April 5, 1999

1999-2000 Operating Budget

• Table 1: 1999-2000 Operating Revenues
• Table 2: Base Budgets for Faculties
• Table 3: Scholarships and Bursaries
• Table 4: Base Budgets for Support Areas
• Table 5: Corporate Expenditures and Employee Benefits
• Table 6: One-Time Allocations
• Table 7: Summary of Operating Budget
• Table 8: Operating Reserve
• Table 9: Final 1998-99 Enrolment Contingent Fund (ECF) Allocations
• Table 10a: 1999-2000 Tuition Fees for Canadian Students
• Table 10b: 1999-2000 Tuition Fees for International Students
• Table 11: Summary of Enrolment Forecast
• Table 12: 1999-2000 Provost's Academic Support Fund Initial Allocations
• Table 13: 1998-99 Provost's Academic Support Fund Allocations

1999-2000 Capital Budget

Capital Budget Tables

• Table 14: Capital Budget Revenues
• Table 15: Capital Budget Expenditures
• Table 16: Capital Reserve
• Table 17: 1998-99 Capital Plan Projects
• Table 18: 1999-2000 Capital Plan Projects
• Table 19: Future Major Projects
• Table 20: Unit-Funded Capital Projects
• Table 21: Residence Projects

April 5, 1999

Western's extensive annual planning process includes both a focus on the resources required for the next academic year and a recounting of the challenges and accomplishments of the year in progress. The details of the latter component of the pl anning process are described in Appendix A of this document ­ "Report on the 1998-99 Quality Improvement Plan." This report tells a story of the determination of Western's faculty and staff to continue to offer our students the best possible educational e xperience and to sustain our record of excellence in research and scholarship. The account reflects a commitment not only to maintaining existing programs but to pursuing new directions emerging from developments in scholarship and changes in society. Our community's accomplishments are remarkable, especially under the current straitened fiscal circumstances.

At the same time, a single theme of underfunding in all units permeated discussions during the recently completed planning cycle. Discussions of student tuition fee levels and financial aid underscored the fact that Ontario's students are now personall y funding a greater percentage of the total cost of their education than their counterparts in any other part of Canada. Yet, cutbacks in the operating budget in recent years have resulted in each member of our faculty teaching, on average, 30% more stude nts than was the case a decade ago. The student-faculty ratio in Ontario is 21% higher than the average in the other 9 provinces. Seen from the student's perspective, despite paying higher fees, each Ontario student has access to 21% less faculty time tha n students elsewhere in the country. The message emerging from the planning process is clear: Western's students, staff, and faculty are pitching in, they are doing more than their share -- it is time for the Ontario government to match this commitment to university education, recognize its centrality to the province's social and economic future, and to provide a level of public funding worthy of the wealthiest province in the country.

In terms of government reinvestment in Ontario's universities, we need a broad approach, not one based on limited targetted programs. At Western, for example, among our many strengths are the Faculties of Arts, Social Science, and Science, which are vi tal centres of scholarship for the University and are responsible for a high proportion of instruction for undergraduate and graduate students. Only a broad approach to grant increases will allow Western to reinvest properly in these three Faculties, whic h are at the heart of any large research-intensive university. We continue to believe that Ontario should commit to carrying out Recommendation 2 of the Advisory Panel on Future Directions for Postsecondary Education (the "Smith Commission" which reported in December, 1996), which called for Ontario's grants to be raised to the average of the other nine provinces in per capita terms. Such an initiative would add some $50 million to our base budget at Western.

The terminology "Quality Improvement" was introduced by the Ontario Government in its last budget. The evidence provided during this planning cycle demonstrates convincingly that Western's students, faculty, and staff have done all that can be expected to ensure the quality of the University's programs. We will continue to strive to meet this objective but any realistic expectation of the maintenance and improvement in the quality of university education and of continued access for an increasing number of Ontario's students is a function of the government's actual commitment to higher education in this province.

Last year, in its 2-year announcement for 1998-99 and 1999-2000, the Government of Ontario announced that grants to universities would be frozen in 1998-99 and increase by 1% in 1999-2000. This increase in government funding marks the first for Ontario's universities since 1992-93 but is woefully inadequate. Government underfunding remains the fundamental financial problem at Western, as at all Ontario universities. The continual reductions of real government funding per student over the last two decades have left Ontario's universities with the lowest government grants per capita in the country. An additional investment of more than $500 million would be required simply to bring Ontario universities up to the national average in governm ent grants per student; Western's share of those additional funds would be over $50 million. If we had only a small fraction of those funds this year, we could begin replacing the hundreds of faculty and staff positions lost during the past decade (see Fi gure1).

The problems of government underfunding of Western's operating budget are compounded by a grossly inadequate annual government capital fund ($1.3 million), requiring that we transfer substantial operating budget funds to capital for deferred maintenanc e, classroom upgrades, equipment, and other capital needs. Western, the Council of Ontario Universities, and faculty, staff, and student groups will continue to press the case for a government commitment to bring our public funding up to the national aver age.

Increases in student tuition fees, many approved in the budget plan of the spring of 1998, will bring additional revenue to the University's operating budget in 1999-2000. The significant increases in tuition fees during the 1990s have made student fin ancial aid a very high priority at Western. Substantially higher tuition fees for students in our MD, DDS, and HBA programs will permit special investments in the Faculty of Medicine and Dentistry and the Richard Ivey School of Business. At the same time, additional financial aid will be targetted to students in these three programs. In addition, the province's Access to Opportunities Program (ATOP) will bring substantial new targeted revenue for the expansion of programs in information technology in Engi neering and Computer Science. Figure 2 illustrates a 14-year history of changes in Adjusted Real Operating Revenue expressed in constant dollars, excluding student support funding, self-funded programs, and funds transferred from the operating budget to t he capital budget.

Increased revenue from higher tuition fees would be insufficient to compensate for the cumulative impact of reductions in government funding and unavoidable expenses even if our costs remained constant. This situation is compounded by the fact that, de spite unprecedented cost efficiencies, the University continues to face unavoidable increases in its expenses. Beyond the pressures of inflation in basic non-salary areas, substantial expense increases include the need to improve and expand classroom faci lities, the rising costs of library acquisitions, the costs of the implementation and development of an entirely new information system across campus, major deferred maintenance costs, and anticipated faculty/staff salary costs.

These inevitable expense increases occur in a context in which the full force of the major cutbacks of recent years is now being felt across campus. As is evident from the dramatic reduction in institutional carryforward over the past three years, acad emic and non-academic units are operating at, and in some cases beyond, the limit of their resources. The millions of dollars in accumulated underspending that have supported unit operations in the immediate aftermath of the withdrawal of government fundi ng will not be available in 1999-2000. Vital new initiatives in teaching and research have already been impeded by budgetary reductions; continuing real cuts to academic and support units place increasing pressure on the budgetary planning process.

The planning meetings with the Faculties and support units identified a number of educational priorities, many of which continue from previous years. Following the well-established planning cycle at Western, Deans and budget unit heads construc ted annual plans on the basis of the guidelines circulated early in the fall of 1998, after consultation with members of faculty and staff. These annual plans formed the basis of planning meetings with the President and Vice-Presidents that stretched into mid-December, 1998. The 1999-2000 Quality Improvement Plan builds on the results of our 1998-99 Quality Improvement Plan, which are set out in Appendix A.

As expected, the primary focus of these planning sessions was the need for additional faculty and staff to maintain and expand the quality of our scholarly and educational activities. Figures presented in this document provide stark evidence of the imp act of recent budgetary cutbacks on Western's human resources. The central place of our members of faculty in supporting our educational and research mission is obvious, but this year's planning process underscored the negative consequences of dramatic re ductions in non-academic staff on our academic programs. The need to sustain faculty and staff resources, therefore, provides the context for many of the recommendations for 1999-2000.

At the same time as Deans and budget unit heads strive to maintain their human resources, there is increasing pressure to restore non-salary lines that have been decimated by recent budget cuts . It is clear that a first-rank university cannot be susta ined without adequate funding for such vital expenses as research start-up funds for new faculty, academic travel, staff and faculty development programs, computer and information technology acquisition, renewal related to both research and teaching, and basic supplies.

Finally, increasing tuition fees demand that the University maintain its commitment both to increased student financial aid and the services necessary to ensure that this aid reaches the right students at the right time.

In this time of reduced government support, the challenge of allocating resources to meet academic priorities has become more complex and difficult, at the level of the Faculty and budget-unit, and for the University as a whole.

The academic priorities identified through the planning process form the basis of Western's 1999-2000 Quality Improvement Plan. The specific components of the Plan are as follows.

The 1999-2000 budget includes a number of investment proposals in many Faculties, and many of these are directly related to program expansions. The total value of these investment proposals is $1.8 million and the focus of these proposals has b een on much-needed faculty renewal. Over 50 tenure-track faculty appointments have been approved for the coming year.

The Faculty of Medicine and Dentistry offers two of Western's leading professional programs and makes a substantial contribution to the University's performance in resource-intensive research. The quality of these high-cost programs is signific antly threatened by inadequate government funding. Revenue flowing from increased tuition fees in both our dental and medical undergraduate programs provides for reinvestment in these programs that will increase directly the quality of the educational exp erience and renew the academic personnel and physical resources of the Faculty.

Western's strategic plan identified support for the Faculty of Engineering Science as a priority for the University's aspirations in advanced technology and in resource-intensive research. The special budget investments of the past three years continue in 1999-2000 and an additional $200,000 in base funds is being allocated to support new faculty and technical staff appointments. These funds will be supplemented by those associated with program expansion under the Government's ATOP program.

