CBU approves 2025-26 operating budget that includes $6.8M deficit
Cape Breton University Faces Budget Shortfall, Cuts Programs and Positions
Cape Breton University is set to make significant changes in response to a budget deficit, with plans to cut programs and eliminate positions over the next year. The university’s board of governors recently approved a $106.5 million operating budget for the upcoming school year, which includes a $6.8 million shortfall.
Gordon MacInnis, the vice-president of finance and operations at CBU, attributed the budget challenges to the federal government’s restrictions on the number of international students allowed to study in Nova Scotia. This decision has had a significant impact on student enrollment, particularly at CBU where 77% of students are international.
As a result, the university expects a drop in enrollment from 9,100 students to 5,400 students, leading to a revenue loss of approximately $33 million. To address this financial strain, CBU will consolidate its operations back to its main campus on Grand Lake Road in Sydney, discontinuing classes and offices in downtown Sydney.
Furthermore, CBU plans to reduce its workforce by at least 56 positions, with 14 positions being eliminated through attrition and not filling vacancies. The university has also implemented an early retirement incentive program and will not renew 56 term positions.
Despite these difficult decisions, CBU is prioritizing the placement of full-time staff into new positions at the university’s upcoming medical campus, which is scheduled to open this summer. MacInnis stated that the university is anticipating a balanced budget by 2027-28, but acknowledges the uncertainty of international markets rebounding as expected.
Three programs have already been suspended at CBU due to the decline in international student enrollment, including post-baccalaureate programs in health-care management and business management. Additionally, student fees will be increased, with a three percent tuition hike for out-of-province students. However, students from Nova Scotia will not be affected by this increase due to a provincial tuition freeze.
As Cape Breton University navigates these financial challenges, the institution is committed to adapting and evolving to ensure its long-term sustainability and success.
