McGill University is facing a projected $45-million deficit in the next fiscal year and is implementing cost-cutting measures and layoffs to address the issue. The university cites new Quebec government policies, declining international student enrollments, and rising tuition costs as contributing factors.
McGill University is preparing for a wave of cost-cutting measures and layoffs to counteract a projected $45-million deficit in the upcoming fiscal year. Administrators at the Montreal-based institution attribute this fiscal strain to a confluence of factors, including new Quebec government policies and the ongoing challenge of declining international student enrollments, a trend mirrored across Canadian post-secondary institutions.
McGill's president, Deep Saini, expressed concern during a town hall meeting on Friday, stating that the pressures stemming from these policies significantly impact the university's core mission and its standing as a globally recognized institution. McGill provost Christopher Manfredi elaborated on the severity of the situation, projecting a $15-million deficit for the current fiscal year, with the potential for a cumulative deficit reaching $194 million by 2028 if no corrective actions are taken.To address this looming financial crisis, McGill is strategizing a multi-pronged approach aimed at balancing its budget and eliminating projected deficits of $45 million, $16 million, and $14 million over the next three fiscal years. Manfredi revealed that staffing constitutes 80% of McGill's operational expenses, indicating that a substantial portion of the savings will be derived from reducing administrative and academic headcount. While the university aims to achieve some cost reductions through attrition (not filling vacant positions), limiting overtime, and adjusting working hours, Manfredi acknowledged that these measures alone may not suffice. He warned that, in certain situations, positions will be abolished, leading to job losses, a prospect that the university recognizes as unsettling and not taken lightly. The exact number of layoffs remains undisclosed.During the meeting, Manfredi emphasized that each faculty has been assigned a budget target for the 2025-26 fiscal year and can achieve these targets by discontinuing or scaling back certain activities, eliminating courses with low enrollment, prioritizing teaching by tenure-track faculty, and exploring opportunities to increase enrollment. Furthermore, McGill is launching a comprehensive, multi-year initiative dubbed Horizon McGill, designed to enhance administrative efficiency and program delivery. Manfredi characterized this initiative as a 're-examination of the university's budget model.'McGill's financial challenges are not isolated. Universities and colleges nationwide are grappling with deficits and budget cuts, largely fueled by the federal government's cap on international student admissions, implemented in January 2024. ' Virtually every university in Canada is facing budgetary deficits at the moment,' Manfredi stated. Adding to McGill's financial woes, the Quebec government enacted legislation in December granting it broad authority to restrict the number of international students in the province based on region, institution, and field of study. Manfredi also highlighted several 'unexpected' Quebec policies that exacerbate McGill's financial strain, including the government's 2023 decision to raise tuition fees for out-of-province students by $3,000 annually, citing the need to safeguard the French language in the province. The government also opted to reclaim a substantial portion of international student fees and redistribute them to French-language universities. An additional policy mandates that the three English-language universities in Quebec must ensure that 80% of undergraduate students from outside the province attain an intermediate level of French proficiency by graduation, commencing in fall 2025.Concordia University, Quebec's second-largest English-language university, has also disclosed significant financial difficulties in the wake of these new policies. Last week, the university announced a projected $34.5-million deficit for the current fiscal year as part of a government-approved financial recovery plan. However, Concordia anticipates a $79-million deficit in the 2025-26 fiscal year, attributed to factors such as declining enrollment and salary increases. This deficit must be reduced to $31.6 million according to the approved plan. The university intends to maintain a hiring freeze and actively recruit more students, but it still requires finding nearly $22 million in savings to meet its mandated deficit target
Mcgill University Deficit Layoffs Cost Cuts Quebec Government International Students Tuition Fees
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