Carleton University stated its increasing financial deficit is “significantly higher” than the $26-million May projections, according to a Nov. 8 statement.
“Current financial forecasting suggests that [the deficit] will continue to increase without serious intervention,” according to the statement, released on the university website and emailed to employees.
The university did not specify the exact figure of the new deficit, following a request from the Charlatan.
Carleton’s media relations officer, Steven Reid, said the university had no further comment on the matter.
At the end of the 2023-2024 year, the university’s financial deficit stood at $50.1 million. This marked an almost 400-per-cent increase from the 2022-2023 deficit of $13 million.
At a May 3 senate meeting, an operating budget presentation outlined an estimated $288 million in lost revenue in 2023-2024 and a three-per-cent budget cut during the 2024-2025 year.
The university will be moving into a period of multi-year deficits, according to university provost Pauline Rankin.
The 2024-2025 proposed deficit will also likely classify Carleton as a high financial health risk under Ontario’s university financial accountability framework.
The university cited the Ontario domestic tuition freeze and lower enrolment caused by the international student cap as reasons for the growing deficit.
Ontario domestic tuition rates were reduced by 10 per cent in 2019 and have remained frozen since.
“While this has been beneficial for students, it has had a destabilizing effect on Carleton’s financial health,” the email reads.
The federal cap on international undergraduate student visas has resulted in a 55-per-cent reduction in first-year undergraduate international student enrolment at Carleton, according to the statement.
Carleton also experienced a 35 per cent reduction of international graduate students.
To address the financial challenges, the university said it will implement cost containment and revenue growth strategies.
The university has not yet released any details about further plans.
“This will require consciously moving away from the status quo while continuing to uphold our academic mission and prioritize the student experience,” the statement reads.
Carleton is also inviting the community to share suggestions on next steps.
Featured image by Sara Mizannojehdehi.