Undergraduate and Graduate student recruitment continues to be a top priority for Western; $350,000 is being allocated in direct support of recruitment initiatives in 1999-2000.

The acquisitions budget within the Library System is being increased by over $400,000, or 5%, in recognition of the University's commitment to maintaining and improving a resource which is vital to all areas of education and scholarship.

The innovative certificate program in writing, introduced last year by the Faculty of Arts, will have expanded course offerings in 1999-2000; the total estimated budget allocation for the program is $190,000.

The CFI and the ORDCF programs, introduced last year, provide the University with unprecedented opportunities to pursue funding for the renewal and creation of infrastructure necessary for resource-intensive research and graduate education. Wes tern's commitment to provide "matching" funds continues in 1999-2000 and an additional $2.5 million is being allocated.

The University's commitment to deferred maintenance arising from the Strategic Plan continues. In 1999-2000, the recommended deferred maintenance base budget is increased by another $750,000 ­ bringing the total annual transfer from the Operati ng Budget to $3.5 million.

In addition to addressing overall deferred maintenance on campus, these funds will be used in 1999-2000 to fund in part the expansion and improvement of classroom facilities across campus ­ in Somerville House, Talbot College, and Elborn College. These additional classrooms are a critical component of Western's plans to increase access to programs of high demand in Engineering, Computer Science, Health Sciences, and Business. It should be noted that a significant portion of the renovations in Somervill e House, Talbot College, and Elborn College will address deferred maintenance issues.

Our undergraduate programs also require larger classrooms to accommodate courses in expanding programs. The increase in the number of large classes in recent years has made it very difficult to accommodate and schedule such classes. As part of the 1999 -2000 Capital Budget (included in this document), funds are being allocated to create a classroom with capacity of at least 650 seats, to be ready in the fall of 2000. The projected cost of this project -- over 2 years -- is about $3 million, with $800,00 0 to be allocated in 1999-2000. Detailed proposals, when ready, will be brought forward through the normal committee approval process.

As an outcome of the annual planning process, many instruction and research related initiatives are being funded in 1999-2000 from the Provost's Academic Support Fund (PASF). The range of projects include classroom instructional technology and student laboratory equipment upgrading, development of programs in Ethics, Commercial Aviation Management, and Gay/Lesbian/Bisexual Studies, and faculty development. Total funding for these initiatives amounts to about $600,000.

Total Operating Revenues are projected to increase by 5.5% as shown in Table 1.

Last year, as part of a two-year grant announcement, the Government of Ontario announced that Operating Grants to Ontario's universities would be increased by 1 % in 1999-2000. This 1% increase, coupled with the recently announced fair-funding grant, aimed at achieving funding equity among universities, is expected to result in an overall 1.3% increase to Western's base grants (Table 1, line 2).

The Provincial Government's Access to Opportunities Program (ATOP) will provide Western with targeted increases in base and one-time funding (Table 1, lines 3 and 4). For 1998-99, ATOP base funding amounted to $1.2 million, and one-time funding to $2.4 million. Details of the 1999-2000 allocation are not yet available from government, but base funding is projected to be $2.3 million and one-time funding $2.6 million. The $2.6 million in 1999-2000 is shown as revenue in the Capital Budget (Table 14, lin e 4), and will be used to fund those renovations in Somerville House, Elborn College, and Talbot College which provide academic space for Western's ATOP initiatives.

The phase-out of the international student fee redistribution mechanism, which resulted from the deregulation of international student tuition, will be complete in 1999-2000, and will reduce revenues by $248,000 (Table 1, line 8).

In the spring of 1998, the University Senate and Board of Governors approved tuition fees for both 1998-99 and 1999-2000 for the majority of our programs. For Canadian students, a 9.8% increase was approved for 1999-2000, for all first-entry un dergraduate programs (excluding Engineering), and an increase of 5.0% was approved for 1999-2000, for Master's Category 1 and Ph.D. programs.

Because of a changing distribution of students by program from year to year, it is not possible to estimate precisely the total tuition fee revenues in regulated programs. These tuition fees are controlled by MET regulations and annual adjustments may be required in order to adjust for actual final tuition revenue calculations from the previous year. Final tuition revenue calculations for 1998-99 revealed that Western had collected fees that slightly exceeded the regulated maximum and, therefore, a min or downward adjustment to the proposed 1999-2000 first-entry undergraduate tuition is required. This adjustment will result in a tuition fee of $3,845 for first-entry undergraduate programs (excluding Engineering), a 9.4% increase over 1998-99. As indicat ed in the January 22, 1999 document titled "Preliminary 1999-2000 Budget Recommendations for Faculties", this adjustment will be effective in September, 1999, and will have no impact on the spring and summer fees (set at the level for 1999-2000 approved b y the Board in the spring of 1998).

Recommended Canadian student tuition fees for 1999-2000 for all remaining programs are shown in Table 10a. In addition to these fees for the coming year, tuition fee recommendations are being made for two additional years for undergraduate programs in Business (HBA), Dentistry, and Medicine, as follows:

Following extensive consultation and representations by students and faculty in the Faculty of Medicine and Dentistry, it is recommended that the decisions taken by the Board in last years's budget plan to charge a $1,500 tuition fee to students in Wes tern's medical residency program be rescinded. Although the arguments presented at that time still stand, the decision by three of Ontario's other medical schools not to charge the fee places our programs at a relative disadvantage in recruitment.

These latter two tuition fee recommendations for Medicine differ from those contained in the January 22, 1999 document titled "Preliminary 1999-2000 Budget Recommendations for Faculties". The revised recommendations (a) delay the originally proposed in crease to undergraduate Medical student tuition , and (b) remove the already approved tuition fee for Medical residents. These changes will result in lower tuition revenue for 1999-2000, and a reduction in the planned increased budgetary allocation to the Faculty of Medicine and Dentistry.

All new tuition fee recommendations for Canadian students are being made after extensive consultation with student groups and Deans during the planning process. The tuition fees in Dentistry, Medicine, and the HBA are discussed in the context of specia l student aid programs and reinvestment in those programs later in this document.

A set of proposals are aimed at rationalizing and simplifying international student tuition fees. By the year 2000-01, it is recommended that all international tuition fees (excluding Medicine (MD), Dentistry (DDS), Family Medicine, Orthodontics, and t he MBA) be set at one of only three levels, as follows:

$9,000	for undergraduate students in Arts, BHSc, Kinesiology, M.I.T., Music, Science, and Social Science; Master's category 1 and all Ph.D. programs;
$12,000	for undergraduate students in Engineering, Nursing, Communication Sciences and Disorders, Physical Therapy, Education, and Law;
$14,000	for undergraduate HBA and all Master's category 2 programs.

Table 10b shows the recommended international student tuition fees for 1999-2000 and 2000-01.

Of course, final tuition fee revenue is determined by actual enrolment. The enrolment projections approved by SUEPP (SCUP's Subcommittee on Enrolment Planning and Policy) are shown in Table 11. Full-time undergraduate enrolment is projected to incr ease by 2.2% in 1999-2000 -- a result of the anticipated flowthrough of higher student intake in the preceding two years and planned expansions in the HBA, Engineering, and Computer Science. Projected growth in graduate enrolment reflects primarily the pl anned expansion of the MBA program.

Overall tuition revenue is projected to increase by 14.8% ­ largely due to increased enrolments and tuition rates in the Executive, Video, and Full-Cost-Recovery MBA programs, revenue that is used to support directly these full cost-recovery programs. Undergraduate tuition revenue is expected to increase by 14.0% and graduate tuition revenue is expected to increase by 7.2% ­ resulting in an overall regular tuition increase of 13.1% (see line 14 in Table 1). This net increase in revenue is a function of overall increases in enrolments, proportion of international students, and tuition fee rates. Program expansions in Education, HBA, Engineering, MIT, and Health Sciences, and projected growth in international student enrolment contribute significantly to increases in tuition fee revenue. Excluding self-funded programs, the average tuition paid by an undergraduate student increases by 10.7% and the average tuition paid by a graduate student increases by 5.0%.

Major items of note in other revenues include: Affiliate Cross-Teaching Revenue, Investment Income, Application Fee Revenue, and Contributions from Ancillaries and Other Operations.

• Revenue from the cross-teaching with the Affiliated Colleges is expected to increase because of increases in the number of students being taught in classes on the main campus.
• The University's investment portfolio has generated significant returns over the past few years and these returns have made it possible to transfer a total of $8.5 million to the Operating Budget again in 1999-2000. Of this total, $2.5 million is spec ifically allocated as the University's matching fund commitment to the CFI/ORDCF programs. As noted in past years, this unusually high draw on investment income cannot be sustained in the long run and must eventually be replaced through increased revenue from other sources and/or reductions in operating expenditures.
• The projected increase in Application Fee revenue is due to the increase in applications for first-year admission.
• The projected growth in administrative fee revenue (line 32 in Table 1) is the result of the agreement with the Ivey School of Business as part of the Full-Cost-Recovery (FCR) MBA program. Under this agreement, the FCR-transfer for the Ivey School's e xecutive education programs (which includes public/custom programs, Executive and Video MBA, and the FCR-MBA) will increase to 8% of revenues in 1999-2000 ­ from the current level of 7%. This FCR-transfer will increase to a stable rate of 12% of revenues in 2002-03. Of the $4.3 million in Administrative Fees in 1999-2000, about $2.0 million is from the Ivey School of Business.
• Western's ancillary units generate substantial revenue for the University Operating Budget by way of direct contributions and charges for facilities and services. The decline in direct ancillary contributions in 1999-2000 is a result of lower revenues from Parking fees, in part a result of the success of the bus pass program initiated by the University Students' Council.

