After budgeting for $24 million deficit, Queen’s projects $29.6 million in losses for 2020-21

Report shows student fee revenues $19.5 million lower than budgeted

The additional losses are largely a consequence of lower enrolment levels than were initially budgeted.
Credit: 
Journal File Photo

At last Friday’s Board of Trustees meeting, Donna Janiec, vice-principal (finance and administration), provided a report on Queen’s financial projections for the 2020-21 year.

The report, which was provided for informational purposes only and not discussed at the meeting, shows projections of a $29.6 million deficit for the 2020-21 academic year. The University had previously budgeted a $24 million deficit, the report said, crediting the losses to ripple effects associated with the COVID-19 pandemic.

Queen’s posted an operating surplus of $15.4 million in 2019-20.

The additional losses are largely due to lower-than-expected tuition and non-credit revenue, a consequence of lower enrolment levels than were initially budgeted.

READ MORE: Board of Trustees: Principal Deane talks new policy for naming buildings 

Ancillary Operations, which includes housing and hospitality services, have a projected deficit of $17.2 million after budgeting a $0.8 million deficit. Meanwhile, after budgeting $416 million in student fee revenues, the University is now projecting the total to be $396.5 million—a $19.5 million negative variance.

Other revenue—which is comprised of unrestricted donations, other income, and research overhead—is expected to be $3.5 million below budget. The University largely attributed the losses to the decline in membership, rental, and programming revenue for Athletics and Recreation (A&R). 

Investment income is also expected to see a shortfall, pulling in $13.8 million in revenue despite budgeting $17.5 million in revenues. Queen’s saw $50.7 million in investment income in 2019-20. 

The University has been able to offset a number of these losses through savings and cost containment measures, reducing its budgeted expenditures by $27.1 million.

Want to see more like this? Subscribe to our newsletter, Campus Catch-Up to receive regular updates right in your inbox.

When commenting, be considerate and respectful of writers and fellow commenters. Try to stay on topic. Spam and comments that are hateful or discriminatory will be deleted. Our full commenting policy can be read here.