Thompson Rivers University (TRU) is grappling with a financial shortfall of over $20 million as it seeks to balance its budget for the upcoming fiscal year. This comes on the heels of a significant decline in international student enrolment, compounded by changes to Canada’s immigration policies that have led to a reduction in the number of international student permits issued. With enrolment numbers expected to continue falling, the university faces a challenging road ahead, forcing it to implement sweeping budget cuts and adjust its operations.
International Enrolment Decline
TRU’s international student enrolment has seen a notable drop, with 400 fewer international students enrolled this fall compared to the previous year. This decline is part of a larger trend affecting Canadian universities, as the federal government announced last January that the number of international student permits would be reduced and capped for the next two years. The reduction in enrolment is expected to continue, putting pressure on the university’s revenue from international tuition fees.
International students have long been a significant source of funding for Canadian universities, with higher tuition rates compared to domestic students. The decline in enrolment has left TRU facing a substantial budget gap, necessitating drastic cuts in spending and a rethinking of its financial strategy.
Budget Cuts and Cost-Saving Measures
To balance next year’s budget, TRU has outlined a series of measures that include a 7.4% reduction in overall spending, equivalent to approximately $20 million. The university’s board of governors presented the budget cuts in a report last week, detailing the specific areas where reductions will be made.
One of the largest areas of savings will come from eliminating 70 to 75 vacant positions across the university, which is expected to save between $7 million and $10 million. Additionally, a 1% reduction in non-salary expenses will contribute $2.7 million to the savings target. Further reductions will be achieved through a combination of “metric-based and other targeted non-compensation reductions,” which are projected to save an additional $6 million to $10 million.
As enrolment continues to fall, TRU also expects to find savings through cuts to sessional and university instructor teaching loads, with an estimated savings of $2 million to $5 million. Moreover, agent commissions for recruiting international students are expected to decrease by at least $1.5 million due to the lower enrolment numbers.
The university has also identified smaller savings from operational changes. The closure of the Westgate residence after the winter semester is expected to save around $700,000, while the introduction of credit card convenience fees earlier this year will contribute approximately $800,000.
In an effort to avoid layoffs, TRU has indicated that some existing positions may be reviewed for potential elimination. However, the university has ruled out offering an early retirement incentive plan at this stage.
Strategic Investment in Reserves
Despite the financial strain, TRU is expecting to finish the current fiscal year with a $5 million surplus. However, the university plans to restrict $9.5 million in operating funds to build up its financial reserves in anticipation of continued financial challenges in the coming years.
Provost Gillian Balfour explained that the surplus funds are not sitting idle but are being earmarked for strategic investments. “It’s not sitting in a bank account somewhere. It’s allocated to address the need to build up a reserve, and also to make those initial investments,” she said during the board meeting. These investments are seen as crucial to ensure the university can remain financially stable and responsive to future challenges.
Among the investments planned are faculty hires for TRU’s Wildfire initiative, the development of enhanced student services, improvements to recruitment strategies, and the implementation of a new student information system. These efforts are part of the university’s broader strategy to build a responsive and sustainable recruitment system for future years.
Balfour also emphasized the importance of working with faculty deans to quickly create new programs that can attract students, particularly international students. While degree programs can take up to two years to gain approval, certificate and diploma programs can be developed in a much shorter time frame. This flexibility is seen as critical in adapting to shifting student demands.
Additionally, TRU’s open learning division is exploring ways to increase its online offerings, which have seen a significant uptick in international enrolment. The expansion of online courses could help mitigate some of the declines in on-campus enrolment, particularly among international students who may prefer remote learning options.
Financial Strategies for Future Sustainability
Matt Milovick, Vice-President of Administration and Finance at TRU, discussed the long-term strategy for ensuring the university remains financially viable in the coming years. He acknowledged that the immediate cuts and financial adjustments are only the beginning of a longer-term process of fiscal discipline. “This is the easiest part of it. It gets a lot more difficult going forward,” Milovick said.
Looking beyond the next fiscal year, TRU is anticipating an ongoing need to reduce expenditures by an average of 5% annually from 2026 to 2029. These future reductions will likely impact all areas of the university’s operations, from faculty and staff to student services and academic programs.
One of the most pressing financial concerns for TRU is the decline in international tuition fees, which make up a significant portion of the university’s revenue. Projections for the 2024-2025 academic year show a $14 million drop in international tuition and fees, from a forecasted $95 million to $81 million. This decline is expected to be accompanied by a reduction of approximately 7,000 international students, which will further exacerbate the financial challenges faced by the institution.
Meanwhile, domestic enrolment is expected to remain relatively stable, providing some level of financial consistency. However, without a rebound in international enrolment, the university will face continued pressure on its budget in the coming years.
Capital Spending Adjustments
In addition to operational cuts, TRU has made adjustments to its capital spending plans. The university has pulled back $5 million in planned capital expenditures, although some key projects will continue. Notably, TRU’s $22 million Indigenous Education Centre and $40 million Low Carbon District Energy System will proceed as planned, reflecting the university’s ongoing commitment to sustainability and Indigenous education.
However, a planned $10 million pedestrian bridge project, which was set to be shared between TRU and the City of Kamloops, has been deferred to future years. Milovick stated that while the project remains on the books, it is not considered a priority in the current budgetary climate.
Looking Ahead: A Challenging Future
As TRU navigates these challenging financial times, the university faces difficult choices in defining its future. Milovick warned that the university’s financial situation would become even more challenging in the years ahead. “It really comes down to the choices and how we define ourselves as an institution and what programs we value and need to create,” he said.
Despite the financial difficulties, TRU remains committed to maintaining the quality of its academic programs and services. The university is actively exploring ways to adapt to shifting student demographics and changing economic conditions, particularly by increasing its focus on online education and improving its recruitment strategies.
As the university works to navigate these turbulent waters, it remains focused on building a resilient and sustainable future. However, the road ahead will require continued careful planning, strategic investment, and a commitment to adapting to the changing landscape of higher education in Canada.
Conclusion
Thompson Rivers University is facing a tough financial reality as a result of declining international student enrolment and broader changes to Canada’s immigration policies. With budget cuts totaling over $20 million for the upcoming year, the university is forced to make difficult decisions in order to ensure its financial stability. While the immediate cuts are necessary to balance the budget, TRU is also focusing on long-term strategies, including investments in reserves, new programs, and online learning options. Despite the challenges, TRU is committed to remaining a leading institution in Canadian higher education and continuing to serve both domestic and international students. However, the coming years will likely see further adjustments as the university works to adapt to shifting enrolment patterns and financial pressures.
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