The 1999-2000 base budget allocations to Faculties are shown in Table 2. Targetted allocations related to the Government of Ontario's ATOP initiative are shown in line 24 of Table 2. Final allocations to the Faculties involved in the ATOP progr am will be a function of actual program enrolments and the distribution of actual teaching activity related to these students. An algorithm for the allocation of these funds has been established and is included as Appendix D to this document.

As indicated in column b of Table 2, the budget recommendations begin with an initial reduction of 1.5% to all Faculties, except the MBA portion of Business, and Engineering Science. The reductions are necessary to fund cost increases at the Un iversity, particularly during a period when we are not recovering turnover savings centrally.

In the years prior to 1996-97, the annual budgeting process at Western saw funds arising from faculty member resignation or retirement that exceeded 1.4 times the floor salary of an Assistant Professor returned to the central University budget ­ someth ing of an invisible budget cut to the academic units. These "turnover savings" contributed substantially to funding the routine increases in expenses referred to in the preceding sections of this document, i.e. inflation, annual salary increases, etc. Sin ce 1996-97, all funds arising from retirements and resignations have remained within the Faculties. The principal consequence of the change in policy for the University planning process is that turnover savings are no longer available to cover increasing central costs. In the absence of adequate increases in revenue, these unavoidable expense increases must necessarily be reflected in budget cuts, now quite visible, to the units. (Note that a substantial portion of these increased costs will be associated with faculty and staff salary increases that ultimately will be reflected in increased unit budgets). The 1999-2000 budget recommendations, thus begin with a cut of 1.5% to most Faculties. The proposed reductions would be lower if the turnover savings po licy was still in place. The turnover savings policy is currently under review.

With the proposed 1.5% reduction as the starting point, significant budget additions are recommended to a number of Faculties.

Tuition fee levels in Medicine, Dentistry, and the HBA were increased in 1998-99 to levels substantially above those of other programs at Western. If Western is to continue to attract the best students to these programs, it is essential that st udents receive the best educational experience possible. This experience can only be achieved by investing in these programs through the appointment of additional members of faculty and through the renewal of the physical infrastructure of the associated Faculties and Schools.

As indicated in Table 2, the base operating budget for Business: Non-MBA, Dentistry, and Medicine will be reduced initially by 1.5% for 1999-2000, and will be subject to the same annual budgetary review as other Faculties in future years. Beyond this i nitial review and adjustment, specific tuition-revenue-based budget investments in these programs are recommended as follows:

Many qualified students are denied access to the HBA program each year because of a lack of available spaces. A plan for the expansion of this program was suggested in the University's 1998-99 budget. To facilitate this expansion and provid e increased access, it is recommended that a substantial proportion of the revenue arising from tuition fees from additional students be reinvested to support the additional faculty, support staff, and space necessary to open a third section of the HBA, i ncreasing total enrolment from 288 to 432 students. The base budget cost of this expansion will total $1.2 million. Because of the challenge of hiring qualified faculty, $600,000 of these funds is being allocated in the current, 1998-99, budget year. The remainder of the funds will be allocated to the Ivey School in 1999-2000.

The Faculty of Medicine and Dentistry continues to offer two of Western's leading professional programs and to make a substantial contribution to the University's performance in resource-intensive research. Increased tuition fees in both ou r dental and medical undergraduate programs provide funds for reinvestment in these programs that will include initiatives directly affecting the quality of the educational experience of our students and allowing for the renewal of academic personnel and physical resources of the Faculty.

The tuition revenue-based investment recommendation for Dentistry consists of two components:

• Annual base budget investment of $200,000, $80,000, and $80,000 in 1999-2000, 2000-01, and 2001-02, respectively. The 1999-2000 allocation is shown in Table 2, line 11.
• Annual allocation of $500,000 from the general University Operating Budget to the Capital Budget for the next 5 years (i.e. 1999-2000 to 2003-04), for a total of $2.5 million -- to renew and expand facilities within the Dental Sciences Building. The S chool of Dentistry will contribute an equal amount over the same period, to fund a facilities improvement/expansion project totalling $5 million. The School's annual $500,000 contribution to the facilities renewal project will be the first call on the Sch ool's budget from 1999-2000 through 2003-04. The 1999-2000 allocation is shown in Table 6, line 1.

The tuition revenue-based investment recommendation for Medicine consists of two components:

• A base allocation of $462,800 to the Faculty operating budget will be made in 1999-2000, to support special new initiatives, including faculty renewal and educational enhancement (see Table 2, line 12).
• An annual allocation of $500,000 from the general University Operating Budget to the Capital Budget for the next 10 years (i.e. 1999-2000 to 2008-09), for a total of $5 million -- to renew facilities within the Medical Sciences Building. The 1999-2000 allocation is shown in Table 6, line 2.

The January 22, 1999 document titled "Preliminary 1999-2000 Budget Recommendations for Faculties" recommended a higher level of base budget allocation to Medicine and noted clearly that, should Medical tuition fees fall below the levels recommended in that document, the reinvestment in the Faculty would be reduced. Since the final recommendations for tuition fees in Medicine (see section D.2) are lower than those proposed in the January document, the corresponding reduction in investment in Medicine is also recommended.

The transition of the MBA program to a full-cost-recovery program continues and the previously-planned budget reduction for 1999-2000 is shown in Table 2, line 3. As part of this transition to a full-cost-recovery program, the Ivey School retai ns all tuition revenue from the MBA program as well as the Executive/Video MBA programs, less the FCR-transfer described earlier. The increase shown in line 29 of Table 2 reflects the planned expansion of the MBA program.

Table 2 (line 5) reflects the initial 1.5% reduction, a change in funding practice for Additional Qualification (AQ) courses, and the allocation of $200,000 in support of the expansion of the B.Ed. program. The Faculty's share of tuition revenu e generated through AQ courses is being increased from 75% to 88%, consistent with the University-wide standard for such revenue-generating programs.

In anticipation of increased demand for teachers in the province, the Government of Ontario has requested universities to increase enrolments in teacher education programs, with the understanding that additional government funding will be provided. In response to this request, the Faculty of Education will increase its B.Ed. enrolment by 75 students to a level of 750. Budgetary support for this expansion is through a base budget allocation of $200,000, which will be supplemented by a similar amount fro m the Enrolment Contingent Fund (ECF). Continuation of the enrolment increase and the base budget addition beyond 1999-2000 is contingent upon a commitment of additional government funding.

Leadership in Learning identified support for the Faculty of Engineering Science as a priority for the University's aspirations in advanced technology education and in resource-intensive research. Special investments in the Faculty have been a feature of annual budgets for the past three years. These investments have had an impact. The Faculty has seen its resources expand at the same time as Faculties of Engineering Science elsewhere in the province and country have seen substantial reductions in their resources. Engineering has used this opportunity to its fullest advantage, making outstanding new faculty appointments and achieving marked success in recruitment in both its graduate and undergraduate programs. We believe a further special inve stment in Engineering is still warranted, and we recommend that the Faculty's base budget be increased by $200,000 in 1999-2000 (Table 2, line 6).

The Faculty of Engineering Science is at the centre of Western's response to the ATOP funding program. It should be noted that these ATOP funds are contingent upon government approval of our ATOP proposal and the Faculty's success at attracting the qua lified students necessary for the program expansions in Electrical, Computer, and Software Engineering.

As indicated earlier, the total additional funding stemming from the ATOP initiative is shown in Table 2 (line 24), and actual allocations to the Faculty of Engineering Science will be a function of program enrolments and the final distribution of asso ciated teaching responsibilities (see Appendix D).

A base budget increase of $100,000 to the Faculty of Health Sciences is being recommended for 1999-2000 (Table 2, line 8), in recognition of the significant expansion of the Kinesiology program and of the new BHSc program. The innovation and qu ality of these programs have contributed significantly to Western's success at maintaining and increasing the quality of its incoming class. The Faculty will also introduce in 1999-2000 a new inter-disciplinary PhD program in Rehabilitation Sciences that promises to be unique in the country and which will attract outstanding graduate students. Although a number of other Faculties contribute importantly to the BHSc, much of the increased teaching activity falls to the Faculty of Health Sciences, as shown i n the graph in Appendix B. Substantial allocations from the Enrolment Contingent Fund (ECF) have provided a large portion of the support necessary for the program expansion, but these funds were not designed to cover all the costs of a new program, in par ticular the administration and academic counselling costs associated with a program of this size.

After the initial 1.5% reduction, base budget funds are being allocated to the Faculties of Law, Music, and Information and Media Studies:

• $30,000 to support Law student scholarships. These funds will not reside in the Faculty of Law budget, but will be added to the University's undergraduate scholarship budget.
• $20,000 to the Faculty of Music to support student recruitment-related initiatives.
• $20,000 to the Faculty of Information and Media Studies to support student recruitment-related initiatives.

No allocations beyond the initial 1.5% reduction in base budget are recommended for the Faculties of Arts, Science, Social Science, and Graduate Studies. The Faculty of Science continues to be central to Western's aspirations in resource-intens ive research and has increased its contributions to graduate and undergraduate teaching, in large part by aggressively partnering in the BHSc program and in expansions of the undergraduate program in Engineering Science. The Faculty of Science has receive d substantial ECF funds (see Table 9, line 11). The Faculty will play a central role in Western's ATOP-based expansion, both in support of ATOP students in Engineering Science and through a planned doubling of intake into its programs in Computer Science. As indicated earlier, the total additional funding stemming from the ATOP initiative is shown in Table 2 (line 24), and actual allocations to the Faculty of Science will be a function of program enrolments and the final distribution of associated teachin g responsibilities (see Appendix D).

