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Special CamNews��

91�������� is in the final weeks of the current fiscal year, which runs from April 1 to March 31. This means our colleagues in finance are diligently working on final budget numbers for this year, while the College Executive Team continues to work on projecting what next year’s budget might look like.��

Revenues vs. expenses��

The college has a total budget of approximately $179 million in 2024/25. The largest source of revenue is provincial operating grants (45 per cent) with tuition and fees the second largest (33 per cent). Budgeted international tuition accounts for 19 per cent of total revenue, which is around $34 million.��

In the same year, salaries and benefits accounted for 79 per cent of total expenses so it is an area we need to look at for savings after exhausting other options, such as the essential spending mandate, freezing new hires, and pausing college-wide events like Conversations Day and the winter holiday party.��

Current fiscal year 2024/25��

As outlined in , the college has experienced a sharp decline in the number of international students in the fall and winter semesters. The revenue variance resulting from the reduced enrolment will be over $5 million at the end of the fiscal year on March 31.��

One-time revenue and cost savings realized throughout the year have offset international tuition to some extent. As a result, we are now projecting a deficit of approximately $3 million at the end of this fiscal year.��

Next fiscal year 2025/26��

International student enrolment numbers are expected to further decline as noted and the cumulative tuition shortfall is projected to be at least $10 million.��

While we were able to manage some of the loss in 2024/25, as we budget for 2025/26, we need to adjust expenses to match the reduced revenues.��

Cost reductions to offset the $5 million revenue loss in 2024/25 were identified and workforce adjustment processes have been initiated. Unfortunately, this work will need to continue. The college is looking at a further $5 million in reductions if we are to balance our budget in 2025/26.��

As required under Section 31 (1) of the , we expect to propose a balanced budget for the approval of the Board of Governors. Realistically, it will take some time before savings are realized, so we could end the next fiscal year in a deficit position as well. In this situation, we will work with the Board of Governors and the Ministry to seek the necessary approvals.��

I truly hope this information is helpful as we all try to manage the challenging situation that we have been forced into by the federal government’s policy reforms.��

Please take care and look after each other.��

FAQs on commonly asked budget topics.��

Current fiscal year 2024/25 - what size deficit is the college expecting?��

• With the full impact of the $5 million international tuition revenue loss in the final quarter of the year, we now are forecasting to end the 2024/25 budget year in a deficit position.��
• There are many variables in the last fiscal quarter so our best estimate at this time is a deficit of approximately $3 million at March 31.��

Next fiscal year 2025/26 - what are the projections?��

• The cumulative tuition shortfall is projected to be at least $10 million in 2025/26.��
• We have developed a plan to offset the revenue loss but it takes time to follow collective agreement processes and we expect to end a second year in a deficit position.��

Why not run a deficit?��

• Running a deficit does not solve the college’s financial challenge and requires sufficient accumulated reserves to offset the revenue shortfall, expected to be at least $10 million in the 2025/26 budget year.��
• Colleges are not permitted to plan for a deficit without government approval.��
• Approval requires a valid plan that identifies clear steps to increase revenue or reduce expenses and return to a balanced financial position within a specified time, while meeting service delivery obligations outlined in the �ʶٹ�.��

Have you asked the ministry for additional funds?��

• We have been raising concerns about the impact of the reforms with the ministry, local MPs and the federal government.��
• We do not expect any bailout.��
• We need to reduce expenses and show we are working to avoid a deficit, while meeting service delivery obligations.��

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