Report: UTM Campus Council - April 15, 2024

1. Chair’s Remarks
   
   The Chair welcomed members to the Cycle 5 meeting of Campus Council and congratulated all newly elected student members to Council, who had recently been announced by the Office of the Governing Council elections team.
2. Report of the Vice-President & Principal
   
   The Vice-President & Principal began with a note of introduction welcoming the Black at UTM team. He noted that the work initiated by the UTM Anti-Black Racism Task Force and Tri-campus partners resulted in a report with 58 recommendations aimed at promoting black excellence and opportunity across various university domains. Black at UTM had since led efforts to honor these commitments, promoting accountability and community across campus. Heather Hines, Director, Office of the Vice President, along with Martin Kengo, Manager, Black Initiatives, and Eileen Waweru, Coordinator, Black Initiatives, were welcomed to share their work.
   
   Ms Hines introduced a student-initiated video and quotations from staff, which were shared to provide perspectives on being Black at UTM and the importance of Black excellence. Mr. Kengo then presented an overview of Black at UTM's work, highlighting the operationalization of 58 recommendations and the establishment of foundational groups like the Anti-Black Racism Operational Group and the Black Leadership Table. The presentation emphasized the university's commitment to addressing anti Black racism since the signing of the Scarborough Charter on Anti-Black Racism and Black Inclusion in Higher Education, with a focus on promoting Black flourishing and inclusive excellence.
   
   Ms Waweru elaborated on the impact of Black at UTM, including community engagement efforts, policy influence, and support for Black staff and students. The presentation showcased initiatives such as the creation of a Black Leadership Table, Black Student Leadership Awards, and the Black Opportunities Fund. Collaboration with alumni networks and other educational institutions to share experiences and best practices was also highlighted.
   
   Members commented about further engagement with alumni, sharing experiences with other institutions, and encouraged outreach to high school students, ensuring representation and support for Black students. The team emphasized the importance of institutional initiatives, staff involvement, and community engagement in promoting Black excellence at UTM.

3. Capital Project (Level 3): Report of the Project Planning Committee for University of Toronto Mississauga Residence (Phase IX) – Project Scope and Sources of Funding
   
   At the invitation of the Chair, Luke Barber, Acting CAO, provided a presentation about the proposed capital project.  He began by expressing gratitude about the extensive work that had gone into the proposed residence project over the past five years, including the following units: University Planning, Design, and Construction, Planning & Budget, Facilities Management and Planning, UTM Budget, Planning and Finance, UTM Student Housing and Residence Life, and external experts like The Scion Group, one of North America’s leading advisors on student housing, and the architectural team from Montgomery Sisam Architects.
   
   Mr. Barber noted that UTM accommodated over 1500 residents in on-campus housing, primarily consisting of first-year students, but also including upper-year students, graduate students, medical students, and those with families. The UTM Student Housing and Residence Life was the largest residence operation within the University, with a team of over 100 student and professional staff offering support through various residence styles and hosting a significant 50% international student population.  He emphasized that UTM's residences were not just a place to live but a supportive environment that fostered both personal and academic development. The proposed Phase IX residence project intended to add 400 beds in single and double rooms and was to be completed in the summer of 2026. This expansion was aimed at increasing the total campus capacity to accommodate 1,900 residents. The scale of this new building was likened to Oscar Peterson Hall, which opened in 2007.  Mr. Barber stressed that this expansion was crucial for maintaining UofT’s first-year housing guarantee.
   
   The Assistant Dean Students and International Initiatives, Chad Nuttall, explained how the project aligned with UTM's enrollment strategy and supported the first-year housing guarantee, emphasizing the university's commitment to meeting the requirements.  Mr. Nuttall elaborated on the strategic priorities addressed by the proposed new residence project, including fostering student success by enhancing the overall student experience, encouraging collaboration and a sense of belonging through on-campus housing, promoting efficient and sustainable operations, embracing UTM's unique place, and addressing the high demand for student housing. Mr. Nuttall explained that UTM’s ability to fulfill UofT’s first-year housing guarantee was becoming increasingly challenging and that the proposed new residence was positioned as a solution to drive efforts in meeting that housing guarantee, particularly in attracting students from outside Ontario and Canada.  There was a strong demand for student housing, shown by a consistent trend over the last decade, which the current capacity could not accommodate.  He emphasized that both the residence guarantee and first-year housing guarantee were critical components of UTM's enrollment strategy.  He pointed to some research findings that suggested an association between students who spent a semester in residence and successful degree completion.
   