The Faculties of Arts and Social Science house some of the University's strongest programs of scholarship and graduate education and carry a major share of undergraduate teaching. These Faculties are critical to Western's scholarly reputation and our a bility to recruit outstanding students. In the severe budget cuts of 1996-97, caused by the government grant reduction of $22 million, the cut to each of these Faculties was 6.5% as compared to an average of 10.4% in all other Faculties. Appendix B shows the decline in Weighted Teaching Units in recent years in Arts and Social Science. The budgets in the two Faculties have been largely sheltered from those declines, with the result that from 1993-94 to 1998-99, base budget per Weighted Teaching Unit (WTU) increased by 9.1% in Arts and 6.7% in Social Science, while base budget per WTU on average in all other Faculties declined by 14.7%. The relative growth in base budget per WTU in the two Faculties was well deserved, given their teaching and scholarly res ponsibilities. No differential decreases in funding for Arts and Social Science are recommended for 1999-2000. It will become increasingly difficult, however, to avoid such differential reductions if overall funding to the University does not improve and current enrolment/teaching trends in these Faculties continue.

The ECF is now a well established feature of Western's annual budgeting process and over the past two years has had a substantial impact on the allocation of funds based on shifts in undergraduate teaching and graduate enrolment patterns across campus. Table 9 shows ECF allocations for 1998-99.

The ECF was introduced in 1997-98 to respond to shifts in enrolment/teaching across the University and to recognize efforts by academic units to attract and accommodate students in their classes, irrespective of their programs of registration. The ECF provides annual funds to the academic units based on growth in Weighted Teaching Units (WTUs) over pre-established baseline WTUs for each Faculty. The baseline for each Faculty is the lower of: (a) the average of the 1994-95, 1995-96, and 1996-97 WTUs or (b) the 1996-97 WTUs. In recognition of recent enrolment/teaching patterns within the Faculties of Arts and Social Science, the ECF baseline for these Faculties was further reduced, thereby giving these two Faculties increased access to ECF funding.

Weighted Teaching Units (WTUs) capture overall teaching activity within the Faculties. WTUs incorporate graduate enrolments from programs residing within each Faculty, undergraduate enrolments in professional Faculties, and undergraduate teaching ­ whi ch is measured by course registrants, irrespective of the students' Faculty/program of registration. The specific weights assigned to the various enrolment categories are:

First-Year-Level Course Registrants	0.2	(equates to 1.0 per FTE)
General-Level Course Registrants	0.2	(equates to 1.0 per FTE)
Honours-Level Course Registrants	0.4	(equates to 2.0 per FTE)
Education, Law FTEs	2.0
Medicine (M.D.) FTEs	4.0
Medical Residents	1.0
Dentistry (D.D.S.) FTEs	4.0
Master's FTEs	3.5
Ph.D. FTEs	7.0

The following self-funded and full-cost-recovery programs are excluded from ECF calculations: MBA, Executive/Video MBA, International Medical Residents, Faculty of Medicine's Malaysian Exchange Program, National Dental Examining Board Qualifying Progra m, Additional Qualification Enrolments in the Faculty of Education, and all non-credit programs/courses.

An important feature of the ECF is recognition of cross-Faculty teaching by individual members of faculty. If a course offered by a program in Faculty A is taught by a member of Faculty B (i.e. cross-Faculty teaching), the WTUs will be credited to Facu lty B and an additional 20% of the WTUs associated with the course will be credited to Faculty A.

It has been our intention from the outset that, where changes in enrolment patterns appear stable, ECF funding be converted to base operating allocations. Such stability now appears clear in the case of the Faculties of Engineering Science and Health S ciences. As a result, it is recommended that $750,000 of ECF funding for Health Sciences and $250,000 for Engineering Science be converted to base for 1999-2000; these base allocations for 1999-2000 will appear in the 1999-2000 budget. Consideration of su ch conversion will be given to ECF funding in other Faculties in coming years.

Appendix B shows WTUs in each Faculty since 1990-91. The Faculties are distributed into four groups according to the magnitude of WTUs in 1998-99, shown on the vertical axis.

The PASF continues in 1999-2000 and is being allocated to specific instructional and research initiatives within the Faculties. Table 12 outlines the initial recommended 1999-2000 PASF allocations, which are all one-time funds. Other academic i nitiatives will be considered for PASF funding during the year. One such project is a proposed distance delivery of our BACS program. For information, a detailed accounting of the PASF for 1998-99 is shown in Table 13.

Base budget allocations for student support are shown in Table 3. Overall student support funding is being increased by nearly $2.9 million for 1999-2000. The cumulative impact of this 15% increase in funding, shown in Figure 4, reflects Wester n's continuing commitment to the financial support of graduate and undergraduate students. Total student support funding has increased from $4.9 million in 1992-93 to $22.0 million in 1999-2000.

The base budget for undergraduate scholarships is being increased by $166,000, reflecting the projected increase in scholarship-eligible applicants to first-year admission and the allocation of $30,000 in support of Law student scholarships.

2. Needs-based Undergraduate Student Support

Total funding for needs-based student support, generated through the 30% required set-aside of tuition, donations to the University for needs-based awards, special programming funding from the Ministry of Education, and matching funds from the University for special work/study and bursary programs is expected to exceed $9 million in 1999-2000. The funds available through OSOTF, endowed awards, and special bursary programs will be disbursed by Financial Aid Services according to the criteria req uired by each award.

Western's continues to monitor the financial situation of students in all Faculties. Current mechanisms include the undergraduate exit survey, a study on direct-entry student finances in collaboration with the University of Toronto, Queen's University, Ryerson University, and York University, and information gathered through Western's Financial Aid Office. In order to supplement these current activities, plans are underway for a larger study on student finances, which will include students from all pro grams at Western.

Table 3, line 6 shows the budget associated with the funds generated by the required 30% set-aside of additional tuition fee revenues, which will be distributed as follows:

Work/Study Bursary Program	$4,000,000
Needs-based Bursaries	$2,650,000
Administration	$ 350,000
Total	$7,000,000

In 1997-98 and 1998-99, the work/study program provided employment to 1,350 students. In 1998, the summer program was expanded to accommodate more students who wished to work on campus, some of whom were supported by a program in which their ho me Faculty provided matching funds. There was a considerable increase in demand for work/study opportunities during the fall 1998 session, on the part of students wishing to take part in the program and by faculty members who wish to employ students.

To accommodate the increased demand, it is proposed that the funds directed toward work/study be increased. It is recommended that the number of students in the program increase to 1,750 in 1999-2000. In addition, work/study funds will be used again to support upper-year students in financial need who take part in a leadership training program and are then employed as mentors for new students in a program organized through the Centre for New Students. In 1998, 114 upper-year students were employed as m entors for 576 first-year students.

Students experiencing financial need often face challenging personal situations in which other avenues of support, including personal and family resources and loan opportunities, may be exhausted. From this fund, financial aid counsellors assig n bursary support to students throughout the year on an as-needed basis in order to ensure that they will be able to complete their programs of study.

As was the case in the current year (1998-99), Special Bursaries will be made available in 1999-2000 to OSAP-eligible incoming students in the three programs which have experienced especially large increases in tuition fees: MD, DDS, and the HBA. In ac cordance with the University's determination to maintain access to these programs for academically qualified students irrespective of their financial circumstances, Special Bursary programs were introduced at the same time as fees were increased.

For 1999-2000, it is recommended that the Special Bursary programs be expanded and that all of the 30% set-aside funds deriving from increased fees in these programs be devoted to these Special Bursaries or to needs-based assistance assessed on a stude nt-by-student basis. The specific proposals are:

Under the MET guidelines for the disposition of tuition set-aside funds for student financial aid, 5% will be used to cover the administrative costs of the service.

There will be an addition of nearly $550,000 to overall graduate student support through allocating 75% of graduate student tuition revenue (excluding self-funded programs) back to graduate student support. Total graduate student support now am ounts to over $11 million.

Base budget allocations to support units for 1999-2000 are shown in Table 4. The allocations reflect differential decisions involving investment in areas of priority.

• Funding for the Educational Development Office (Table 4, line 3) includes an allocation of $20,000 in support of the Scholar's Elective program.
• The Effective Writing Program has seen significant increases in student demand. The additional allocation of $25,000 (Table 4, line 4) will enable the program to continue to meet this demand.
• The base budget for Information Technology Services (ITS) is shown in line 5 of Table 4 and reflects the following: (i) the allocation of $100,000 in base budget to support the increased activities associated with the Instructional Technology R esource Centre and Classroom Technology Support, (ii) the transfer of $1.3 million to the Office of Institutional Planning and Budgeting, which reflects the transfer of responsibilities for PeopleSoft implementation and support, and (iii) the transfer of $600,000 to the University Systems Replacement Fund (Table 5, line 17) which will be used to fund future purchases/upgrades of PeopleSoft-related hardware/software.
• The base budget for Institutional Planning and Budgeting (IPB), shown in line 8 of Table 4, reflects the transfer of $1.3 million from ITS, and is associated with responsibilities for PeopleSoft implementation and support.

• The base budget for the Registrar's Office (Table 4, line 7) includes an allocation of $20,000 to cover the costs of advertising for distance studies courses.
• The base budget for Human Resources (Table 4, line 12) includes an allocation of $125,000 to fund costs associated with a new Senior Director of Human Resources.

Several components of the University's operating expenditures fall under the category of Corporate Expenditures, as shown in Table 5.

