Operating Budget FAQs

In response to financial challenges, UWindsor established a Budget Balancing Committee (BBC) for the 2024/25 budget cycle. The BBC, an advisory group of managers, professionals, and executives from across the UWindsor campus community, was tasked with identifying solutions to achieve both short and long-term financial sustainability. The committee considered various factors, including provincial and operational revenue constraints, enrolment trends, service delivery quality, collective agreements, staffing levels, inflationary pressures, and the use of reserve funds. Their mandate was to identify a strategy for achieving at least $5 million in savings with as minimal impact on the student experience as possible, resulting in recommendations that were approved by the Provost Budget Committee (PBC) and included in the 2024/25 base operating budget. 

The budget was reviewed and approved by the Board of Governors on April 25, 2024, which includes the 1.5% realignment strategy. The role of the Board is one of strategy setting and policy-making, not management or operational decision-making. It is the role of management to implement the budget, including identifying specifics of realignment activities and implementing budget cuts, in accordance with the realignment strategy mandated by the Board through its approval of the budget.

Like all Canadian universities, the University of Windsor faces uncertainties from global events, geopolitical tensions, and evolving enrolment policies around international enrolment. However, we still need to plan to ensure financial stability. We are making financial decisions rooted in what we do know, while being adaptable to future changes. Revenue is not expected to increase in the next few years, with declining international enrolment already affecting budget targets. Our focus is on making responsible choices to safeguard the University’s long-term sustainability, even in the face of ongoing uncertainty.

During the Nov. 13 Town Hall, it was indicated that the University was projecting at least a $10M budget shortfall in the current fiscal year. Mid-year projections now show a $14M tuition shortfall against budget. This will also have an impact into fiscal 2025/2026.

Challenges beyond our control are affecting revenues. Geopolitical tensions and new federal policies—most notably, the international enrolment caps set by Immigration, Refugees, and Citizenship Canada (IRCC) —are affecting international enrolment revenue, not just at the University of Windsor but at all universities across the country. The financial losses at Ontario universities due to the new federal enrolment caps are projected to exceed $300 million in 2024/25 and expected to double to more $600 million the following year if current trends persist.  

At UWindsor, we have missed our budgeted intake targets for three semesters in a row. This is having a significant impact on our operating budget as international graduate programs have historically been a vital source of revenue for us, representing nearly 29% of our operating budget. The situation is compounded by the fact that we are also dealing with increased personnel and operational costs.

Mid-year projections now show a $14M tuition shortfall against budget.  The University had to utilize its enrolment contingency fund, identify in-year savings, use modest reserves and apply one-time top-up funding from the Post-Secondary Education Sustainability to balance the 2024-25 fiscal operating budget, as required by the Board of Governors.  As a $30M deficit is projected for fiscal 2025-26, efficiency and cost-cutting measures are underway, with significant changes required across many areas.

Each member of the Executive Leadership Team was assigned the same 1.5 per cent budget realignment as the rest of the campus. Spending on Decanal and executive positions represents 3 per cent of the University's operating budget.

Early predictions are that the gap between revenues and expenses for fiscal 2025/2026 will be at least $30M. It is important to note that an operating budget deficit is not unusual in the sector, for example, in 2023/24 at least 10 Ontario universities had operating deficits. 

At UWindsor, it is due to the flow-through effect of the $14M tuition shortfall from fiscal 2024/25; projected lower international tuition revenue due to continuing geopolitical tensions and the new federal international student enrolment caps. 

As well, the 2024/25 fiscal budget had a $2.8M structural deficit, which carries over into fiscal 25/26. At the same time, it is also expected that there will be $12M to $15M in new expenses in fiscal 25/26 due to collective agreements and increased costs for utilities and services unless we act now to mitigate this impact.

About 78% of our current operating budget is dedicated to people-related expenses, encompassing salaries and benefits for all employees, with the majority of these salaries governed by collective agreements. Many of these agreements will come due in 2025.