   The Director of Student Housing and Residence Life, Brian Cunha, discussed the positive outcomes of living in residence. He then shared striking visuals of the intentional design of the new residence building, emphasizing its focus on community-building, spaces for students to meet, study, learn, and live.  The visuals included a map indicating the residence's location, images of the entrance plaza, amenity spaces, gathering areas, and renderings of interior spaces, including bedrooms and bathrooms. The proposed site was adjacent to Oscar Peterson Hall (OPH), occupying the existing P6 Parking Lot to the northwest as well as one row of existing townhouses (Schreiberwood Residences Townhouse Complex G), both of which would be demolished for the anticipated project. The main entrance of the building would be off Residence Road.
   
   Professor Robert Gerlai, Chair of the Campus Affairs Committee, summarized the discussion that had occurred at that Committee.
   
   Following the presentation, the following topics were discussed by members:

• A member asked how the project team had incorporated student preferences and feedback into the building design. Mr. Chad Nuttall, Assistant Dean, Students and International Initiatives pointed to the building’s many shared spaces – for example its music room and event and meeting facilities – recognizing that these spaces reflected student priorities to connect with mentors and with each other.
• Also, in response to a member’s question about the availability of study spaces within the proposed residence, it was noted that the new residence would offer a variety of study environments with diverse settings, including lounges on every floor, each equipped with a kitchen, as well as individual rooms with desks and computer setups. It was added that there was potential for students to utilize these spaces for studying and socializing, both within their own floor and across different floors of the building.
• It was also confirmed that these areas, including the lounges, would be located on upper floors within the secure area of the building, ensuring that they were accessible exclusively to residents for their use.
   

On motion duly moved, seconded, and carried

YOUR COUNCIL RECOMMENDED

THAT the project scope of the University of Toronto Mississauga (UTM) Residence (Phase IX), as identified in the Report of the Project Planning Committee for the UTM Residence (Phase IX), dated January 26, 2024, be approved in principle; and,

THAT the project totaling 6,538 net assignable square metres (nasm) and 10,088 gross square metres (gsm), be approved in principle, to be funded by UTM Residence Construction Reserve, UTM Operating Reserve, and Financing.

4. Overview of the UTM Campus Operating Budget for 2024-25
   
   The Chair reminded members that they received an overview of campus strategic priorities by the Vice-President & Principal and by the Vice-Principal, Academic & Dean in the fall. In Cycle 4, a presentation on the University’s Budget Report 2024-25 and Long-Range Budget Guidelines 2024-25 to 2027-29 was also provided. He noted that these earlier items culminated in the campus operating budget presentation today.  He invited the following presenters for the item:  Professor Ian Orchard, Vice-President & Principal, and from the Budget, Planning & Finance Office, Christine Esteban, Executive Director, and Rabeeya Amjad, Director, Planning & Analysis to provide the presentation. 
   
   Professor Orchard began the presentation by framing the budget within U of T's academic story, highlighting two significant changes over time. He noted that twenty years ago, provincial funding accounted for about 45% of the university's total revenue, whereas today, it had fallen under 20%. Conversely, he said, U of T had risen 16 places in the QS world rankings over the same period. Despite decreased government funding, U of T had become a leading public university, showcasing positive change grounded in research and teaching strength.  He emphasized the hard work and ingenuity of the community, stating that U of T achieved seemingly impossible feats through creative solutions. Despite challenges, such as recent changes to federal and provincial policy, UTM projected a balanced budget through 2028-29, overcoming a projected deficit of $150M at the start of the pandemic in 2020.  He remarked that there was a need for adaptive budget solutions in a changing financial context.
   
   Ms Esteban continued the presentation by reporting that in 2024-25, UTM generated $455M in gross revenue, allocating $85M to university-wide contributions. This left $370M for campus-specific budgets, which funded departments and services. Despite mid-year budget changes, UTM managed expenses and set funds aside for future projects.
   
   By 2020, UTM faced a $150M deficit over five years. Last year, UTM balanced the budget with a series of coordinated steps, creating much of the savings by introducing administrative efficiencies and slowing down spending on big capital projects. UTM also planned to generate more revenue by increasing summer enrolment and adding 100 more full-time international students to fall intake targets.
   
   Ms Esteban explained that since then, two significant changes had occurred:

• Increased Compensation Costs: Last September, the University agreed to raise salaries for Faculty, Librarians, and employees, adding about $12M more to salaries in 2023-24. This necessitated planning for reduced spending in other areas.
• International Enrollment Shortfalls: In summer 2023, only 66% of UTM’s international enrollment target was reached, partly due to limited online course offerings. Learning from this, UTM increased online course offerings to 31% in summer 2024. Despite improved performance in fall 2023, UTM still fell short by 175 international students, impacting revenue projections for the next five years.
   

These changes tightened UTM’s budget context, which was marked by:

• Historical decreases in government operating grants' real value.
• Tuition constraints due to limited capacity to increase international tuition and frozen in-province domestic tuition rates.
• Disparity between domestic tuition rates and educational costs.
• Increased divisional contributions for institution-wide priorities.
• Escalating capital costs, rising by up to 17.5% annually since 2020 due to inflation and supply chain disruptions.
   

