Wednesday, November 27, 2024  |  Category: Blog

Deficits and Layoffs

Scrooge is coming early for CdnPSE, and instead of tracking Santa, I’m stuck tracking deficits and layoffs. Campus leaders are aghast at the visions of future doom lying before them…

Changes to IRCC’s student visa allocations and PGWP eligibility have Canadian colleges and universities in shock. Declining interest in Canada as a study destination has resulted in immediate 45-55% drops in new international enrolments, and some colleges report up to 80% of their programs are no longer eligible for the PGWP. Virtually all institutions are projecting substantial revenue declines for fiscal 2024-25, and some have already announced some preliminary numbers – either of projected deficits, or of budget cuts necessary to avert those deficits. Here is my running CdnPSE Deficit Tracker:

(Read more about deficit announcements on Eduvation Circles, in “Shock and Withdrawal.”)

Another way to visualize the deficits is as a percentage of total operating budget:

How can institutions cope?

For years I have offered strategy workshops to boards and senior administrators on the need to adapt to times of austerity, and some innovative tactics and approaches. (See my topic, “Staying the Course despite the Headwinds.”)

I have also summarized some of the tactics being announced this Fall in CdnPSE, on Eduvation Circles in “Battening Down the Hatches.”)

Of course, most institutions will need to reduce staff and faculty headcounts in order to address budget shortfalls. Some have already announced approximate numbers of positions that will be eliminated, whether through attrition, early retirement, or layoffs:

Again, considering the layoffs in relation to the scale of international enrolment helps us detect patterns, and even predict implications for other institutions:

(Read more about layoff announcements on Eduvation Circles, in “Heads Will Roll.”)

Post Tags: #budgets