Queen’s Senate convened for an emergency meeting on Zoom to address questions related to the University’s operating budget deficit and its impact
on academia.
In his opening remarks, Principal Patrick Deane emphasized the significant budget challenges Ontario universities are currently facing, not just Queen’s University.
“This is a sign of a widespread problem which arises from a very extended period of underfunding in the Province of Ontario,” Deane said.
Deane cited the Government’s 2019 tuition cut and freeze, and Queen’s decline in international enrolment as the root causes of the current budget deficit. He’s hopeful Queen’s will persevere through these challenging times.
Echoing Deane’s sentiments in a presentation to Senators, Provost Matthew Evans shared the causes and effects of the $48 million budget deficit. Rising inflation coupled with employee salaries, which constitute 67 per cent of total expenditures, contributed significantly to Queen’s financial challenges. However, neither should compromise the University’s academic offerings, Evans said.
“Our priority has to be the academic mission. We have to continue to deliver the highest standard of education, maintain a robust research program and excellent teaching,” Evans said.
Queen’s decentralized budget model implemented in 2013 grants faculties autonomy over spending and income. For the 2024–25 fiscal year, structural deficits are evident across all faculties, with 80 per cent attributed to the Faculty of Arts and Science (FAS). The goal is for faculties to balance their budgets by 2025-26, Evans said.
The FAS has a larger deficit than other faculties because it lagged behind in meeting its target for international student recruitment this year, shy 79 students of the original projected numbers. Faculty retirements were also lower than predicted.
In his presentation, Evans said Queen’s is falling short on its international recruitment by 152 students. The lower enrolment of undergraduate international students for the 2023–24 school year cost the University $12.1 million. Smith Engineering has experienced a shortfall in the enrolment of undergraduate international students, with 81 fewer students than anticipated. This decrease in international undergraduate enrolment cost the faculty $3.2 million, projecting the second-highest deficit after the FAS which lost out on $9.6 million from the demographic.
While the target for overall undergraduate enrolment has been met by most faculties, the Smith School of Business faced challenges in reaching the goal of recruiting 500 students, the faculty fell short of 18 students.
“International students are worth a considerable amount of money to the faculties,” Evans said.
International students are important for Queen’s longevity and campus culture. Evans said strong international enrolment enriches university life
and campus diversity, while ing the institution’s financial stability.
To alleviate financial pressures on faculties, a deficit mitigation fund was established at the beginning of the year. This fund requires a 1.5 per cent
contribution to be made by all units, including shared services, and faculties.
When asked how the University plans to uphold its academic mission, Evans directed the focus to the deficit mitigation fund. According to Evans’
presentation, $9.8 million in the 2024-25 fiscal will be used as a “safety net” for the FAS.
“That’s a considerable investment by us and reflects our values and the help that we have for the faculty is very important and a key part of the university and we’ll do our best to sustain it,” Evans said.
The two major external pressures that aren’t reflected in the budget are the decline in enrolment this year, and the closure of Bader College due to the state of the castle, which will have repercussions in the years.
“Unfortunately, it’s fairly obvious that both of those are likely to be negative,” Evans said.
In response to the financial challenges, Principal Patrick Deane and Provost Matthew Evans have established a bi-weekly task force. This group oversees actions taken to mitigate budget cuts and facilitates regular discussions to understand the evolving situation.
“The task force will manage risk to ensure Queen’s is financially sustainable and resourced appropriately to the academic mission, and to minimize the impact on students,” Evans said
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