Chaired by the Vice-President and Principal, the Strategic Planning Advisory Committee (SPAC) worked to address budget challenges and made final budget decisions based on campus priorities, as follows.

• Personnel:

Last fall, UTM adjusted its complement plan to adapt to new budget pressures. The committee chose to maintain investment in existing student supports and faculty, librarian, and staff complement. However, new hiring was scaled back, with only four faculty searches conducted in 2023-24 instead of the initially planned 19. In response to a previously submitted question, the Vice-President & Principal explained that the faculty searches UTM pursued focused on positions in two categories: (a) those tied to special funding sources, including philanthropic support and the Provost’s hiring fund for Black and Indigenous faculty; and (b) those in fields with extra industry labour market pressures, including economics and statistical sciences.

Ms Esteban added that recently, the Vice-Principal Academic and Dean organized a new committee to advise on the allocation of all faculty positions going forward. That committee has now invited position proposals from academic departments and institutes, planning to analyze each in relation to a series of data-informed criteria, including priorities of the strategic framework and academic research and teaching needs.

• Capital Developments:

Following provincial and federal announcements in early 2024, spending on new infrastructure projects slowed down. While investments in critical projects like the new residence continued, other building plans were scaled back. Projects such as the planned parking structure were paused, and ambitious developments, like the F2 building, could not move forward due to budget constraints.

• Other:

Budget strategies introduced last year were continued, including maintaining reductions in non-compensation budgets, academic carry-forward allowances, and one-time-only budgets for new initiatives. Additionally, strategies were implemented to offer a portion of courses online, increase international student enrollment, and manage faculty searches.

UTM presented its targets for new undergraduate enrollment in 2024-25, aiming for 3,942 new students, with 68% domestic and 32% international. Over the past decade, enrollment at UTM fluctuated due to various challenges, including those from the pandemic. In 2022-23, UTM fell below targets for both domestic and international students. Efforts in 2023-24 led to strong domestic enrollments but still fell short by 175 international students. To address this, UTM accelerated strategic enrollment management efforts, showing early signs of improvement compared to other divisions at U of T.

Ms Amjad outlined UTM’s total enrollment targets for 2024-25, noting that UTM was aiming for 15,816 undergraduate students (73% domestic, 27% international) and 515 professional graduate students (65% domestic, 35% international). Compared to the previous year, undergraduate enrollment increased by 7%, with domestic and international numbers up by 9% and 3% respectively. Graduate targets remained steady, but domestic enrollment decreased by 7% while international rose by 14%.  The shift reflected UTM exceeding its new intake target in fall 2023 and strong continuing enrollment, particularly from domestic students. However, UTM's graduate enrollment has consistently fallen short of target since 2019, prompting a conservative projection for 2024-25.

Key revenue assumptions included provincially frozen undergraduate domestic tuition, potentially resulting in a $2 million revenue reduction if the freeze continued. Non-Ontario resident undergraduate tuition was set to increase by 5%, while international tuition would rise by 2%. Graduate domestic tuition was planned to stay flat, with international rates increasing by 0-2%. Revenue growth was slowing due to lower-than-expected international undergraduate intake, a freeze in base operating grants, and market limits on international fees. The budget assumed additional operating grants to offset the impact of the domestic tuition freeze. Advocacy continued for a 10% increase in operating grants, which could result in an additional allocation. Any significant budget variances would be addressed through the University's budget model.

UTM’s revenue categories were shown with UTM's revenue at $455 million, comprising mainly tuition (66%), operating grants (14%), divisional revenue and reserves (10%), and allocation through the University Fund (7%), among other sources (3%). $54M went towards university-wide costs, and $31M was allocated for student aid, including the international scholarship program. After contributing $85M to U of T as a tri-campus, UTM's net revenue amounted to $370M.

The 2024-25 operating expense budget for UTM was then summarized.  Expenses amounted to $370 million, categorized as follows: salaries and benefits for faculty, librarians, and staff excluding Student Services (66%); self-funded student services (8%); equipment and supplies (7%); infrastructure, deferred maintenance, and renovations (5%); facilities and maintenance (4%); reserves and contingencies (4%); research and library costs (2%); campus-specific student aid (2%); and capital construction (2%). Notably, the largest investment annually was in personnel, encompassing faculty, librarians, and staff, who played a pivotal role in advancing the academic mission.

Ms Esteban continued the presentation to discuss complement planning. Between 2010 and 2020, UTM implemented an ambitious plan of faculty hiring, adding approximately 150 net new positions, which significantly improved the student to faculty ratio. However, the same investment was not made in supporting staff during that period, necessitating catch-up efforts to ensure adequate resources for the campus. For staff hires in 2024-25, positions included facilities staff for maintaining the new science building and limited administrative positions, including approximately three continuing positions and 11 one-time-only positions with a two-year term.