• Corporate Contingency is being set at $717,000 ­ which is 0.25% of Operating Revenues.
• In recognition of the University's commitment in support of a resource vital to research and scholarship in all areas, the Library Acquisitions budget is being increased by 5%.
• Student Recruitment continues to be a top priority for the University, and $350,000 is being allocated for 1999-2000 to support undergraduate and graduate student recruitment initiatives.
• As recommended in Leadership in Learning, the University continues to increase its contribution to the Capital Budget in support of Deferred Maintenance. For 1999-2000, this contribution increases by another $750,000 ­ to an annual total of $3. 5 million. The University's ancillary units also provide additional support to deferred maintenance projects, as shown in line 11 of Table 5. Overall expenditure on deferred maintenance in 1999-2000, which includes funds from sources other than the Univer sity's Operating Budget, is detailed in Table 15 of the Capital Budget and amounts to a total of $5.3 million.

• As indicated earlier, the University Systems Replacement Fund is being increased by the transfer of $600,000 from the ITS base budget and will be used to purchase hardware/software platforms associated with the PeopleSoft systems.

One-time allocations for 1999-2000 are shown in Table 6 and amount to a total of over $9.8 million. These allocations include targetted funding for specific initiatives critical to the functioning of the University.

• The commitment to invest operating budget funds to improve and expand facilities in the Medical Sciences Building and the Dental Sciences Building will result in the transfer of funds to the capital budget.
• Tuition revenue from students in the National Dental Examination Board's qualifying program flows through to the Faculty of Medicine and Dentistry and, for 1999-2000, is estimated at $600,000.
• Tuition revenue from International Post-Graduate Trainees flows through to the Faculty of Medicine and Dentistry and, for 1999-2000, is estimated at $939,000.
• Again in 1999-2000, it is recommended that funds be allocated, through the Vice-President (Research), to support the commercialization of intellectual property. These funds will finance the costs of legal protection of intellectual property by means o f patent and copyright, and support some of the requirements for early-stage commercialization activities such as proof-of-principle, market evaluation, and prototype development.
• Also in the area of research, the University will continue to compete aggressively for funds from the Canada Foundation for Innovation (CFI) initiative. As indicated earlier, an additional $2.5 million (from investment income) is being earmarked as ma tching funds for the CFI program.
• The need for professional development opportunities for staff continues to be a priority, and funding is recommended to support training programs for individual staff members and supervisory training for managerial personnel. The University is cogniza nt that a new work environment will require flexible and creative approaches to issues affecting support staff in all areas.
• Funding is included to support Western's 125^th Anniversary Fundraising Campaign. The initial phase of the campaign which consisted of a comprehensive needs assessment in all Faculties is complete and the final campaign proposals will be bro ught forward to Senate and the Board of Governors in the spring of 1999. The funding shown in Table 6 derives from an administrative fee on endowments and donations (shown as fundraising revenue in Table 1, line 26) and not from general University operati ng revenues.
• The University Library System is being provided with one-time funds to (a) purchase compact shelving which will allow for increased and efficient storage of books, and (b) to install self-checkout terminals at the Weldon Library, which will facilitate extended hours of operation of the Library.
• One-time funding is being provided for the purchasing of web-based Animal Protocol Management Software.
• The first contract negotiations, currently underway, with the Faculty Association and the Staff Association have resulted in increased workload and costs within the Human Resources Division. One-time funds are being allocated in support of the increas ed workload.
• The University is in the process of carrying out a detailed assessment of Y2K issues across campus, and funding is being allocated to the Physical Plant Department in support of these activities. Current estimates suggest that a minimum of $175,000 wi ll be necessary in the current year. As further details emerge, it is possible that additional funding may be required.
• The conversion of the University's corporate databases to PeopleSoft Systems continues at a rapid pace and is reaching its final stages. The Human Resources system was converted in January of 1998. During the fall of 1998, both the Finance system and the admissions and graduate studies components of the Student Records system were converted. During the summer of 1999, the Advancement system and the student registration component of the Student Records system will be converted. The conversion process w ill continue to require significant additional temporary staff resources, both to participate directly in the implementation process and to take on backfill roles within the units.

Table 7 provides a summary of the University's Operating Budget for 1999-2000. Line 7 shows the provision of an additional $4 million in support of anticipated cost increases. This amount is the net result of provision for employee salary incre ases, employee benefit cost variations, and increases in physical plant utilities.

The net position for 1999-2000 is shown in line 14 ­ a surplus of $1.1 million. This surplus partially offsets the projected $2.9 million deficit in 1998-99, which is the result of increased expenditures in 1998-99. The result is that the Operating Res erve, summarized in Table 8, is maintained at the Board-mandated level.

Another important item to note in Table 7 is that net carryforward is projected to be zero in 1999-2000, which is the result of the cumulative impact of budget reductions on Western's Faculties and support units.

Returning to the theme introduced at the outset of this document, the details of the budget proposals for 1999-2000 make clear the urgency of increasing public funding in Ontario's universities to a level comparable to that provided in other pr ovinces. The tables presented here illustrate that the increases in tuition revenues are insufficient to cover the unavoidable additional expenses incurred by the University. These costs include inflation in non-salary budgets, essential increased contrib utions to deferred maintenance and the expansion and improvement of our teaching facilities, allocations in anticipation of increased staff and faculty salary and benefit costs, and the accommodation of costs previously covered from institutional carry fo rward. Quality assurance and access to Ontario's universities requires increased government funding.

The importance of such increased funding is underscored by the anticipation of the increased demand associated with the double cohort of university-age students anticipated in the years 2003-2005, and by the 18% increase in university-age group anticip ated due to demographic changes foreseen in the next 10-15 years. Western can no longer be party to a process of underfunded expansion to accommodate these students. A recent document prepared for the Ontario government by Western's President and the Prin cipals of the affiliated colleges stressed that the University cannot consider expansion to accommodate more students without a commitment to both the full costs of educating additional students and the restoration of funding for our current students to a level adequate to assure the quality of our programs of education and scholarship. These issues will dominate academic and budgetary planning at the University of Western Ontario in the coming months and years.

Although the anticipated increase in demand for university education in Ontario poses real challenges for Western, it also brings with it a renewed attention to the university sector and its impact on the province's future social and economic health. T here is a growing recognition in the public mind of the importance and quality of Ontario's universities to individual students and to society at large. Western is committed to reinforcing this point of view and to ensuring that it is translated into a pu blic reinvestment in post-secondary education.


Operating Budget Tables

• Table 1: 1999-2000 Operating Revenues
• Table 2: Base Budgets for Faculties
• Table 3: Scholarships and Bursaries
• Table 4: Base Budgets for Support Areas
• Table 5: Corporate Expenditures and Employee Benefits
• Table 6: One-Time Allocations
• Table 7: Summary of Operating Budget
• Table 8: Operating Reserve
• Table 9: Final 1998-99 Enrolment Contingent Fund (ECF) Allocations
• Table 10a: 1999-2000 Tuition Fees for Canadian Students
• Table 10b: 1999-2000 Tuition Fees for International Students
• Table 11: Summary of Enrolment Forecast
• Table 12: 1999-2000 Provost's Academic Support Fund Initial Allocations
• Table 13: 1998-99 Provost's Academic Support Fund Allocations

The University of Western Ontario

In its 1998-99 tuition fee announcement, the Ontario government called upon universities to report annually on the manner in which tuition fee increases enhance the quality of education for students and provide for expansion of capacity in areas of hig h student demand. Last year's operating budget document included a section on Western's Quality Improvement Plan. This appendix provides an update on that plan, using the same categories as last year's budget document. We consider first those budgetary in vestments which enhance the quality of education, and then those which increase capacity in areas of high demand.

Financial aid is crucial to the quality of education of Western's students, particularly in a period when tuition fees have increased significantly. Increases in student aid increase accessibility to Western and reduce financial pressures which may have a negative effect on academic performance.

Last year's budget indicated that $2.7 million in additional funds would be set-aside for needs-based graduate and undergraduate student support, and that new programs would be introduced to ensure that qualified students were able to enter and continu e their studies at Western irrespective of financial circumstances.

The actual additional allocation for 1998-99 was $2.5 million. This amount is lower than the initially budgeted $2.7 million because of changes in the distribution of (a) enrolments between programs and (b) revenue from international student tuition an d Canadian student tuition. The policy of setting aside 30% of increased tuition revenue applies only to increases in Canadian student tuition revenue.

Work/Study Program. In 1998-99, the work/study program provided employment to 1350 students. The summer program was expanded to accommodate more students wishing to work on campus, some of whom were supported by a program in which their home Fac ulty provided matching funds. There was a considerable increase in demand for work/study opportunities during the fall 1998 session, reflected both in the number of students wishing to take part in the program and in faculty members who want to employ stu dents. In addition, work/study funds were used to support upper-year students in financial need who took part in a leadership training program and then were employed as mentors for new students in a program organized through the Centre for New Students. I n 1998, 114 upper-year students were employed as mentors for 576 first-year students.

Bursaries. Students in financial need sometimes face challenging personal situations that exhaust other avenues of support, including personal and family resources and loan opportunities. In such cases, financial aid counsellors allocate bursary support to students throughout the year on an as-needed basis, ensuring that they will be able to complete their programs of study. In addition in 1998-99, Special Bursaries were made available to OSAP-eligible incoming students in the three programs in which tuition fees were substantially increased: the MD, DDS, and the HBA. In accordance with the University's determination to maintain access to all programs for academically qualified students irrespective of their financial circumstances, these Specia l Bursary programs were introduced at the same time as fees were increased.

The quality of education at Western depends on student access to the courses they need to pursue their academic interests and complete their formal academic programs. All ECF funds are transferred directly to the Faculties in recognition and su pport of initiatives that include a first-year course guarantee, increased undergraduate course offerings, program expansion, inter-Faculty teaching collaboration, and additional full- and part-time faculty appointments.

