Basics of UBC’s Budget

At a high level, UBC’s budget is composed of two parts: the Operating Fund, and Non-Operating Funds.

Operating Fund

The Operating Fund covers the core academic operations of the university, investments in new programs and services, and resources required to maintain current operations. It includes all “unrestricted” funding for UBC—resources that do not have a specific use case determined—primarily government grants, student tuition, and sales and services revenue. These revenues are the primary source of funding for academic programming, university services, ancillary operations, and strategic initiatives undertaken by the university.  

Non-Operating Funds

Non-operating funds are “restricted” and can only be used towards specific initiatives, such as research, capital projects, and endowment-related activities.  

Together these comprise UBC’s Consolidated Budget:

What makes up the Operating Budget?

UBC’s Operating Revenues 

The operating budget is made up of revenues and expenses to support core academic operations. The primary major sources of revenue for UBC are: 

• Government grants
  UBC receives funding from the provincial and federal governments for research, domestic undergraduate courses, and some graduate-level teaching.
• Student tuition
  Fees are collected from domestic and international students.
• Sales and services
  Revenue is collected from lease income and fee-for-service activities across both campuses. Ancillary services, including student housing and food services, are expected to be financially self-sustaining.  

UBC’s Operating Expenses

A significant portion of the university’s expenses arise from employing faculty and staff and resourcing day-to-day operations. Many Faculties also receive funding directly from non-core activities outside of the operating budget. These funds are managed directly by Faculties to support their operations. The primary expense categories for UBC are: 

• Salaries and benefits
  Faculty and staff are committed to teaching and providing support to students, as well as overseeing the general operations of the university. 
• Operational supplies and sundries
  These expenses support the ongoing maintenance of university services. 
• Scholarships, fellowships, and bursaries
  UBC offers financial aid for domestic and international students.
• Utilities, travel, and costs of goods sold
  This category supports UBC’s general operations.  
• Professional fees and grants to agencies
  These expenses include contractors and consultants delivering targeted work for UBC. 
• Minor capital and debt costs
  These expenses include costs related to small capital projects and interest on long-term debt.

Where students’ tuition goes

Tuition fees support UBC Faculties, central administration, and student financial aid. In addition, a portion of tuition from international students goes towards the Academic Excellence Funds (AEF) on the Vancouver campus, and the Excellence Fund (EF) on the Okanagan campus. 

• Faculty and central administration
  UBC uses a decentralized budget model, which means that faculties and administrative units are responsible for balancing budgets within their specific areas.   
• Student financial aid
  A set portion of all tuition goes back to students as financial aid in the form of bursaries, scholarships, and awards. 
• Excellence Funds (AEF and EF)
  These funds support strategic investments to attract the best faculty and students, support world-changing research, and deliver an exceptional learning experience. Some of these resources are re-invested towards student financial aid through strategic initiatives. 
• Other
  A small portion of tuition is allocated to cover financial transaction fees and potential bad debts. 

Approximate tuition allocation from 2024/25 is as follows: 

Budget considerations

While the impacts of government policy changes, growing geopolitical uncertainties, and heightened competition in the sector are not yet fully clear, the budget conservatively projects a modest decrease in international student enrolment for 2025/26. UBC is actively mitigating this risk through a variety of strategies, including enhanced recruitment efforts and the optimization of student yield. 

At the same time, broader economic uncertainties continue to shape UBC’s financial outlook. Factors such as rising operational costs, foreign policy impacts, and trade uncertainties pose challenges that will continue to evolve. In response, there has been a concerted effort across both campuses to reassess our operations, programs, and offerings to optimize our resources and reduce our expenses.  

The 2025/26 budget was prudently developed to acknowledge factors like these. Despite the challenging environment, UBC remains in a healthy financial position, committed to investing in and advancing the university’s academic mission and continuing to innovate as a global leader in post-secondary education.

Full information relating to the considerations made by the university during the development of the budget, as well as the financial plan for 2025/26, is available in the annual budget report.