The University is projecting over $20 million less in its operating budget deficit than originally expected this year.
Disclosed in an information report to the March 6 Board of Trustees (BOT) meeting by Vice-Principal (Financial and Administration) Donna Janeac, the Operating Fund deficit is expected to be about $2 million, a drop from the $26.4 million deficit that had been budgeted in May, and a further drop from the $3 million projection in December.
READ MORE: Queen’s updated 2025-26 projected operating deficit falls to $3 million
According to the report, the improved financial outlook is largely due to increased provincial support and reduced spending. The University received $19.5 million more in provincial grant funding than anticipated, including $15.9 million in the form of a provincial investment for STEM programs at Queen’s as part of a broader $750 million investment.
While some of that gain was offset by lower tuition revenue, faculties and schools also reported $3.2 million less in deficits than originally forecast.
Spending cuts also contributed to the improvement. The University reduced shared services expenditures by $12.2 million, in part by delaying IT upgrades and building renovation projects as part of broader budget-balancing measures.
In addition, $9 million from Central and Transition Fund allocations remains unspent. The University stated in the report that funding will be used in future years to support efficiency initiatives.
The report noted that the $2 million projected deficit doesn’t account for any additional income from the Pooled Investment Fund beyond the $10 million already included in the budget, nor does it include any unplanned transfers to capital reserves.
The report also detailed that, based on current projections, $5.5 million will be spent this year to support Bader College, which includes “$1.3 million to fund fire alarms, furniture upgrades, and electrical work.” This projected amount is reported to be $1.9 million higher than the initially budgeted support request of $3.6 million.
READ MORE: After $6 million spent on repairs, a new academic model is set for Bader College
Overall, the University’s projecting higher revenue than expected for the 2025-26 fiscal year. Total revenue is forecast at $703.1 million, about $9.3 million above the approved budget of $693.8 million.
The increase is largely due to an additional $19.5 million in government grants, tied to new funding for STEM programs and expansion funding in education, medicine and nursing. However, the higher grant revenue is partially offset by lower-than-expected tuition income and reduced short-term investment earnings.
This projection comes three months before Queen’s is set to announce their 2026-27 budget at the May 6 BOT. Following Premier Doug Ford’s recent post-secondary announcement, the University will be able to further raise tuition in an effort to close the deficit, while also advocating for additional provincial funding.
Tags
Board of Trustees, deficit, Donna Janiec, Operating Budget
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