University of Victoria announces budget cuts by $13M amid decline in international student enrollment

The University of Victoria has revealed plans for budget cuts in the upcoming academic year, citing a notable decrease in international student enrollment as a primary factor. The institution disclosed that it will be reducing its operating budget by four percent, amounting to approximately $13 million.

This decision follows last year’s budget reduction of $17 million, albeit with a significant distinction: while last year’s cuts were applied uniformly across all sectors, this year’s reductions will primarily target the operating budget.

UVic attributes the financial strain to a sustained decline in international student admissions, which poses a significant challenge for a university heavily reliant on revenue from foreign student tuition fees. International student fees typically exceed domestic rates by four to five fold.

In a statement released on Wednesday, UVic lamented that despite maintaining healthy domestic and graduate enrollments, international undergraduate admissions have plummeted to their lowest levels in over a decade, constituting only 11 percent of total enrollment.

“While our domestic and graduate enrolments are healthy, our international undergraduate enrolment is the lowest it has been in over 10 years, at 11 percent of overall enrolment,” the university said.

Anticipated staff layoffs, minimizing disruptions to students 

While committed to honoring existing collective agreements regarding salary increments, UVic acknowledged that staff layoffs would be unavoidable in certain departments due to the scale of the budget cuts. The university pledged to provide support to affected employees and ensure compliance with contractual obligations.

“Given the size of the necessary budget cut, unfortunately staff reductions will be unavoidable in some areas,” said the university.

“We will ensure affected employees are supported and that collective agreements are followed.”

Scholarships, research grants, and essential services such as childcare and housing support will be shielded from budget reductions.

Impact of federal policies on enrollment and strategies for future sustainability 

The university also highlighted the impact of federal policies on student enrollment, particularly the recent announcement of a cap on new student visas for the next two years by the Canadian government. This measure aims to alleviate pressure on the housing market but is expected to further impede international student recruitment efforts.

UVic noted that delays and backlogs in the immigration system, coupled with heightened global competition particularly from countries like China and India, have compounded enrollment challenges. Additionally, geopolitical tensions and diplomatic disputes may have dampened international interest in Canadian universities.

In response to these challenges, UVic outlined strategic initiatives aimed at diversifying recruitment efforts, introducing new academic programs, and pursuing additional provincial funding to mitigate budgetary constraints.

“Finally, geopolitical factors and diplomatic disputes may be impacting international interest,” said UVic.

Budgetary pressures and reassurance from government officials 

UVic’s predicament reflects a broader trend among Canadian universities grappling with declining international student enrollments and subsequent financial strains. 

In October, Vancouver Island University projected a $20.2 million deficit for the upcoming year and announced plans for a 10 percent budget reduction across academic and non-academic departments.

Despite these challenges, both UVic and government officials remain optimistic about the university’s resilience. British Columbia Premier David Eby cautioned against prematurely sounding the alarm, emphasizing the need for strategic adaptation rather than panic.

Premier David Eby stated that he deems it “premature for UVic or any other school to be hitting the panic button yet.”