McMaster introduced an activity-based Budget Model in 2014, which has been consistently reviewed and updated since its implementation. Visit the Office of the Provost’s website for overview information and for an FAQ that is specific to the Budget Model.

McMaster’s Board of Governors is responsible for approving the yearly consolidated budget. The Provost oversees the budget process to ensure the needs of McMaster’s Faculties and support units are met in alignment with the university’s strategic priorities and funding.

McMaster’s Budget Committee is responsible for reviewing the budget framework and responding to budget submissions from all areas of the university. McMaster faculty, staff, and students can join the Budget Committee by being elected to the University Planning Committee, which oversees it. Terms are two years for students and three years for faculty and staff.

McMaster’s consolidated budgets are made public each year following approval by the university’s Board of Governors in June. They are available online for anyone to review on the Financial Affairs website.

The current focus on cost savings and revenue generation is a continuation of McMaster’s long-term financial strategy. Proactive planning by so many across the university for the past few years has allowed McMaster to produce a near-balanced budget in an environment of decreasing revenues.

The use of reserve savings (appropriations) are a temporary measure and are not a sustainable solution, thus we need to focus our efforts now more than ever on identifying efficiencies and exploring new revenue opportunities to ensure our spending does not exceed our resources.

There are five main challenges.

1. Ontario has the lowest funding per student among all Canadian provinces.
2. The number of students eligible for government funding in Ontario has been capped since 2016.
3. Tuition fees were reduced by 10% in 2019 and frozen in 2020.
4. The federal government’s cap on study permits has had a negative impact on international enrolment.
5. Rising costs and inflation continue to put additional financial strain on universities.

Senior leaders at McMaster have been actively meeting with government representatives at all levels to advocate for sustainable institutions and for our students. This includes meetings in Ottawa and at Queen’s Park, direct discussions with policy makers and participating in advocacy efforts with other post-secondary institutions. This work is ongoing and supported by Public Affairs staff at McMaster and through participation in sector associations.

We heard ideas from many of you on how to cut costs or increase revenues, many of which will be explored. While solutions will vary from one unit to another, each contributes to the overall goal of ensuring that McMaster is able to deliver on its core academic and research priorities and does not fall into a deficit position. Actions may include:

• Staff attrition
• Delayed hiring/salary gapping
• Streamlining software licences
• Improved procurement processes
• Reduced travel or project funding
• Identifying new sources of revenue

All savings count and we encourage you to bring ideas to your supervisor to explore.

Salary gapping in this context means deliberately leaving some roles unfilled for a period of time after someone leaves. This results in short-term cost savings, as funds budgeted for salaries remain unused during the gap period.

Faculty and staff at McMaster are known for their dedication to students and to the university’s mission and we appreciate all your efforts to continue making our university one of the best in the world. If workload concerns arise, however, please have open discussions with your department leaders to explore efficiencies, prioritize critical activities and identify supports through available resources. Your well-being is critical, and university leaders are committed to mitigating workload challenges as much as possible.

We will continue to reach out to the community with updates and we encourage all senior leaders to be transparent with faculty and staff in regard to financial management. We understand some in the McMaster community may continue to have questions about the future of higher education in Ontario and we will do our best to be as open and transparent as possible during this time.