Faculty anxiety grows as University of Windsor faces budget deficit

The University of Windsor is bracing for tough financial decisions as a growing budget deficit prompts conversations around cuts.

The university’s financial outlook has worsened considerably so far this school year, with the projected deficit ballooning from $5 million to an estimated $10 to $15 million.

Gillian Heisz, the school’s vice president of finance and operations, expects the situation to worsen next year, with early projections indicating a deficit upwards of $30 million for 2025-26.

“It’s not unusual for the number to be large in the fall,” Heisz told CTV News on Monday.

“But I predict this year it'll probably hold.”

She mentioned that her department typically flags the next year’s budget forecast in November but presented the number to the institution's Board of Governors last week, indicating that the university is actively seeking ways to mitigate the shortfall.

“We’re putting students first in every decision that we make,” she said.

“But we are expecting to see some more cuts this year and next year.”

Kerr House Faculty Association on University of Windsor's campus on Oct. 28, 2024 in Windsor, Ont. (Travis Fortnum/CTV News Windsor)University of Windsor Faculty Association President, Pierre Boulos, noted that these discussions unsettled staff.

“No one likes to hear cuts,” he said.

“We've endured many years of budget cutbacks at this university… Right now, the cutbacks that are projected have a lot of our members on edge. I'd say they're all worried.”

Approximately 75 to 80 per cent of the university’s operating budget is spent on salaries, according to Heisz, covering not just faculty but staff across the institution.

This means layoffs or retirement offers are likely solutions to address some of the deficit.

“Maybe some people who are beyond the age of 65 might be more willing to leave,” said Boulos.

The stress of impending cuts, he said, has proven enough to drive some staff towards early retirement.

“We’ve had a lot of people approach us, who aren't quite at 65, wondering what their options are. They’re looking to that because of the anxiety on campus.”

International student enrollment decline impacts revenue

One key driver of the university’s financial challenges is a decline in international student enrollment, largely due to recent changes to Canada’s federal immigration rules.

International students have long served as a vital revenue stream for Ontario’s universities and the new policies appear to be making Canada a less attractive destination for foreign students.

This fall, total enrollment at the University of Windsor reached 15,676 full-time students — comprising 10,265 domestic undergraduates, 702 international undergraduates, 1,490 domestic graduate students and 3,219 international graduate students.

This means that international students account for 3,921, or 25 per cent, of the student body. That’s a decrease from 4,436 international graduate students the previous year.

“It's just not seen as friendly of a country, unfortunately, for international students,” Heisz said.

“So, when a good portion of our budget is based on international student tuition and that softens, it's hard for us to adjust quickly.”

The Council of Ontario Universities (COU) echoed this concern.

In a recent statement, COU President and CEO, Steve Orsini, outlined the far-reaching consequences of the federal changes.

He said Ontario universities were grappling with collective losses of more than $300 million for the 2024-25 academic year, which could double the following year.

“Federal changes to international study permits have had a profound impact on Ontario’s universities,” said Orsini.

“Additional changes announced in September are expected to result in further losses.”

He noted that the inclusion of Master’s and PhD students within the international student cap added complexity to the application process, which could discourage highly skilled students from coming to Canada.

Broader challenges for Ontario universities

According to the COU, institutions in the province could face a combined financial loss of over $600 million in 2025-26.

In addition to federal immigration rules, provincial tuition freezes, stagnant public funding and rising inflation were seen as contributing factors.

Boulos questioned whether it was time for Ontario’s government to chip in more money.

“The real issue here is, as a province, are we supporting the university system?” he asked.

In a statement to CTV News, a spokesperson for Ontario's Ministry of Colleges and Universities pointed out that universities are responsible for their own finances, but also pointed to the billions in support the province does provide colleges and universities.

“Our government has provided more than $5 billion in operating funding to the postsecondary sector in 2023-24. In addition, we announced a suite of measures in February 2024 to stabilize Ontario’s colleges and universities, including an investment of nearly $1.3 billion in new funding,” the statement read.

“While institutions are responsible for managing their own finances, our government continues to work to ensure colleges and universities, including the University of Windsor, have the tools to maintain their long-term financial sustainability.”

Despite these financial pressures, both Heisz and Boulos maintained that students remained the priority.

“We're doing our best. We are looking at every lever we can pull,” Heisz said.

She planned to present an updated budget forecast to the university’s Board of Governors next month, providing a clearer picture of what the next academic year might hold.