Queen’s announced new risk mitigation measures to balance the University’s budget on July 6.
The Queen’s Board of Trustees projected the University will run a $62.8 million deficit for the upcoming year. Queen’s is drawing from its reserves to cover this year’s shortfall.
“Funds from these budget reduction may also be used to support initiatives to identify efficiencies, generate revenue, or support projects key to moving the University forward in achieving its strategic goals,” the University said in a statement to The Journal.
Queen’s is imposing a hiring freeze on full-time positions which are currently vacant, and a 1.5 per cent reduction in funding allocation for all University budgets for the following two academic years. All faculties must reduce their operating deficits to five per cent of their operating budget according to a press release.
Mitigation measures will ensure the academic and research mission is not jeopardized. The University expects to balance its books for the 2025-26 school year.
READ MORE: Queen’s projects a $62.8 million deficit
Queen’s annual evaluation by external crediting agencies, Morningstar DBRS, and Standard and Poor’s, determined Queen’s remains in strong credit standing. Morningstar DBRS issued an AA rating, and Standard and Poors issued an AA+ rating.
“The student demands, effective management practices, and strong academic profile are cited as strengths of a strong balance sheet,” the University said.
The University accumulated more than $618 million surplus between 2013 and 2021, according to Queen’s University Faculty Association’s 2022 budget and financing review.
The longstanding tuition freeze, imposed by the provincial government in 2019, remains in effect. This costs the University $179.4 million in lost revenue. Inflationary costs and the decline in international student enrollment have further put a strain on the budget.
Queen’s attributed its confidence in restoring the budget to its strong academic profile. The University reported receiving over 55,000 applications for about 5,000 first-year positions.
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Budget, deficit, Finance, hiring, University
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