Queen’s University will cut costs this year as it grapples with ongoing budgetary issues.
The University is projecting a $35.7 million operating budget deficit, confirmed in the Final Operating Budget Report to the Board of Trustees on May 10. To mitigate the impact of the deficit, the University will uphold the hiring freeze initiated in May 2023 and put into action Voluntary Retirement Initiatives currently ongoing in the Faculty of Arts and Science (FAS).
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In addition to increased costs and inflation, the budget deficit was blamed on provincial tuition cuts and freeze for in-province students and decreased international and graduate student enrollment.
Faculty of Arts and Science
FAS will run out of reserve money by the end of 2024-25, requiring extra help from the Deficit Mitigation Fund this year.
The money set aside for the Deficit Mitigation Fund from each respective faculty and school is increasing from 1.5 to four percent for 2024-25, with the entirety of the fund allocated to FAS as they struggled to balance their budget this year.
A decrease in shared service allocation, extra money from a short-term investment, and a government grant will provide the University with $85 million, of which $25.2 million will go to ing FAS and Bader Collage, currently facing structural issues at Herstmonceux Castle.
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The rest of the funds will be used for capital transfers, research costs, strategic investments, and unexpected financial challenges that may arise in the future.
Decreased international and graduate student enrollment
The decrease in international student enrollment contributed to the University’s budgetary strain. The University experienced a 7.4 percent decrease in international student enrollment this year, according to Queen’s 2023-24 enrollment report.
Despite previous concerns, the recently introduced federal cap on undergraduate international enrollment doesn’t significantly impact the University’s enrollment target, the Final Operating Budget Report confirmed.
READ MORE: University ‘concerned’ about cap on international students
The University has prioritized early offers, provided housing guarantees for incoming first-year undergraduate students, and streamlined the immigration process using the service Border to meet its goal for international student issions.
In addition to international student enrollment, a decline in graduate enrollment has impacted the University’s ability to balance its budget. The University’s planned graduate student intake was 3,242 students, but 2,915 enrolled in 2023, according to the enrollment report.
The University experienced a drop in enrollment for the Master of Business programs offered by the Smith School of Business, with tuition set at $83,885 for domestic students. Higher interest payments required to pay tuition, inflation, global uncertainty, and the COVID-19 pandemic have impacted student’s ability to enroll in graduate programs.
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