The UBC Board of Governors unanimously approved a $3.29 billion budget for the 2022/23 fiscal year at its March 31 meeting.
This year's budget prioritizes commitments to UBC’s academic mission, equity and diversity, truth and reconciliation, student support and climate action, according to the university’s budget package.
UBC’s budget assumes a total operating revenue of $3.39 billion, and a total operating expense of $3.29 billion, leaving a consolidated surplus of $100 million.
"While there is a $100 million consolidated accounting surplus, the entire surplus is not available for cash distribution for example the internally restricted research funds are committed to support new faculty hires and start-up, returns from internally restricted endowment funds are reinvested," the budget submission reads.
However, the consolidated budget plans for an operating deficit of $7 million. This is due to the COVID-19 pandemic, projects that were delayed but will now be undertaken in 2022/23 and hiring planned to take place this fiscal year, according to the budget package.
Of the operating revenue, $1.04 billion will come from provincial government grants, $1.04 billion will come from tuition and $1.3 billion will come from other sources. Breaking that tuition money down, $409 million will be coming from domestic students with $633 million from international students.
The Board of Governors passed a tuition increase of 2 per cent for domestic and returning international students, and an increase of 4 per cent for new international students. The increase is expected to bring in an incremental tuition revenue of $18 million. VP Finance and Operations Peter Smailes said this budget was “reliant on those increases” in discussions at the Board meeting.
In terms of expenses, salaries and benefits will take up $2.06 billion of the expected operating expense, while $1.23 billion is budgeted to be spent on non-salary expenses.
Breaking down those expenses, UBC plans to spend nearly $229.5 million on "strategic investments." This is a nearly $57.8 increase from what the university spent last year. These investments are to finance programs, operations and other “core priorities” the university thinks are important.
Across both campuses, $75.4 million will be spent on "peoples and places." This makes up funding for equity, diversity and inclusion priorities; transportation and infrastructure; investments in recruiting and retaining faculty; and various scholarships and research awards.
$28.6 million is allocated towards “research excellence.” This involves continued funding for research services, spaces and activities.
“Transformative learning" will receive $21.4 million to enhance the student experience and develop teaching through alternative models like integrating “high performance computing” with teaching and learning.
UBC plans to invest $18.8 million on “sustainment, risk & compliance.” That is $12.4 million more than what UBC spent last year. This includes funding for climate action, the Integrated Service Centre and providing "support for classroom upgrades."
$12.7 million will go toward "local and global engagement" for continual investment in UBC's Indigenous Strategic Plan, Climate Action Plan 2030 and Campus Vision 2050. It would also improve "communication locally and globally" with potential students and increase digital marketing and recruitment.
In specific, $1.4 million will be put toward supporting the implementation of the Climate Action Plan 2030 and supporting the Centre for Climate and Environmental Justice.
For the curious, 4:13:00 of recording: https://t.co/uw9zIqhp9W pic.twitter.com/YR16hlEL1j
— Matthew Asuncion (@MattJAsuncion) April 7, 2022
$10.5 million is allocated towards continuing the support of projects which advance UBC’s Strategic Plan, which is an increase of $6.5 million from what was spent in the previous year. This involves investing in the Interdisciplinary Collaboration and Innovation Building on the Okanagan campus and the UBC Downtown Kelowna project.
Lastly, the President's Academic Excellence Initiative (PAEI) will be allotted $9.9 million.
Overall, the Board agreed that this year's budget was very thorough. Student representative Max Holmes said he appreciated "the massive amount of detail” in the budget package.
Chair of the Board Nancy McKenzie expressed approval with the budget.
“When you look at the overall package, there's been give and take in different areas, and I think there has been a lot of thought gone into where investments are made and where cuts are being applied to try to find that right balance."