Budget sustainability

Like many institutions across Canada, TRU is experiencing a sudden and sharp drop in international enrollments, on a scale that is happening faster than expected. The number of international students on our campus this year has dropped 26 per cent overall, while the number of first-year international students has dropped by 53 per cent.

This decline, combined with structural cost pressures, has created an operating deficit projected to be $25 million to $30 million by 2027-28, and a $7 million to $10 million budget shortfall this year, which is higher than the deficit projected in March when our budget was approved.

Public universities in British Columbia are required by law to balance their budgets. We now have 18 to 20 months to make budgetary changes. To get there, we must act quickly and intentionally. The necessary work is already underway.

I know that many of us are already feeling the strain of uncertainty. We will be transparent about what is ahead. We anticipate employment reductions. Discussions will be had about changes to programs and services, following due process pursuant to TRU’s policies and collective agreements. Everything is on the table. These will be among the hardest decisions we’ve had to make. In our Future TRU will live within our means while we grow our means.

Over the next 18-20 months, we will make decisions with compassion and respect. We will adhere to the formal processes outlined in our collective agreements and policies. We will communicate openly every step of the way. Our academic values in research and education will lead our decisions, and our budget realities will inform these.

This is a defining moment for TRU. The work ahead will challenge us, and it is the foundation for a university that will be stronger, more focused, and built to thrive. We will build our Future TRU — a resilient, innovative, and student-centred research university that will redefine what it means to be a university.

Our long-term vision for use-inspired research and education, academic excellence and access, and flexible learning remains bold.

We have positive indications already. The number of domestic students has increased by five per cent this year. We have more first-year domestic students this year than we did last year. In research, we have exceptional use-inspired research underway, funded through a range of sources and impacting locally and internationally.

This is good news that points to our future. I want to let you know what will happen next. In early October, we will share a deficit mitigation plan with our Board and community. We will host consultation sessions, update our budget website, and respond to your questions. We will listen. We will keep you informed.

We will strive forward — together.

Thank you for everything we each bring to TRU. Our work, our care, and our courage matter more now than ever. I genuinely believe that the university we become through this moment will be even stronger, more focused, and better equipped to serve our students and communities.

Kukwstsétselp,

Airini
President and Vice-Chancellor
Thompson Rivers University

As we near the final stages of TRU’s financial planning for 2025-26, we now have a clearer and more realistic understanding of what is required to achieve a balanced budget, both for the next year and in the years to follow.

The impacts of declining international student enrolment will be felt for at least the next five years. With that in mind, we are planning for financial sustainability and budget stability by 2030. Part of the effort to get there will require envisioning TRU differently, including having fewer than 3,000 international students. We will also need to look closely at our employee complement as we contemplate a university that serves fewer students.

As we move forward, TRU will prioritize:

• New program development within our existing faculty complement that is aligned with provincial priorities, our mandate for open learning and to serve regions, and student demand based on market research. This may include expanded options in trades, health, engineering, cyber security, data analytics, the environment, health sciences, and kinesiology.
• Sustainable enrolment strategies that enhance domestic and international student recruitment and retention.
• Operational efficiencies and new revenue opportunities that strengthen TRU’s financial position while maintaining our commitment to quality education.

These efforts will require the cooperation and collaboration of all of us.

At Monday’s Senate meeting, senators were told that to balance the 2025-26 budget, TRU will apply a one-time “vacancy discount” based on permanently removing approximately 75 positions from our current list of 129 vacancies. This approach recognizes that some vacant positions are unlikely to be filled immediately and allows TRU to close the gap without deeper cuts to positions, programs and services. This is a one-time adjustment that does not resolve the ongoing structural financial challenges TRU faces in the years ahead.

We encourage everyone to stay informed and engaged in these discussions. Updates will continue to be shared through regular communication channels, and the budget sustainability webpage remains a key resource.

I would also like to remind everyone about an upcoming virtual budget sustainability forum with VP of Administration and Finance Matt Milovick and I, which will happen on March 5. More information can be found on TRU Connect.

Kukwstsétselp,

Gillian Balfour
Provost and Vice-President Academic

Yesterday, I shared an update at Senate, including our latest progress in finding cost reductions sufficient to balance the next budget, which is expected to be presented to the Board of Governors later this spring.

TRU must find $16 million to balance the budget. To date, budget holders (representing faculties and departments) have found $10.22 million, the result of finding five per cent in savings from each of their base budgets. As well, we have found $1.9 million in savings from reduced international agent commissions, and approximately $2.25 million from reduced UI costs, the closure of the Westgate residence, and the transfer of credit card convenience fees to users. See chart below

We still need to find approximately $1.6 million more to balance our budget, and we will look for cost-reduction opportunities with the least impact on our core mission.