Negotiations for collective agreements between the University and several unions will commence this spring, as the current agreements are set to expire. We value our relationships with labor unions and are dedicated to working diligently toward fair and reasonable settlements. These discussions will take place amid our ongoing budget challenges and operational reviews aimed at maximizing efficiencies.

Refer to the Finance website.  

For the past three fiscal years ending in 2023/24, the University’s budgets were healthy as we managed a very significant backlog of international students who applied during the COVID-19 pandemic but were not able to travel to Canada until 2022 or 2023.  As a result, enrolment was at an unsustainable level for two fiscal years. The University recognized this and did not budget expenses at the base to match these temporary revenues, which causes a surplus in the Operating Fund. Please refer to the Operating Budget files for more information. 

The audited financial statements are a consolidation of all the funds of the University, not just the operating fund. This includes the operating fund, the ancillary fund (parking, residence, food, etc.), the trust funds (spending from donor-funded accounts), the research fund (externally and internally funded research activities), and the capital fund (including repair and major capital projects). It also includes some expenses that are not budgeted as they are non-cash. Here are the expenses by fund for the year ended April 30, 2024 (actuals, net of internal charges):

Reserves are monies that have been set aside over a period of several years by the Board of Governors and administration for strategic purposes. These are not able to be used to balance the operating budget in a permanent manner, as it is one-time money only. This means that the reserves can be used for one-time expenditures, such as a renovation of a student lounge space or a sessional teaching or co-op student contract but cannot be used to support base or permanent expenditures, such as full time faculty and staff. The Ministry of Colleges and Universities (MCU) reviews the levels of University reserves annually and measures their health in accordance with financial health metrics.

Note 8 of the audited financial statements explains the breakdown of the University’s internally restricted net assets, also commonly referred to as reserves. The section titled “Unexpended operating funds” are reserves that have accumulated through the operating fund.

This will not be easy, and it will require entering an era of reimagining. We will work together as a community to assess current and future operations, services and functions, utilizing engaged and collaborative processes.

In the short term, we will work to identify cost efficiencies and undertake strategic and careful faculty, department and organizational reviews. But with a fiscal challenge of this order of magnitude, we recognize that we must change the way we do our core business of teaching and research, which will involve scrutinising discretionary expenditures and reviewing practices and programs. We also introduced hiring restrictions earlier this fall, which will remain in place for the foreseeable future.

Budget managers, including Deans, should expect an entire recast of their operating budgets with the aim of reducing the structural deficit and helping the University work toward a balanced budget.

All faculties, departments, offices and units are being asked to assess operations and services and spending, particularly discretionary spending that does not support core work and/or does not have a significant return on investment.

While we expect that this level of budget reduction will necessitate headcount changes in some departments, we value the contributions of our employees and will work to minimize the impact on staff. It is anticipated that all employee groups will be affected in some way. The University continues to work with bargaining units on voluntary retirement packages to promote natural attrition.

The activity-based budgeting model will be paused for at least two years, as it incents revenue growth, which is no longer our core objective. Instead, we will right-size our cost base by strategically reallocating and reimagining resources to ensure financial sustainability while prioritizing our students.

The Service Level Agreements will remain in place, and commitments and services will continue, though adjustments in personnel and service delivery will reflect the operational changes anticipated from the budget planning.

Reserves help to fund strategic initiatives and stabilize our finances by providing a modest cushion against unexpected events, losses of revenues and large unbudgeted expenses. They cannot address structural deficits year-over-year, and their levels must be maintained for the long-term benefit of the University.

Many renovations address deferred maintenance needs or were budgeted in previous cycles, funded by capital allocations reserved solely for infrastructure. These projects are essential to maintaining safe, efficient, and accessible campus facilities. This helps us avoid larger costs and issues in the future and ensures we are addressing the evolving needs of our current and future students. We also have ongoing revenue-generating capital projects, such as fitting out spaces for external tenants, and others funded by third-party public-private partnerships. Pausing these would be counterproductive and undermine the university’s financial sustainability.

