University of Windsor facing $30M shortfall next year, warns of layoffs and freezes

The University of Windsor is facing a multi-million dollar budget shortfall over the next two years and in a sober town hall presentation to staff on Wednesday, administrators warned "no one is coming to save universities."

The shortfall for the 2024-25 academic year is expected to be about $10 million, followed by a projected $30-million deficit in the 2025-26 year.

Joined by other members of the university's executive team, President Robert Gordon said domestic tuition freezes, capped international student enrolment and escalating costs all contributed to the shortfalls, categorizing the issues as beyond the university's control.

"As an institution, we must face the reality that the status quo cannot be maintained and we need to figure out together how to do less with less," Gordon said. "We are entering a new era of reimagining the University of Windsor, where tough decisions lie ahead."

Gordon noted geopolitical tensions as a factor in international student enrolment, saying it will be down about 25 per cent in 2024-25 and contributing to the projected $10-million deficit.

And while international student enrolment is declining, Gordon also noted the university has a limited ability to enrol more domestic students because of funding caps from the provincial government that would not award them more provincial funding for having more domestic students.

"Direct government funding is the only other major revenue source for our operating budget. Yet our base government grant has changed very little over the past decade," Gordon said. "[We] are receiving less government grant support now than we did back in 2017. It falls well short of meeting the growth needs of our institution.

"Unfortunately, there's no indication that things will substantially change anytime in the near future."

And, Gordon noted, these estimates are preliminary and "assume that university receives the requested number of international study permits." Given that, the deficit could be larger, he noted.

Gordon said that almost 80 per cent of the university's operating costs are devoted to people-related expenses including salaries and benefits, and many collective agreements are up for renewal in 2025.

"Yes, we can expect layoffs. They're going to be immediate, they're going to be ongoing and they're going to affect every category of employees at the university," said Clinton Beckford, vice-president of people, equity and inclusion, when asked during a question-and-answer portion of the town hall meeting.

Beckford said the university is in the midst of a hiring freeze "at every level" and there will be salary freezes for administration and non-union employees.

"We can expect that this is going to continue. I'll be honest with you, this is the stuff that keeps me up at night," he said.

The university had previously announced program cuts to help mitigate what at the time was a $5.6-million deficit. Over the summer, they announced the closure of the University Players, the theatre arm of the School for Dramatic Arts, as well as the closure of the EPI Centre, an entrepreneurship hub.

Earlier this fall, CBC reported the closure of a University of Windsor lab that worked to develop alternatives to some kinds of animal testing.

When asked about other measures to reduce the deficit, including selling off university buildings, the university's vice-president of financenoted that that kind of one-time funding doesn't address the operational needs of the university.

But, Gillian Heisz said, they are working to establish more partnershipsand leases that can bring in money.

The university is also unable to tap into its reserve funds to manage the deficit because that money is earmarked for one-time expenses.

Gordon said that throughout the university's budget challenges, they must continue to focus on students

"There are no signals that we can count on government, or anyone else for that matter, to assist us in balancing our operating budget.

"I want to emphasize that our budget situation does not define us ...What truly defines us is the care and dedication that each of you bring to our campus every single day, especially when it comes to our students."