As TRU moves through this budget cycle and into the next ones, we will look closely for new strategies to address projected deficits in the years ahead. A key part of planning will focus on how program and faculty innovation can help TRU meet emerging provincial priorities and develop sustainable enrolment strategies for domestic and international students.

We will continue to look for new revenue opportunities, ways to enhance program delivery and means to leverage existing strengths. Program renewal and development are critical in light of declining international enrolments and shifting provincial priorities. These efforts will require input, creativity, and collaboration across the TRU community.

We encourage everyone to stay informed and engaged with these discussions, including at the department level. Updates will continue to be shared through regular communication channels, and the budget sustainability website remains a valuable resource for information.

Thank you to all those who have provided feedback and ideas to budgetideas@tru.ca as we navigate this period of uncertainty together. By working together, we can address these challenges and ensure that TRU continues to serve our students and communities effectively.

Kukwstsétselp,

Gillian Balfour
Provost and Vice-President Academic

At the Board meeting, we told governors that TRU’s approach to balancing future budgets will be based on a three-pronged approach — we will search for new revenue opportunities, carefully build financial reserves and look for ways to cut costs.

We will need to go through this process from a position of compassion, knowing that what lies ahead will be disruptive to people’s lives. We need to be compassionate and empathetic. TRU has not been in this place before.

We advised the board that while TRU will see a surplus this year, we will face budget deficits starting next year and continuing until at least 2028/29. This year’s surplus will be set aside to help offset future deficits.

However, to achieve a balanced budget for 2025/26, TRU must reduce expenditures by approximately $20.4 million, or 7.4 per cent. Several strategies have been proposed to meet this target, including:

• A one per cent reduction in non-compensation budgets across all faculties, schools and departments, yielding $2.7 million in savings annually.
• Closure of the Westgate student residence, saving $700,000. Westgate was temporarily established in 2021 to address a pressing demand for student housing.
• Passing on transaction fees for credit card transactions to end users, saving TRU $800,000 annually.
• A reduction in agent commissions related to international student recruitment, resulting in $1.5 million in savings.
• Savings of $2 million to $5 million through adjustments to sessional/contract instructor teaching loads caused by fewer course registrations.
• Savings of $7 million to $10 million by looking closely at existing vacancies lists and eliminating 70 to 75 unfilled positions that will not be needed.
• Other targeted non-compensation reductions could yield $6 million to $10 million in savings.

While these changes will have multi-year impacts on our costs, additional reductions of approximately five per cent annually will still be needed in 2026/27 and 2028/29 to keep TRU’s budget balanced.

As we move through this difficult period, which we know will impact our people, we remain committed to our mission and strategic priorities. While reductions will be necessary, we will continue to invest in high-priority projects such as TRU Wildfire and other academic initiatives critical to TRU’s future growth. We will also explore opportunities for new revenue streams and strategically develop new or renewed academic programming to address enrolment challenges.

We encourage all employees to continue contributing ideas and feedback through budgetideas@tru.ca. Your input is invaluable as we identify ways to meet these challenges collaboratively. Regular updates, including FAQs, will be available on our budget sustainability website to ensure you remain informed about developments.

These next few years will require careful planning, creativity and collaboration across TRU. We are confident that working together will help us meet these challenges while ensuring TRU’s long-term sustainability and continued ability to serve our community.

Kukwstsétselp,

Gillian Balfour
Provost and Vice-President Academic

Matt Milovick
Vice-President, Administration and Finance

The group, which comprises deans, AVPs and other senior leaders at TRU, was advised, based on current forecasting, that the university will post a budget surplus of $14 million for the 2024-25 year. Nine million dollars of the surplus will be placed in an operating reserve as we plan for future years and significant budget declines. The remaining $5 million surplus will support strategic investments in key areas and select capital projects.

However, leaders were also told that this is the last year of surplus budgets for some time as TRU, as with other universities, is entering into a period of instability due to sharply declining international enrolment. Based on the federal government’s policy changes and the damage done to Canada’s reputation as an educational destination, we expect international student enrolments will continue to fall until relevant new programs are established at least three years from now.

Significant, immediate action will be required to balance the 2025-26 budget. TRU’s leaders were told that budget reductions of approximately seven to eight per cent will be required to achieve financial balance for the next fiscal year, with more reductions expected for the next three years. This is based on current modelling and could change if external factors change.

The guiding principles and processes for identifying how reductions will be made will be set out in the coming weeks. There are several areas where reductions can be made.