Last year's budget proposed an additional allocation of $650,000 to the ECF in 1998-99, to fund annual shifts in teaching activity across campus, projected increases in total enrolment, and an increased ECF value from $1,000/WTU to $1,250/WTU.

The actual year-to-year increase in ECF funding in 1998-99 was nearly $1.3 million, double the amount projected in last year's budget ­ due to higher-than-projected undergraduate and graduate enrolments.

New faculty appointments are crucial to the quality of education at any university. The additional SFRI allocation for 1998-99 amounted to $600,000 to fund eight new faculty appointments, most in support of the University's proposals in pursuit of funding from the Canada Foundation for Innovation (CFI) and the Ontario Research and Development Challenge Fund (ORDCF).

Two of the eight appointments (one of which was CFI-related) have already been made, and recruitment for the others is in progress.

Effective writing is critical to the quality of education at Western and to the success of our students both in their classes and after they graduate. Last year's budget indicated that the Faculty of Arts had developed an innovative certificate program of credit courses in Writing and that the program, would be introduced in the fall of 1998, at a cost of about $200,000.

The Writing Program was indeed introduced in the fall of 1998 with seven courses offered in the form of 38 half course sections. The Program was funded on a per-course basis as a special component of the ECF; the total allocation to the Writing Program in 1998-99 was $188,300.

Special investments will increase the quality of education in programs in the Faculty of Engineering Science. Consistent with the recommendations of the University's Strategic Plan calling for investment to strengthen the Faculty of Engineering Science, base funding of $140,000 was allocated to the Faculty to support the appointment of a Chair of Electrical and Computer Engineering and for additional technical support staff in the Faculty.

Following a national search, Dr. Rajni Patel has been appointed Chair of Electrical and Computer Engineering. The Faculty has also increased the level of technical staffing required to support the expanding programs within the Faculty.

An outstanding library is a central part of the quality of education which Western student's have every right to expect. In 1998-99, a total of $390,000 in base funds were added to the Library Acquisitions Budget.

As indicated in last year's budget, even with this additional funding, the acquisitions budget will fail to keep pace with the substantial upward spiral of costs in this area. New library acquisitions are essential to undergraduate and graduate educati on and the University will continue to place high priority on the acquisitions budget.

Budget cuts to Faculties and support units inevitably reduce the quality of education at Western. The availability of increased tuition revenue in 1998-99 allowed the University to minimize budget reductions to all Faculties and support units - - reductions that would have resulted in further reductions in employment and inevitably reduce the quality of the education we offer our students.

By minimizing budget reductions in 1998-99, Western was able to accomplish the following:

• 37 new faculty appointments in 1998.
• Over 50 additional undergraduate course sections relative to 1997-98.
• Continued expansion in programs of high-demand such as the BHSc, MIT, and Engineering.
• Maintenance of the first-year course guarantee initiative.
• Introduction of an innovative program in writing.
• Successful participation in the CFI/ORDCF programs, attracting over $20 million in external research support.
• Minimization of reductions in library acquisitions and maintenance of library hours of operation.
• Continued high priority to and investment in student recruitment; applications to Western for fall 1999 increased by over 20%.
• Increased support for classroom and instructional technology.
• Maintenance of the levels of all support services.

Nothing is more central to the quality of education at a university than the recruitment and retention of outstanding faculty.

Last year's budget indicated that budget reductions in recent years have resulted in a decline in the number of tenured and probationary faculty and underscored the urgent need for faculty renewal. Additional tuition revenue in 1998-99 supported modest but vital plans for appointments in many Faculties that otherwise would have been faced with further reductions in faculty complement. Sustaining a basic level of faculty appointments is the single most important requirement for the maintenance and enhan cement of the quality of Western's educational programs. As shown in Figure 6, Western's tenured and probationary faculty complement declined substantially between 1992-93 and 1997-98. Additional appointments in 1998-99 halted this unsustainable declining trend. During 1998-99, Western appointed 37 new tenure-track faculty, while 29 faculty either retired or resigned, for a net increase of 8.

Special investments in Medicine and Dentistry, funded with increased tuition fee revenues, will increase quality in both programs.

It was noted in last year's budget that priority would be given to invest some of the additional revenue stemming from higher tuition fees in Medicine and Dentistry to ensure that students received the highest possible quality education and that our pr ograms continue to attract the best students. Details of the reinvestment proposals were promised in the 1999-2000 budget.

The School of Dentistry has put forward a plan that includes modest expansion in enrolment, expansion and improvement of facilities, and additional revenue generation initiatives. As part of this plan, the University has committed substantial reinvestm ent funds, both for operating and capital purposes. Similarly, the programs in Medicine are currently in the process of identifying educational priorities which the University is committed to funding through reinvestment of tuition revenue. Details of the University's reinvestment recommendations for Medicine and Dentistry are provided earlier in section E of the main document.

Research excellence forms part of the framework for quality in the undergraduate experience and is at the heart of quality education for graduate students. In the 1998-99 budget, Western committed to the pursuit of CFI and ORDCF funding by allo cating base budget funds for faculty appointments (i.e. the SFRI initiative) and by allocating $2.5 million in one-time "matching" funds as leverage for private partnerships.

This annual allocation is the first of four similar investments that are crucial to the success of Western's applications to these programs, essential to the creation and renewal of infrastructure necessary for graduate education and research.

To-date, one SFRI appointment in support of the CFI and the ORDCF has been made. Recruitment for the remaining positions is currently underway. Through the use of the one-time matching funds, Western was able to attract over $20 million in external res earch support in the first round of the CFI competition.

Interacting among outstanding students is a major source of high quality of education at Western. Recruitment was identified as a continuing priority in the 1998-99 Quality Improvement Plan and $355,000 was allocated in support of undergraduate and graduate student recruitment initiatives.

The University's recruitment efforts in 1998-99 proved to be very successful, as demonstrated by the significant increase in undergraduate applications for fall 1999 admission.

Graduate enrolments continue to be a priority for Western and graduate enrolments increased substantially in 1998-99.

Service to our students, and efficient, low cost administration of the University, depends in part on effective information technology and modern, easy to use databases.

In last year's budget, $2.2 million was allocated to continue the conversion of the University's corporate databases to PeopleSoft systems -- funding to support additional temporary staff who would either be directly involved in the implementation of t he systems or take on backfill roles within the support units involved in the implementation. The successful implementation of these systems before the year 2000 is critical to the functioning of the University.

During 1998-99, the Finance System and the admissions and graduate student components of the Student Records System have been implemented successfully, which is the direct result of the commitment and dedication of the staff involved in all aspects of the implementation. It should be noted, however, that the implementation and the resulting systems have not been perfect and have caused disruption in many areas of the campus. Over the coming year, the Advancement System and the final components of the S tudent Records Systems will be implemented and improvements will be made to all of the previously implemented systems.

A significant part of quality in undergraduate education involves responding to evolving student interests and needs. Western has made significant investments in the past year to expand areas of increasing student demand.

The new program in Software Engineering at Western is in its final stages of development and approval, and will be brought forward to Senate for approval in April of 1999. Students will be admitted to the program starting in the fall of 1999, o ffered in full collaboration with the Department of Computer Science. In anticipation of the new program, first-year intake into the Faculty of Engineering Science was increased in 1998-99 to over 400 ­ nearly a 35% increase over previous years. Additiona l resources, in particular additional faculty appointments, are required to support the new program.

The Government of Ontario's Access to Opportunities Program (ATOP), introduced shortly after Western's proposal to offer the new Software Engineering program, was a timely initiative that will provide substantial funding to the new program. Final decis ions on ATOP are still not available from the Government, but all funds associated with increased enrolment in Electrical, Computer, and Software Engineering programs will flow directly to the Faculties involved in the teaching of the additional students, the majority flowing to the Faculty of Engineering Science. Formulas for the distribution of these funds have been worked out with the Faculties and involve both an allocation based on additional program enrolments and ECF allocations based on actual tea ching activity.

Enrolment in the Department of Computer Science, including programs in software engineering, is also being expanded and will require additional resources. As a first step in this expansion, full-time enrolment in Computer Science increased from 258 in 1997-98 to 328 in 1998-99 ­ a 27% increase.

The Government's ATOP initiative will provide substantial funds in support of this expansion. Similar to the expansion in the Faculty of Engineering Science, all government ATOP funds will flow directly to the Faculties involved in the teaching of the additional students, with the majority flowing to the Department of Computer Science through the Faculty of Science.

Student demand for the HBA continues to increase; many highly qualified applicants are unable to gain entrance to the two existing sections of this unique 2-year, second-entry program. Last year's budget indicated that plans for the expansion o f the HBA were nearing completion and that additional funding would be allocated to the Ivey School over the next two years as new faculty members are appointed.

As planned, the HBA will add a third section of 72 students in the fall of 1999. Additional base funding of $600,000 was provided in 1998-99 to support new faculty appointments. A further base allocation of $600,000 is being recommended for 1999-2000 t o complete the appointment of required faculty members and associated personnel and physical infrastructure support.

The MIT program, introduced in 1997-98, continues to expand to meet the increasing demands for the program. In its first-year in 1997-98, the program had a full-time enrolment of 80 students and in 1998-99, the enrolment increased to 233. If jo int-degree students are included, MIT enrolments were 105 and 264 in 1997-98 and 1998-99, respectively. A steady-state enrolment of 450 students is projected in the year 2000-01. Funding for the expansion is provided through the Enrolment Contingent Fund (ECF).

Western's submission to the ATOP initiative also included the MIT program. To-date, there has been no response from the Government regarding our request for funding. If our request is approved, the funds will flow directly to the Faculties teaching the students, through the ECF mechanism.