Additionally, UTM participated in U of T's Diversity in Academic Hiring Fund and Indigenous Hiring Fund for both faculty and staff, with approvals for new hires. Specifically, a new hire for the UTM Department of Psychology was approved for Diversity Hires funding for the 2024-25 fiscal year.  It was also noted that UTM continued to invest in students. The efforts to diversify internationally continued, including through international scholarships, to reduce dependence on a single source country. UTM allocated a percentage of international tuition for international scholarships, with the percentage increasing since 2021-22 and remaining at 6% annually thereafter. Additionally, UTM invested in prestigious entrance awards of $25K or $45K, renewable for three years, to recruit promising students nationally and internationally and ensure accessibility to a world-class education regardless of financial circumstances.

Next, investments in new initiatives for 2024-25, related to UTM’s strategic plan were discussed. UTM launched the Student Advising Project and approved the hiring of a Student Recruitment and Admissions Officer to strengthen enrolment operations. To promote collaboration and belonging, UTM supported the continued and expanded delivery of SEE@UTM, a pathway for Black students in Peel District High Schools. For research discovery and impact, UTM approved the recruitment of an Academic Graduate Coordinator to foster graduate student training and support. Additionally, a Research Communications Officer position was approved to amplify faculty work and advance research goals. With respect to the goal of embracing the community, UTM hired two positions for the UTM Co-op Internship Program, connecting students with job opportunities in priority industries. Lastly, UTM invested in sustainability and climate-positive strategies, including implementing energy efficiencies, as part of its goal to go carbon neutral before 2043 and to capture more carbon than the campus emitted by 2050.  The budget included allocations for new buildings, renovations, and maintenance, contributing to efficient and sustainable operations. Plans included opening the student services hub, the new science building, and developing proposals for renovated space. Additionally, budgets were allocated for UTM’s Infrastructure Plan, renovations, and deferred maintenance.

During the question-and-answer session, members asked about various strategies related to enrollment, particularly focusing on the decline in international student applications. It was noted that the ongoing impact of the pandemic, coupled with geopolitical tensions, had led to a decrease in international student interest. Specifically, applications from countries like India had sharply declined. The Federal government's announcement regarding the international student cap was identified as a significant factor influencing prospective students' decisions.

Efforts to address this enrollment challenge were highlighted, with UTM implementing strategies to offer admission to students earlier in the cycle and considering applicants with slightly lower admission averages. Additionally, initiatives were underway to intensify outreach efforts, to encourage international student enrollment.

The discussion also touched upon the university's budgetary considerations, particularly regarding deficits. It was emphasized that any planned divisional deficits required approval from central planning and budget, along with a repayment plan over a specified period. UTM’s goal remained to strive for a balanced budget annually.

Regarding the strategic significance of the student-to-faculty ratio, questions were raised about its implications for faculty hiring. While there was no specific target for the ratio, efforts were made to maintain a stable ratio that compared favorably to other divisions within the university. The importance of maintaining a favorable ratio for student learning and faculty workload management was underscored.

Members also inquired about the university's ability to guarantee admissions for international students and address concerns about visa issues. While the university could not guarantee admissions, measures were in place to ensure that admission offers aligned with the available resources for visa approvals. Efforts were underway to reassure prospective students about the admissions process and dispel misconceptions through targeted outreach initiatives.

5. Reports of the Presidential Assessors
   
   At the invitation of the Chair, Mr. Barber provided an update on deferred maintenance.  He highlighted the institutional 2023 deferred maintenance report, which was published earlier that year and presented through university governance.  He explained the concept of deferred maintenance and presented various metrics indicating that UofT lagged behind in deferred maintenance compared to provincial and national averages. He also discussed the scarcity of funding despite rising costs, leading to a decline in investments.
   
   Mr. Barber pointed out that UofT’s deferred maintenance backlog increased by 1.8% last year, reaching 18.2% overall for the tri-campus. Despite UTM having relatively newer buildings, funding remained insufficient to address deferred maintenance adequately. He noted that 51% of UTM’s campus structures had been built since 2000. This concentration of new construction meant that a significant wave of aging and renewal would occur around 2029-2031, posing a challenge for future maintenance and investment planning. The immediate risk concerned linear assets such as underground utilities and cabling, which were essential for campus operations. To address these risks, UTM had implemented programs to manage deferred maintenance and improve asset management, with a focus on the underground asset program. He outlined UTM’s strategy to address deferred maintenance, emphasizing a data-driven approach to funding allocation and integrating deferred maintenance work into new construction and academic projects. He highlighted the upcoming opening of the Student Services Hub as an example of incorporating maintenance work into ongoing projects.
   
   Members had no questions.