In a recent planning exercise, department leaders were asked to identify ways to save one per cent from their annual non-compensation budgets. Those proposed cost savings will be adopted and implemented shortly. In addition, travel expenses for all areas will also be reduced by 15 per cent.

Another area we are reviewing is our significant number of unfilled vacancies. We will look carefully at these positions and future vacancies and how they are managed to determine which can remain unfilled and which are critical to TRU’s mission. In some cases, we may also need to consider reducing existing positions. TRU is not considering an Early Retirement Incentive Plan for any employee group.

TRU will continue to invest in high-priority strategic projects such as TRU Wildfire and other similar academic initiatives, as these projects are critical to TRU’s future growth. We must continue to focus on strategically important objectives. We will examine every opportunity for new revenue and continue to invest in high-priority projects, including new or renewed academic programming.

These next years will present TRU with unprecedented challenges, similar to what most Canadian universities now face. We are confident, however, that with proactive action, strategic decision-making and pan-institutional collaboration, TRU can emerge from this financial crisis stronger and better able to serve our societally important mission.

Further to last week’s update, we’d again like to thank those who have sent questions and suggestions to our dedicated budgetideas@tru.ca email and continue to encourage others to take up the opportunity. We value your feedback.

We will continue to provide updates as information becomes available. Regular updates, including FAQs, will also be made on our budget sustainability website. We encourage you to visit the page to stay informed.

Kukwstsétselp,

Gillian Balfour
Provost and Vice-President Academic

Matt Milovick
Vice-President, Administration and Finance

As I have said before, changes to the federal government’s immigration policies — which have significantly reduced international student enrolments at Canadian universities, including TRU — will have lasting effects on our budget.

In the weeks ahead, we will need to make decisions to invest in some areas while reducing in others. At this time, budget holders (from faculties, schools and service units) are considering measures to get us to a balanced budget for 2025/26. Apart from a targeted reduction in new hiring, no other decisions have been made. Current planning by budget holders will inform future decisions.

As provost and chief budget officer, and with the support of university leaders, my focus is to make decisions that thoughtfully consider our people, our students and the university’s long-term mission and sustainability.

Updates will be provided through Senate and Board of Governors meetings and TRU Connect as new information becomes available. Regular updates, including FAQs, will also be made on our budget sustainability website. I encourage you to visit the page to stay informed.

Kukwstsétselp,

Gillian Balfour
Provost and Vice-President Academic

TRU is not immune to these effects. Our incoming enrolment numbers this fall have already declined by 35 per cent, and we expect even greater declines beginning in January 2025. In the case of many programs, these declines will not be temporary. Overall numbers will not rebound until or unless new programs are in place that meet new federal requirements, a process that typically takes several years.

These enrolment declines are expected to have significant impact on TRU’s budgets.

TRU will continue to invest in high-priority strategic projects such as TRU Wildfire and other similar academic initiatives, as these projects are critical to TRU’s future growth. We must continue to focus on strategically important objectives including development of new and revitalised programs.

At the same time, TRU needs to reduce costs for 2025-26. Provost Gillian Balfour and Vice-President Finance and Administration Matt Milovick are leading this process and have begun talking to budget managers about measures that will be required, which will include hiring restrictions.

We know that this kind of uncertainty may cause people concern. I want to assure you that our key priority is to support our community, ensuring that decisions are made thoughtfully and with respect and understanding for your work and the students you serve. While difficult choices might lie ahead, please know that these will always be made with care and consideration, keeping the well-being of people as well as the long-term stability of TRU in mind.

In the coming weeks, you will receive more detailed updates about our plans and the steps we will take to ensure financial sustainability. We will post updates and information about the budget process and financial sustainability on this web page as well, to ensure all can stay informed. We will also create opportunities so that you can share your concerns, ask questions, and provide feedback. A dedicated email address – budgetideas@tru.ca – has been created to receive comments and questions.

My hope is that we can find a way through this period in a way that addresses the immediate challenges while strengthening our community for the future. This will require the effort, commitment and involvement of all who work at TRU, and I look forward to working with you to find the best course.

Sincerely,

Brett Fairbairn
President and Vice-Chancellor

With on-campuses classes having started a few weeks ago, the campus is a buzz of activity, yet interest from international students compared to previous years is down sharply. A primary factor, which will be felt for years to come, is the number of federal policy changes that have affected international student interest and access to Canada.

Brett noted that with fewer international students comes fewer dollars — a reality TRU will need to face to avoid future deficits while balancing the need to invest in new, strategic programs to attract new students.

Sincerely,

Brett Fairbairn
President and Vice-Chancellor