The BHSc program, like the MIT program, was introduced in 1997-98. Full-time enrolment has increased from 149 in 1997-98 to 382 in 1998-99. Steady-state enrolment is expected to exceed 1,000 in the year 2001-02. Demand for first-year admission to the Kinesiology program continues to be strong. The Faculty of Health Sciences is phasing-in expansion of upper-year intake to the program. Funding for the expansion has been provided through the ECF mechanism. The 1998-99 Quality Improvement Plan note d that, in future years as enrolments stabilize, ECF funds will be converted to base budget allocations. It is recommended in the 1999-2000 budget that $750,000 of ECF funds for the Faculty of Health Sciences be converted to base budget.

Appendix B

The graphs below summarize revenues, expenditures, and tuition fees by Faculty using the basic methodology developed in Looking Forward (April, 1996). The details of the methodology have been revised considerably since the 1996 version, as follo ws:

• Attribution of indirect costs (i.e. non-Faculty budgets) have been refined. In the 1996 version, indirect costs were attributed using "share of Faculty base budgets". In the current version, indirect costs are attributed using many variables, includin g enrolments, number of faculty and staff, space, number of alumni, and base budgets.
• Costing of service teaching (i.e. teaching of undergraduate students from other Faculties) has also been revised. In the 1996 version, a cost of $200 per full-course-equivalent course registrant was assigned. In the current version, the figure has bee n doubled to $400 per full-course-equivalent course registrant. This equates to $28,000 for a full course of 70 students, which we believe is a fair allocation for service teaching. If the service teaching cost is doubled again, to $800 per full-course-eq uivalent course registrant, the allocation for a full course of 70 students will be $56,000. Our analysis has used the $400 figure.

In the analysis below, revenues include tuition and the grant revenue which can be attributed to each Faculty by the Ministry of Education and Training's BIU system of grant allocation. Figure A compares expenditure less revenue, by Faculty, for 1995-96 (shown in grey pattern) with data for 1997-98 (shown in black). The Faculties shown in the graph are Arts; Science; Social Science; the subtotal of those three Faculties; Business; Medicine and Dentistry; and the total of the six remaining Facult ies: Education, Engineering, Health Sciences, Information & Media Studies, Law, and Music. Because Western does not subscribe to the BIU system of weights, we do not aspire to an equality between expenditure by Faculty and the revenues which can be at tributed by the BIU system.

Nonetheless, these figures in Figure A are important because it is sometimes asserted that universities with "professional" schools use revenues from those schools to "subsidize" the liberal arts and sciences, and that therefore grant funds should be t ransferred from those universities with significant professional schools to the other universities. This assertion has no foundation, as Figure A indicates. Using the BIU system to allocate grant revenue, in 1995-96, there was a net transfer from Arts, Sc ience, and Social Science of $22.5 million to the other Faculties; in 1997-98 that net transfer has declined to $10.8 million, because of differential changes in tuition fees and budget allocations.

Those in our province who argue that "professional" schools "subsidize" the liberal arts and sciences are simply wrong. If there is such a "subsidy", it goes from the liberal arts and sciences to the other disciplines, and while that impl icit "subsidy" has declined over the last two years at Western it is still quite large. Any suggestion that MET should tax the grant to Western on the grounds that our professional schools are subsidizing the liberal arts and sciences is entirely unaccept able.

Figure B shows tuition as a percent of cost, by Faculty, for 1997-98. The figures range from a high of 48.4% for Social Science to a low of 10.1% for Medicine. Because of differential changes in tuition fees and budget allocations, these figures have also changed since 1995-96.

The Faculty of Medicine and Dentistry has suggested that the service teaching cost allocation (i.e. the $400 per full-course-equivalent course registrant or $28,000 for a full course of 70 students) is inadequate. Even if the service teaching cost were to be doubled, to $800 per course registrant, the impact on the data in Figure B is minimal ­ with Social Science dropping to 46.8% and Medicine increasing to 10.5%.

Budget Allocation, Infrastructure Funding, and Space Provisions

ATOP-related enrolment plans for Electrical/Computer/Software Engineering programs are as follows:

• Increase undergraduate enrolment (including the year 1 component) to 704 FFTEs in 2002-03 from the ATOP baseline 1995-96 level of 273 FFTEs
• Increase Master's enrolment to 70 FFTEs in 2001-02, from the ATOP baseline level of 53 FFTEs
• Increase Ph.D. enrolment to 60 FFTEs in 2001-02, from the ATOP baseline level of 20 FFTEs

The following arrangements are being recommended for funding of ATOP-related expansion in Engineering Science. The recommendation provides adequate direct funding to Engineering Science while at the same time recognizes teaching responsibilitie s in other Faculties/Departments in support of the ATOP-related expansion in Engineering.

A significant amount of the actual teaching of existing and additional ATOP-based students in Engineering Science is done by instructors from other Faculties. A funding formula based on program enrolment alone, therefore, would not address the full range of required resource increases associated with new students. This said, it is reasonable that members of faculty in Engineering Science look for some firm commitment that their relative resources will not decline as a result of the ATOP expansion. Thus, the first component of the funding formula will allocate $3500 (or 70%) of the per-FFTE ATOP funding (of $5000) to Engineering Science directly. If our ATOP proposal is approved by Government, this allocation will add more than $700,000 to the Facul ty's base budget once the expansion reaches steady-state.

In all other cases of specially-funded program expansions (e.g. HBA), the ECF baseline has been adjusted so that specially-funded enrolment does not also qualify for ECF funding. Recognizing the relatively low level of overall funding per WTU in En gineering Science, this adjustment will not be made for ATOP-related program expansion; annual ECF allocations in Engineering Science will continue to be evaluated against the current baseline, i.e. all other enrolments being stable, each ATOP-rela ted WTU will attract another $1250 of ECF funding.

This ECF funding, when combined with the $3500 per-FFTE base funding, will result in a total per-FFTE funding of about $5500 for ATOP-related expansion in Engineering Science. (Note: On average, an undergraduate FFTE in Engineering equals 1.6 WTUs f or the Faculty of Engineering Science ­ which, in turn, equals $2000 in ECF funding). This $5500 per ATOP-related FFTE is higher than the current base budget in Engineering per undergraduate FFTE of about $5250.

Of the remaining $1500/FFTE ATOP-related government funding, $1000 will be allocated as base funding to the Department of Computer Science in recognition of its central role supporting the instruction of students in the Electrical/Computer/Software Engineering programs. The final $500 will be allocated through the ECF program to support increased instructional duties in other Faculties, especially other Departments in the Faculty of Science.

Final infrastructure allocations will depend on a number of factors, most obviously, our success at attracting matching funds from industry partners. These efforts will be coordinated through Western's 125^th Anniversary Fundraising C ampaign. Irrespective of our level of success in finding additional matching funds, we must make provisions to provide the hardware and software necessary to support the additional students. The Faculty of Engineering Science has prepared a list of necess ary equipment and a supplementary list of desirable but optional items. This list will be integrated with parallel lists from Computer Science to avoid duplication and optimize the use of funds available for these purposes.

Substantial space in Elborn College has been allocated to Engineering Science, as will be the space currently occupied by the Occupational Health and Safety Resource Centre in the Biochemical Engineering Building. The renovation of Somerville H ouse will also provide additional space for the Faculty's activities in the form of classrooms, seminar rooms, and computer laboratory facilities. Finally, Engineering Science's needs are an important component of the Integrated Research Institute, curren tly under review by the CFI.

ATOP-related enrolment plans for Computer Science programs are as follows:

• Increase undergraduate intake to 240 FFTEs in 2000-01 from the ATOP baseline 1995-96 level of 120 FFTEs
• Increase Master's enrolment to 113 FFTEs in 2000-01, from the ATOP baseline level of 48 FFTEs
• Increase Ph.D. enrolment to 52 FFTEs in 2000-01, from the ATOP baseline level of 47 FFTEs

The following arrangements are being recommended for funding of ATOP-related expansion in Computer Science and the teaching of ATOP-related expansion in Engineering. The recommendation provides adequate funding to Computer Science while at the same time recognizes teaching responsibilities in other Faculties/Departments in support of the ATOP-related expansion in Computer Science.

Most of the teaching of ATOP-based students in Computer Science will be done by faculty members in Computer Science, and the balance of teaching will be done by instructors from other Faculties/Departments. A funding formula based on program enrolm ent alone, therefore, would not address the full range of required resource increases associated with new students. Thus, the first component of the funding formula will allocate $1750 (or 50%) of the per-FFTE ATOP funding (of $3500) to Computer Science d irectly. The remaining $1750 will be distributed, through ECF, to units (including Computer Science and other departments within the Faculty of Science) teaching ATOP-based Computer Science students.

Of the $5000/FFTE government funding for ATOP-based Engineering students, $1000/FFTE will be allocated as base funding to the Department of Computer Science in recognition of its central role supporting the instruction of students in the Electrical /Computer/Software Engineering programs.

In all other cases of specially-funded program expansions (e.g. HBA), the ECF baseline has been adjusted so that specially-funded enrolment does not also qualify for ECF funding. This adjustment will not be made for ATOP-related program expansion; annual ECF allocations in Science will continue to be evaluated against the current baseline, i.e. all other enrolments in the Faculty of Science being stable, each ATOP-related WTU will attract another $1250 of ECF funding.

This ECF funding, when combined with the base funding (i.e. $1750/FFTE for ATOP-based Computer Science students and $1000/FFTE for ATOP-based Engineering students) will provide the Department of Computer Science and the Faculty of Science with adequate funds to support the expansions in Computer Science and Engineering Science.

