Queen’s is drawing on its reserves to cover a projected multi-million-dollar deficit.
The Board of Trustees released their annual fiscal report on May 17, revealing Queen’s is expected to run a deficit for a second consecutive year. For last fiscal year, Queen’s ran a $26.4 million deficit.
Interim Provost and Vice-Principal (Academic), Teri Shearer, recognized the use of university reserves is not sustainable, and committed to balancing the budget over the next four years, according to her report to the Board.
For Ontario students, the provincial tuition freeze implemented in 2019 will continue into the next academic year. The University is awaiting approval from the Ministry of Colleges and Universities to raise tuition for incoming Ontario students in law, computing, and engineering by 7.5 per cent.
Residence fees were raised three per cent for the upcoming year, the lowest increase compared to other Ontario universities.
Queen’s surpassed its fundraising goal for the 2022-23 academic year after garnering $124.7 million. Alumni donations increased by 23 per cent, with 11 gifts accounting for 77 per cent of fundraising dollars.
The University attributes the projected deficit to a sustained decrease in undergraduate international student enrollment, decreased enrollment in the Master of Business programs at the Smith School of Business, and the ongoing tuition freeze for Ontario students.
Downturn in Undergraduate International Student Enrollment
Queen’s cited a 10 per cent decrease in international students for the upcoming school-year, primarily due to a downturn in applications from students in China. The report attributed the downturn to the ongoing effects of the COVID-19 pandemic.
Queen’s is looking to boost international enrollment by developing new awards for international students. The University is specifically bolstering recruitment efforts in southern Asia, the Middle East, and northern Africa.
The University proposed tuition increases for international students across the faculties of arts and science, commerce, and health sciences. International student tuition is currently nine times higher than Ontario students enrolled in arts and science, and more than three times higher than Ontario commerce students.
Overall, Queen’s received 53,000 applications to undergraduate programs, and will admit 5,575 for the 2023-24 school year.
Downturn in Master of Business Student Enrollment
The Smith School of Business is expected to have a significant reduction in graduate enrollment, according to the report. The University suggests economic factors including interest rates, inflation, and pandemic burnout are to blame.
Lower than projected enrollment in the Master of Business programs led to a $13.7 million negative variance Queen’s projected there will be 11 less business masters students in the 2023-24 incoming class.
Overall, graduate student enrollment is expected to decrease for the 2023-24 school-year. The downturn is attributed to recruitment challenges.
Tuition and Hiring Freeze
Queen’s cut its projected deficit in half by cutting salary and benefit expenditures through a deferral and delayed hiring of faculty and staff. Queen’s imposed a hiring freeze for all full-time positions not already advertised in May. Exceptions will be made on a case-by-case basis, according to a press release.
The University claims the 2019 tuition cut for Ontario students, and subsequent tuition freeze, has cost the university $179.4 million and is largely responsible for the strained budget.
Queen’s Government and Institutional Relations (GIR) coordinated several meetings between provincial government officials and Principal Patrick Deane to discuss the
financial sustainability of Ontario’s post-secondary education sector. According to Deane’s November report to Senate, he’s lobbying to lift the tuition freeze.
Tags
Board of Trustees, Budget, deficit
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