Understanding the Financial Situation of the University of Ottawa APUO Executive Committee APUO Financial Analysis Committee January 2012
Key Messages Employer is not under significant financial strain. In fact, the employer s financial position is extremely healthy, with a substantial surplus. Over the last 10 years, the employer has chosen not to hire full time professors at same rate as student growth despite being financially capable of this. This has caused student-faculty ratios to increase, which has reduced student contact and increased professors workload. Other decisions regarding allocation of funds were and are possible for the employer. 2
Financial situation of the employer is very strong Financial Position 2011 (Year End, 30 April 2011) 1,800 1,600 In millions of dollars 1,400 1,200 1,000 800 600 400 200 - Assets Liabilities 3 Source: University of Ottawa Financial Statement, 2011
Employer is financially healthier now than 10 years ago Measures of Financial Strength 1,000 900 In millions of dollars 800 700 600 500 400 300 200 100 2001-2002 2010-2011 - Revenues Cash 4 Source: University of Ottawa Annual Financial Statements, 2002, 2011
Employer s financial strength following its decision to spend much less than it received over the last 10 years Operating Surplus (Deficit) 2001-2011 In millions of dollars 120 100 80 60 40 20 Surpluses made during the last 10 years represent $ 500 million - 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 5 Source: University of Ottawa Financial Statement and Budget, 2001-2011
The employer does not expect financial problems in foreseeable future, with surpluses predicted for next 3 years Tabled Budgets 8,000 7,000 In thousands of dollars 6,000 5,000 4,000 3,000 2,000 1,000-2011-2012 2012-2013 2013-2014 6 Source: University of Ottawa 2011 Budget presented to the Board of Governors
Financial strength has been fuelled by 1) massive growth in student enrolments, and Total Number of Students (Full time & Part time) 45000 40000 35000 30000 25000 20000 Enrolments have increased by 58% over the past 10 years 15000 10000 5000 0 2002-2003 2011-2012 7 Source: University of Ottawa, Quick Facts: Enrolment, 2002, 2011.
2) the decision not to hire full-time faculty at same rate as the increase in student enrolments 1400 Faculty 1200 1000 800 600 400 200 Number of full time faculty positions have only increased by 38% over the past 10 years 0 2002-2003 2011-2012 8 Source: APUO membership list
The employer s decision not to hire professors in proportion to students has led to an increase in student-faculty ratio # FTE (full time equivalent) students Student-faculty ratio grew by 25% from 1999-2008/09, meaning less contact for students and more work for profs # FT (full time) professors Student-faculty Ratio 1999 18,630 883 21.1 2008-2009 31,798 1,209 26.3 Student enrollment has increased by 13,168 (71%). FT Faculty has increased by 326 (37%). Student-faculty ratio has increased by 5.2, so an increase of 25%. 9 Source: Statistics Canada via CAUT Almanac, 1999 and 2008-09.
New comparative student-faculty ratios problems: A consequence of the employer s decision to hire professors at a lower rate than that of student increases Student-faculty ratios at Medical/Doctoral Universities (McLean's Magazine 2011) 30 25 20 15 10 5 0 Source: Maclean s Magazine, University Rankings Issue, October 2011 10
If employer had invested in hiring new professors at the same rate of growth of student enrolment, it would have meant 176 more professors than current levels Existing Increase in FT Professors since 2002-2003: 38% Current # of FT Professors: 1,230 Hypothetical (If on par with rate of student enrolment) Student enrollment increased 58% since 2002-2003, therefore, had FT professors been hired at the same rate we d currently have 1,406 FT professors (176 more than we have now) 11 Source: APUO Membership List
In Summary The Employer is not under significant financial strain. The Employer s financial position is extremely healthy, with a substantial surplus. The employer has been financially capable of hiring full time professors at the same rate as student growth but has chosen not to. The choice is ours: Today, we are talking about a choice to hire full time regular stream faculty (RSF) or Teaching Stream Faculty (TSF). Whatever decision we make, both choices are available to us. The chief concerns that should guide this decision should be those around quality of education and not perceived budgetary constraints. 12