Part B: Operating Budget

Budget Context

The Operating Budget comprises the major annual revenues and expenditures of the University’s financial operations. Revenues from student tuition fees and government operating grants account for 92% of the total operating revenues. Faculty and staff salaries and benefits account for 75% of the total operating expenditures.

The Operating Budget does not include those financial activities that are not available for general operating purposes such as direct sponsored research, trust and endowments, and government grants for major capital projects. These financial activities are consolidated and presented annually in the audited financial statements.

A number of external initiatives directly influence Laurier’s Budget. These include:

Government Corridor Funding Formula for Grants

In 2017/18, Ontario universities moved to a corridor funding model where rather than incrementally funding grant eligible (normally domestic) enrolment, institutions are funded to a mid-point level within a corridor. The midpoint was negotiated as part of the SMA2 process, and corresponds to actual funding levels from the 2016/17 year, for undergraduate student funding. The midpoint is expressed in Weighted Grant Units (WGUs), which replaces the previous Basic Income Unit (BIU) system. The midpoint will be reviewed annually against a 5-year growing moving average, with year one being 2016/17. Funded graduate enrolment has been re-based at the sector level and unfilled spaces redistributed. For Laurier, this has resulted in an increase in graduate funded spaces for the duration of SMA2. Institutions with averages consistently above their corridor ceiling may see measures such as increased reporting, reductions in funding, rejection of new program proposals, and limited access to other ministry grants or programs.

Tuition Framework

There have been no changes or updates on the publicly funded tuition fees as governed by the Provincial government’s framework and guidelines. The previous extension of the existing framework remains in place for academic years 2017/18 and 2018/19. Institutions continue to be capped at an overall tuition increase of 3% for eligible enrolments.

Milton Expansion

Funding received for Milton will be separate from Brantford and Waterloo corridor funding. Milton will yield student revenue once courses and programs commence.