Budget FAQs
Updated April 8, 2025
Q. What’s an operating budget?
UVic is responsible for the financial stewardship of over $900 million in total annual revenues. To enhance accountability, budgetary control and oversight of externally restricted resources such as research grants, UVic maintains separate funds for its diverse activities.
The general operating budget includes the general operations for the university—everything from salaries and benefits, to scholarships and bursaries, to keeping the lights on. It is composed of two parts: general operating revenue and general operating expenditures. Total operating revenue is projected to be $535 million in 2025/26.
Other funds separate from the operating budget include:
- ancillary enterprises fund – the operation of service areas that are considered self-funded operations (e.g., student residences, food services, parking services, child care services, university bookstore and computer store, and off-campus properties);
- specific purpose fund – contract services, special projects, and distributions from the university’s endowment funds;
- sponsored research fund – external grants provided specifically for research; and
- capital fund – accounts for funds provided for the acquisition of capital assets and to conduct major renovations.
Revenues
Q. How are UVic's operations funded?
Operating costs for the university are funded from two main sources: government grants, which accounts for 56% of operating revenues, and student fees (tuition), which accounts for 32%. Department revenue, other grants and contracts, federal grants and investments make up the remaining percentage of revenue.
Source: Planning and Budget Framework 2025/26
Q. Has UVic's operating grant changed over time?
Over the last 5 years, UVic's operating grant has increased 35%, mainly the result of funding for general wage increases and targeted funding for Ministry-approved academic program expansions in key growth areas. This funding has resulted in the operating grant revenue increasing to 56% from 50% of operating revenue.
Expenditures
Q. How much of UVic’s operating budget goes towards salaries and benefits?
Annually, approximately 80% of UVic's operating budget goes toward salaries and benefits. The remaining 20% goes to operating expenses.
Q. How much of UVic’s operating budget goes towards academics, administration, etc.?
Reflecting the mission of the university, 79% of the total operating budget is allocated to academic areas including faculties, research, library, student financial aid, and student services, with the remaining 21% allocated to maintain and operate facilities and for support functions.
Expenses by function have remained consistent over time. The chart below shows that UVic’s investment in academic areas over the past five years is comparable to peer Canadian post-secondary institutions.
Enrolment
Q. What does enrolment have to do with UVic’s operating budget?
Approximately 90% of UVic’s operating budget is directly connected to enrolment, through the provincial operating grant and tuition revenues.
Tuition from international students makes up approximately 31% of total tuition revenue, whereas international student enrolment comprises 11% of full-time equivalent (FTE) students.
International undergraduate students pay more in tuition than domestic students because their education is not funded by the provincial government. The provincial grant is based on UVic’s domestic and graduate enrolments.
Any enrolment shortfall has a longer-term impact than just the initial year in which it happens. A decline in new student intake impacts the next four to five years—the time we expect a student to complete their program here at UVic.
Q. How are enrolment targets set?
The BC Ministry of Post-Secondary Education and Future Skills (PSFS) sets domestic enrolment targets for UVic based on annualized FTEs, and UVic’s Board of Governors approves all enrolment levels to help meet those targets.
UVic’s operating grant, like other post-secondary institutions in BC, is provided by PSFS based on our domestic undergraduate and graduate enrolment targets. This represents our “PSFS-funded target.” We submit a Board-approved to PSFS every summer that demonstrates whether we have met those domestic and graduate targets. UVic consistently meets or exceeds our PSFS targets, and we expect to do so again in 2025/26.
Internally, UVic sets a higher internal target for enrolments for the purpose of its own academic and budget planning, which takes into account international undergraduate students (who are not grant funded by government and thus pay more in tuition), along with domestic and graduate students.
UVic is funded to enrol:
| Student FTEs | |
| Undergraduate domestic students | 14,508 |
| Graduate students | 2,438 |
| Total funded | 16,946 |
Q. If we enroll more domestic students, do we get more funding from the provincial government?
No. Government funds up to our domestic-enrolment target, which they set. Any additional students we enroll provide only tuition revenue, which is insufficient to cover the full cost of their education.
UVic works with the BC Government on targeted expansions of specific programs of interest. These expansions increase our enrolment targets and provincial grant amounts. UVic recently received grant funded increases for select technology and health programs.
2025/26 PSFS-funded expansions:
| Student FTEs | |
| Bachelor Software Engineering | 60 |
| Bachelor Computer Science | 75 |
| Bachelor Health Information Science | 10 |
| Master Health Information Science | 15 |
| Nurse Practitioner | 15 |
| Total funded expansions | 175 |
Accountability
Q. Why can't UVic reallocate funding for capital projects?
It takes years to plan for major capital projects. The university has a legal obligation to spend funds on their intended purpose, as stipulated by the source of the mainly external funds. For example, the federal and provincial governments granted UVic funds to construct the National Centre for Indigenous Laws—legally, we are not permitted to spend those funds on another project or put those funds towards our operations (including salaries, supports, services, etc.). This also applies to any routine capital funding from the province to address deferred maintenance of our buildings.
Facilities planning is an ongoing process, and capital expenditures are critical in order to address changes in student demand and support services, as well as evolving research and teaching requirements. The capital projects currently underway are essential to the long-term success of our academic mission and our strategic enrolment goals.
Q. Who is responsible for budget decision-making at UVic?
Aligned with BC’s , UVic’s Executive Council and Board of Governors are responsible for institutional decision-making related to budget, in consultation with other senior leaders, including Deans and Associate Vice-Presidents. Executive Council includes the President, five Vice-Presidents and the University Secretary.
Deans and other university leaders are responsible for decision making within their faculties and units, based on institutional direction. Leaders will have some flexibility, resources and supports to manage any reductions within their portfolios.