Dalhousie University facing $20M deficit, across-the-board cuts

Dalhousie University recently unveiled its final operating budget for the upcoming year, revealing a deficit of $20.6 million. The university plans to run deficits in 2025-26 and the following year, with the aim of achieving a balanced budget by 2027-28. This decision comes as universities and colleges across Canada face challenges stemming from reduced international enrolments and rising costs that outpace government funding.

In a message included in the budget document, university provost and chair of the budget committee, Wanda Costen, acknowledged the shared financial struggles experienced by institutions nationally and globally. She emphasized the need to address these challenges in a way that aligns with Dalhousie’s objectives and priorities.

To address the deficit, all faculties and units at Dalhousie are required to reduce their budgets by one percent. Additionally, they must absorb the costs associated with compensation increases outlined in collective agreements for faculty and staff within their budgets. This shift marks a departure from previous practices where compensation increases were funded through the overall university budget.

The projected costs of absorbing compensation increases amount to approximately $50 million over three years, equating to a four percent annual increase. As a result, faculties and units are effectively planning for a five percent budget reduction in the upcoming year. These cuts are expected to lead to job losses among faculty and staff, impacting program offerings, class sizes, and the quality of education.

David Westwood, president of the Dalhousie Faculty Association, expressed concerns about the impact of budget cuts on faculty, staff, and students. He suggested that the university should prioritize its academic mission over infrastructure projects, like the construction of a new NHL-sized rink. Westwood stressed the importance of maintaining the core focus on education.

The Dalhousie Student Union also voiced apprehension about the budget cuts and their implications for students. Reductions in course offerings, increased class sizes, and diminished student support services could negatively affect the quality of education and student well-being.

While tuition fees for Nova Scotia residents in undergraduate programs remain frozen, international students and graduate students face fee increases. New and returning international undergraduates not covered by tuition guarantee pricing models will see a 6.7 percent hike, while international graduate students will face a 7.2 percent increase for non-thesis programs.

The university attributes the financial challenges in part to federal government changes that capped international student permits, leading to decreases in international enrolment. Dalhousie is working to stabilize and reverse these declines, but acknowledges the uncertainty surrounding near-term enrolment growth.

In response to the budget constraints, Dalhousie University is implementing measures to address the financial shortfall while striving to maintain its academic mission and support student success. The university’s leadership team is committed to navigating these challenges in a manner that aligns with faculty and unit goals to the best of their abilities.