Budget FAQs
Understanding UVic's operating budget
These are general FAQs regarding UVic's budget (updated May 3, 2024). Visit our FAQs on the 2024/25 budget.
Q. What’s an operating budget?
UVic is responsible for the financial stewardship of over $700 million in total annual revenues. To enhance accountability, budgetary control and oversight of externally restricted resources such as research grants, UVic maintains separate funds for its diverse activities.
The general operating budget includes the general operations for the university—everything from salaries and benefits, to scholarships and bursaries, to keeping the lights on. It is composed of two parts: general operating revenue and general operating expenditures. Total operating revenue for 2024/25 is projected to be $505 million in 2024/25.
Other funds separate from the operating budget include:
- ancillary enterprises fund – the operation of service areas that are considered self-funded operations (e.g., student residences, food services, parking services, child care services, university bookstore and computer store, and off-campus properties);
- specific purpose fund – contract services, special projects, and distributions from the university’s endowment funds;
- sponsored research fund – external grants provided specifically for research; and
- capital fund – accounts for funds provided for the acquisition of capital assets and to conduct major renovations.
Source: Planning and Budget Framework 2024/25
Q. How are UVic's operations funded?
Operating costs for the university are funded from two main sources: government grants, which accounts for 57% or $287 million of operating revenues, and student fees (tuition), which accounts for 32% or $161 million. Department revenue, other grants and contracts, federal grants and investments make up the remaining percentage of revenue.
Source: Planning and Budget Framework 2024/25
Q. Has UVic's operating grant changed over time?
Over the last 5 years, UVic's operating grant has increased 35%, mainly the result of funding for general wage increases and some targeted funding for expansion. This increased funding has resulted in the operating grant revenue increasing to 57% from 50% of operating revenue.
Without this increased support from the province, our projected shortfall for 2024/25 would be almost $30 million, rather than the $13 million communicated in February 2024.
Q. How much of UVic’s operating budget goes towards salaries and benefits?
Annually, approximately 80% of UVic's operating budget goes toward salaries and benefits.
Additional information about UVic’s operating budget is available in the Planning and Budget Framework.
Enrolment
Q. What does enrolment have to do with UVic’s operating budget?
Approximately 90% of UVic’s operating budget is directly connected to enrolment, through the provincial operating grant and tuition revenues.
Tuition from international students makes up approximately 31% of total tuition revenue, whereas international student enrolment comprises 12% of full-time equivalent (FTE) students.
International undergraduate students pay more in tuition than domestic students because their education is not funded by the provincial government. The provincial grant is based on UVic’s domestic and graduate enrolments.
Any enrolment shortfall has a longer-term impact than just the initial year in which it happens. A decline in new student intake impacts the next four to five years—the time we expect a student to complete their program here at UVic. While we are taking steps to manage new intake next year for both domestic and international students, we will not fully match the international enrolment levels that our current base budget is built on.
Q. How are enrolment targets set?
The BC Ministry of Post-Secondary Education and Future Skills (PSFS) sets domestic enrolment targets for UVic based on annualized FTEs, and UVic’s Board of Governors approves all enrolment levels to help meet those targets.
UVic’s operating grant, like other post-secondary institutions in BC, is provided by PSFS based on our domestic undergraduate and graduate enrolment targets. This represents our “PSFS-funded target.” We submit a Board-approved Institutional Accountability Plan and Report to PSFS every summer that demonstrates whether we have met those domestic and graduate targets. UVic consistently meets or exceeds our PSFS targets, and we expect to do so again in 2024/25.
Internally, UVic sets a higher internal target for enrolments for the purpose of its own academic and budget planning, which takes into account international undergraduate students (who are not grant funded by government and thus pay more in tuition), along with domestic and graduate students.
UVic is funded to enrol:
| Student FTEs | |
| Undergraduate domestic students | 14,353 |
| Graduate students | 2,355 |
| Total funded | 16,708 |
Q. If we enroll more domestic students, do we get more funding from the provincial government?
No. Government funds up to our domestic-enrolment target, which they set. Any additional students we enroll provide only tuition revenue, which is insufficient to cover the full cost of their education.
UVic works with the BC Government on targeted expansions of specific programs of interest. These expansions increase our enrolment targets and provincial grant amounts. UVic recently received grant funded increases for programs in engineering and computer science, social work, health information science, and nursing.
Other
Q. Why can't UVic reallocate funding for capital projects?
It takes years to plan for major capital projects. The university has a legal obligation to spend funds on their intended purpose, as stipulated by the source of the mainly external funds. For example, the federal and provincial governments granted UVic funds to construct the National Centre for Indigenous Laws—legally, we are not permitted to spend those funds on another project or put those funds towards our operations (including salaries, supports, services, etc.). This also applies to any routine capital funding from the province to address deferred maintenance of our buildings.
Facilities planning is an ongoing process, and capital expenditures are critical in order to address changes in student demand and support services, as well as evolving research and teaching requirements. The capital projects currently underway are essential to the long-term success of our academic mission and our strategic enrolment goals.
Q. Who is responsible for budget decision-making at UVic?
Aligned with BC’s University Act, UVic’s Executive Council and Board of Governors are responsible for institutional decision-making related to budget, in consultation with other senior leaders, including Deans and Associate Vice-Presidents. Executive Council includes the President, five Vice-Presidents and the University Secretary.
Deans and other university leaders are responsible for decision making within their faculties and units, based on institutional direction. Leaders will have some flexibility, resources and supports to manage any reductions within their portfolios.
Visit our FAQs on the 2024/25 budget process and additional details