full Prof. Salaries at Comparator Universities (by age) % Underpaid All Comparator Universities include: Carleton, Guelph, Laurier, McMaster, Queen s, Western, Windsor 18 Source: StatsCan Universities Salary Survey, 2010

19 Summary There is no fiscal crisis. In fact, the employer is in excellent financial situation. Employer s choice to spend less on teaching and research has many negative consequences If we stand together, we can do better 19