2014 - 2015 Budget: Coming soon
McGill's total anticipated FY2014 budget across four funds: operating, restricted, capital, and endowment.
*includes research and endowment funds
Total projected operating expenses
FY 2013 actual annual deficit
FY 2014 projected annual deficit
Cost-reduction measures to address operating revenue shortfall
Voluntary retirement program and other staff reduction measures
Non-salary related savings
The cost-reduction measures are devised to preserve McGill’s academic and research mission and excellence, and balance the budget within the next two years, as planned in the last multi-year budget.
Once the budget is balanced, the University must attempt to generate sufficient surpluses to begin paying off the projected accumulated cash deficit of about $125M, and begin addressing total liabilities in the accumulated deficit.
Effect of the cost-reduction measures:
Student Financial Support
in student aid, from the operating budget. McGill is committed to contributing at least 30% of incremental net tuition to student aid.
in student aid from other sources, including the Restricted Fund (donor funded fellowships and other endowment income).
Debt incurred from infrastructure expenses constitutes a significant portion of McGill’s annual operating budget.
government cuts to operating revenue
loss of 2012 tuition increase
Additional growing expenditures
Pension plan under increasing pressure
Less money coming in—due to lower investment returns—and more money going out—due to low interest rates and increased life expectancies—means that future pension liabilities are increasing faster than the anticipated growth in the Plan’s assets. This puts McGill’s pension plan and operating budget under increasing pressure. More information.
McGill’s pension plan deficit is expected to more than double over 3 years.*
Pension deficit as of December 2009
Estimated pension deficit as of December 2012
As a result of deficits, the special contributions needed to offset funding deficiencies in the pension plan are increasing at a rate that is not sustainable.
*Deficit based on an evaluation basis. The solvency deficit (i.e. the amount that would be needed to meet all obligations if the pension plan shut down immediately) is higher.
Buildings and infrastructure
The need to maintain and repair older buildings creates significant financial demands.
(according to a 2009 study)**: Amount of deferred maintenance accumulated over time due to lack of funding.
Estimated annual amount needed (over the last six years), on top of current maintenance funding, to meet recommended maintenance standards.
** for buildings that fall under the government grant as well as student residences
Despite our chronic underfunding, McGill ranks as one of the top universities in the world. The University has placed:
among Canadian medical-doctoral universities in Maclean's annual rankings for the last seven years (2005-2011)
in the QS World University rankings in 2012
in the Times Higher Education World University Rankings in 2012
in the Academic Ranking of World Universities (ARWU), in 2012, as compiled by Shanghai Jiaotong University.
|Maclean's Medical Doctoral 2012||QS World University Rankings 2012|
* indicates a tie
Degrees that get you noticed
In a 2012 survey, employers ranked McGill's degrees as the 33rd most-prestigious in the world, the highest ranking earned by a Canadian institution.
|QS Employer Rank 2012|
Highly rated financial management
Recognition for Budget Process
The Government Finance Officers of North America recognized McGill with a recent distinguished budget presentation award.
Outstanding credit rating
In a December 2012 report, Standard & Poor’s Ratings Services confirmed McGill’s credit rating at AA- (Stable), one notch above that of the province of Quebec. As the report states, this is proof of McGill’s “excellent student-demand and research profile” and a moderate debt load, relative to its peer institutions.
Top 25th percentile for pension management
The McGill University Pension Plan sits in the top 25 percentile of a comparator group of Canadian pension plans (BNY Mellon asset servicing).