BU board approves 2024-25 budget

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This article was published 20/06/2024 (652 days ago), so information in it may no longer be current.

Brandon University’s board of governors approved the 2024-25 budget during its June meeting on Saturday, earmarking $67.77 million in operating expenses for the next academic year.

The $67,771,589 budget reflects a growth of $8,182,022 in expenses, representing a 13.7 per cent increase from last year’s $59,589,567 budget.

Marketing and communications director Grant Hamilton said the university presented a balanced operating budget to the board, including $1.8 million in contingency funds and a consolidated surplus of $1.588 million, achieved through endowment donations, capitalized endowment income and prudent financial management.

“Despite an operating subtotal deficit of $411,606, the university expects to achieve this surplus through funds held in the Brandon University Foundation, which are restricted to specific purposes such as scholarships,” Hamilton told the Sun in an email on Tuesday. “We have about $3.6 million in scholarships that are counted under expenses but funded from investment and endowment income. We have income in the annual operating line and the total surplus, which contributes to that.”

Regarding the increase in learning and support expenses, which contributed to the upswing in the budget, Hamilton explained this primarily refers to faculty salaries and operational costs associated with running the university.

“These expenses are crucial as they directly impact student learning and the quality of education we provide,” he said.

Regarding concerns about the university’s reliance on provincial grants and student fees, Hamilton acknowledged this dependence but emphasized that it is a common funding model across Canadian universities.

He noted that while BU also generates revenue through residences, business services, conferences and merchandise sales, these are not major sources of funding.

“We rely heavily on public funding and take our role as stewards of that money seriously. It’s a societal recognition of the value of post-secondary education in creating engaged citizens with great careers,” he said.

The provincial government has increased BU’s operating grant by 2.6 per cent, amounting to $1.05 million, along with a further $243,000 specifically allocated for institutions outside Winnipeg.

An additional $7.4 million in operating funding has been verbally promised, potentially boosting the total grant increase to more than 20 per cent. These funds, however, are restricted to current fiscal year operating needs and cannot be used to offset past deficits, the board agenda stated.

According to the document, tuition fees are set to rise by 2.75 per cent, the maximum allowable increase.

Domestic student enrolment is expected to grow by three per cent, while international enrolment is anticipated to drop by 20 per cent, it added, attributing the changes to federal regulations and increased deposit requirements.

“This decline in international students has led to a projected decrease of $459,000 in total tuition revenue compared to the 2023-24 budget,” the agenda stated.

Salaries and benefits are a major component of the budget, with an increase of $4.78 million over the previous year. This increase accounts for anticipated salary raises, position replacements and leave provisions under new and ongoing collective agreements. Travel budgets have been restored to pre-pandemic levels, adding $301,000 to the budget, while utility costs are expected to rise by approximately $51,560.

For the first time in several years, the agenda stated, the budget includes a three per cent inflationary increase across general expenses and a contingency fund of $1.8 million to address unexpected costs, particularly those related to lower-than-expected enrolments or urgent facility repairs.

Hamilton said the university works hard to maintain a balanced budget and ensure that “students receive a high-quality, affordable education. Our faculty, staff and students play a significant role in achieving this.”

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