Final infrastructure allocations will depend on a number of factors, most obviously, our success at attracting matching funds from industry partners. These efforts will be coordinated through Western's 125^th Campaign. Irrespective of our level of success in finding additional matching funds, we must make provisions to provide the hardware and software necessary to support the additional students. The Department of Computer Science has prepared a list of necessary equipment and a supp lementary list of desirable but optional items. This list will be integrated with parallel lists from Engineering Science to avoid duplication and optimize the use of funds available for these purposes.

The Department of Computer Science may require additional space to accommodate its expanded responsibilities. The renovation of Somerville House will provide space for the Department's activities in the form of classrooms, seminar rooms, and co mputer laboratory facilities.

As has been the case for the past two years, the 1999-2000 Capital Plan addresses two objectives of prime importance to the University, both of which were identified in Leadership in Learning:

• Deferred Maintenance; and
• Classroom and Research Facility Enhancement.

Discussions during the annual planning process with the Faculties identified the need for additional medium- to large-size classrooms to accommodate program expansion and ease scheduling of classes in many areas. The Ivey School's expansion of the HBA and MBA programs, continued expansion of the BHSc and MIT programs, and the Provincial Government's ATOP-based expansion in Engineering and Computer Science all require additional instructional facilities ­ both classrooms and laboratory space. The 1999-2 000 Capital Plan includes substantial allocations to address these requirements.

Many capital projects are outcomes of the annual planning process involving renovations or upgrades to research facilities. Many of these projects are integral parts of the University's proposals to the Canada Foundation for Innovation (CFI) and the On tario Research & Development Challenge Fund (ORDCF).

Capital Revenues are shown in Table 14. The major sources of funding for the Capital Budget are:

• MET's annual capital grants, which are estimated as roughly equal to 1998-99 levels. However, there are discussions at the provincial level which suggest that additional grants, in the form of the general capital allocation and/or other targetted defe rred maintenance funding, may be available in 1999-2000.
• One-time infrastructure funding from the Provincial government's ATOP program.
• The operating budget's annual contribution to deferred maintenance, which grows to $3.5 million in 1999-2000 ­ as recommended in Western's strategic plan. The ancillary units also contribute to deferred maintenance, through the University's Operating Budget.
• Additional contribution from the operating budget, in support of facilities renewal in the Dental Sciences Building and the Medical Sciences Building.
• Annual fundraising.
• Bank loans for the new stadium and the University's new telephone system.

Capital Expenditures are summarized in Table 15, and address the priority areas of deferred maintenance, instructional facilities, and research facilities.

Renovations to Middlesex College. These renovations which began in 1997-98, were necessary to consolidate the newly-created Faculty of Information and Media Studies (FIMS) and to address major deferred maintenance issues, and included an upgrade of the ventilation and air conditioning systems throughout the building, the installation of new and improved communication cables, major renovations to the second floor to accommodate FIMS, and the creation of a new classroom and a seminar ro om. Total cost of the project was $3.2 million, of which $2 million was provided by the Government's infrastructure program.

Conron Hall Upgrade. This upgrade of the Conron Hall resulted in the creation of an outstanding 200+ seat classroom. The project involved a complete overhaul of the facility, and included the installation of new seating and instructional technology equipment.

New Classrooms in Somerville House. Two new state-of-the-art classrooms with modern information technology equipment were created in Somerville House.

Renovations to the Weldon Library. The $2.5 million project helped to address the service and computerization needs of Western's largest library and to bring some relief to the shortage of storage space. The renovation to the main floor a nd basement permitted more efficient service, the installation of additional computer terminals, and other service layout improvements.

Academic Space Realignment Project. Over the past two years, the profile of Western's academic units has changed significantly. These changes, which are being guided by the University's academic priorities as articulated in Leadership in Learning, emerging academic directions, and shifting student and societal demand, include:

• The creation of the Faculty of Health Sciences, and the Faculty of Information and Media Studies, and the introduction of new programs in the two Faculties ­ both of which have been extremely successful in attracting students. Steady-state enrolment i s projected to exceed 1,000 in the BHSc program and 400 in the MIT program.
• Increased emphasis on graduate student recruitment and enrolment. Full-time graduate enrolment has increased from 2,150 in 1991-92 to 2,750 in 1998-99.
• The Provincial Government's ATOP program, calling for expansion in information technology related programs in Engineering and Computer Science. Western's participation in the ATOP program will see substantial increases in enrolment in the Faculty of E ngineering Science and the Department of Computer Science, beginning in 1999-2000.
• Planned expansion of high-demand programs in the Ivey School ­ including the HBA, MBA, and E/VMBA. In the fall of 1999, the HBA program will be expanded by an additional section (steady-state increase of 150). The MBA program will also see significant expansion.

These changes have resulted in urgent academic space requirements, including the need for additional classrooms, laboratories, and office space. In order to address these requirements, a major realignment of academic space will take place. The project, estimated at $6 million, consists of:

• The conversion of Somerville House, a central building on campus, to academic space to accommodate the University's additional classroom needs. The renovations will include the creation of one 200-seat classroom, three 80-seat classrooms, five seminar rooms, two 45-station computer labs, and over 20 faculty offices.
• Renovations in the main and upper floors of Elborn College to provide classrooms, computer labs, and faculty offices for the Faculty of Engineering Science.
• Renovations in the lower floor of Elborn College to accommodate the relocated Library Technical Services Unit as well as provide much-needed storage space. The additional storage space will meet the needs of the Library System for the next 5+ years. < /LI>
• Renovations in Talbot College to create a 240-seat classroom.

It should be noted that a significant portion of the renovations in the Academic Space Realignment Project will address deferred maintenance issues.

New Large 650+ Seat Classroom. The creation of new Faculties and the expansion of many programs has resulted in the consolidation and expansion of courses and the need for an additional very large classroom on campus. As a result, it is p roposed that a new classroom of at least 650 seats be constructed. The specific proposal and design will be developed in 1999-2000 and the actual construction will be complete by September 2000.

Dentistry Facilities Renewal and Expansion. Planned expansion of various academic activities in the Dental School combined with major deferred maintenance issues in the Dental Sciences Building call for improvement and expansion of Dental School facilities. The proposed project, to begin in 1999-2000 and be completed by the fall of 2001, involves upgrading the existing facilities and expansion of clinical space. Funding for the project, estimated at $5 million, will come from the Universi ty's operating budget, the Dental School budget, and fundraising.

General University Classroom Improvements. A review of all general university classrooms was conducted during 1998-99. Based on feedback from instructors, upgrades to approximately 60 general university classrooms are planned for 1999-200 0 and beyond ­ and will include improvements to lighting, seating, instructional technology, and painting.

Other Instructional and Research Facility Enhancement. As an outcome of the annual planning process, a number of academic capital projects are proposed for 1999-2000, including lab upgrades in Engineering and Medicine, and the creation of new research space in Chemistry.

Stadium Construction. The construction of a new $10 million stadium will begin in 1999-2000 and will be completed one year prior to the 2001 Canada Summer Games. The cost of this venture will be covered by fundraising.

Other Deferred Maintenance Projects. Several of Western's academic buildings have had major difficulties with heating and ventilation systems, resulting in inconvenience and discomfort to faculty, staff, and students. The Social Science C entre and the Weldon Library, in particular, have been affected; priority is given to work in these buildings in the 1999-2000 Capital Plan.

All unit-specific capital projects will be funded by the units themselves. Several projects within the residences will be initiated by the Division of Housing and Food Services, and Ancillary Services in 1999-2000. In addition, the Thompson Rec reation and Athletic Centre will provide funds for the design of an expanded entranceway, and Parking Services will fund repairs to parking lots. Unit-funded projects are identified in Table 20. Residence projects are listed in Table 21.

Due to limited funding, many high-priority projects have been deferred to future years. For information, a list of these projects is shown in Table 19.

The projected 1999-2000 year-end status of the Capital Reserve is shown in Table 16. The $5.2 million shown in line 15 is about $1.1 million below the Board mandated level of $6.3 million. In order for the high-priority classroom-related projec ts to be completed, it is necessary to draw down the capital reserve. If, as suggested earlier, additional government funding is made available in 1999-2000, the reserve will be restored to the required levels.

The change from a five-year to a four-year curriculum in Ontario's high schools will mean that students entering high school in September 1998 and September 1999 will have a common normal graduation date of 2003, putting unusual pressure on uni versity admissions. This pressure for admission from two cohorts of graduating high school students is known as the Double Cohort.

Western's initial statement on the Double Cohort, suggested that the University will accommodate its share of additional students as long as the government commits to full operating and capital funding. Based on preliminary simulations from the governm ent, if Western were to accommodate its share of the Double Cohort, it could mean an additional 3,700 students. Discussions between Ontario's universities and Ministry of Education and Training regarding the implications of the Double Cohort have already begun.

It is clear that the Double Cohort will have serious implications for space and facilities on campus, in the form of additional classrooms, laboratories, faculty and staff offices, residence space, library space, and information technology infrastructu re. Western's initial statement committed the University to ensure more intensive and efficient use of existing space, thereby keeping down the annual cost of building operations. Additional space through building expansion will also be required, but will only be pursued after efficient utilization of current space is achieved. The 1999-2000 Capital Plan takes the initial steps in achieving this efficiency through a series of renovations aimed at optimizing our usage of existing space.

Capital Budget Tables

• Table 14: Capital Budget Revenues
• Table 15: Capital Budget Expenditures
• Table 16: Capital Reserve
• Table 17: 1998-99 Capital Plan Projects
• Table 18: 1999-2000 Capital Plan Projects
• Table 19: Future Major Projects
• Table 20: Unit-Funded Capital Projects
• Table 21: Residence Projects