Our downtown buildings play a key role in our academic mission, housing essential classrooms, programs, and services. They also generate steady alternative revenue through long-term commercial leases. While selling them might provide short-term financial relief, it would end a valuable revenue stream that supports the University's long-term financial stability more than any one-time gains from a sale. We continuously evaluate the usefulness of our physical assets and make decisions where appropriate.

The cost of servicing our debt accounts for only about 3% of the operating budget expenses. Paying off outstanding debt early or refinancing the existing debt would not generate significant base budget savings.

Yes, general carryover funds from the 2023/24 fiscal year are being frozen. This decision, endorsed by the Board of Governors' Audit Committee, is due to the current financial challenges and uncertainty. Freezing these funds is necessary to support the University’s cash flow and reserve planning. While there is a possibility that some funds may be returned in the future if circumstances improve, no specific timeline has been established.

Five vacant positions have been eliminated, and another two will be eliminated following retirements.

As part of its budget balancing efforts, the University has engaged several external consultants to review operations and help identify efficiencies, as they provide an objective perspective. This is a common practice in the higher education sector, as well as others. However, all decisions were made by University administrators with a focus on aligning with the institution's core mission, strategic priorities, and long-term viability. 

Reorganizations were necessary to address redundancies, adapt to changing operational needs, and enhance efficiencies. These changes were made with a focus on maintaining the quality of services and prioritizing students.

Leaders will work closely with team members to set clear expectations and address any workload concerns.  It is expected that assigned duties will remain within a reasonable range of variance and would not necessitate a job evaluation (i.e. not meet the definition of significant change).

Given the University’s current financial challenges, no salary increases will be offered at this time; a full review of the Management and Professional (M&P) compensation framework is underway.

All non-union staff have been officially notified that their salaries have been frozen. 

No. Non-union staff salaries are frozen for 2025-26.

The M&P salary progression steps will continue for now.

While this phase of changes did not affect all non-union employees, further reviews and adjustments may occur as part of the University’s broader efforts to achieve financial sustainability.

With salaries and benefits comprising 78% of our operating budget and a projected $30 million shortfall for fiscal 2025-26, achieving financial sustainability inevitably affects employees. 

Actions taken on Nov. 26 represents approximately 10% of the cost-saving measures needed to address the projected $30 million deficit. Additional changes will be required as the University continues its efforts to ensure long-term financial sustainability.

The University is reviewing all aspects of operations and will continue to focus on identifying efficiencies and aligning resources with strategic priorities. Updates will be communicated transparently as decisions are made. 

Effective September 9, 2024, the restricted hiring is part of a broader budgetary strategy designed to ensure the University’s financial stability amid the current dynamic higher education landscape and significant financial challenges. The restrictions will remain in place for the foreseeable future.

The hiring restrictions apply to both new and replacement positions for all faculty and staff positions funded by the University’s operating budget and student ancillary fees, as well as positions within the ancillary fund.

There are exceptions due to enterprise risk profile. The top enterprise risks are cyber security, international enrolment and human resources capacity. The co-Chairs of the Provost Budget Committee have the ultimate responsibility for determining which positions are eligible for an exception because of their connection to these risks.

No new faculty or staff positions may be posted at this time. When positions become vacant, they may be filled through internal postings, attrition, streamlining, bumping process, or temporary hires. No external postings/hirings will be permitted.

The restrictions may be lifted when there are clear signs of long-term stability, such as meeting international enrolment targets outlined in the Strategic Enrolment Management plan.

The voluntary retirement program helps faculties and directorates achieve necessary base-budget reductions by allowing them to eliminate positions that are redundant, or to amalgamate positions.

There is a VCT program embedded in the WUFA collective agreement and available to faculty members below the normal retirement age. In 2024, the University and WUFA negotiated a special VCT offering for those members who had exceeded the normal retirement age. The window to apply for this special VCT is now closed. However, a variety of different early retirement programs continue to be explored.  

VCT opportunities were also made available to individuals in the following employee groups: Executives, Managerial and Professionals, and staff groups represented by Unifor. 

The last day of work for individuals who participated in the VCT program was October 31, 2024. 

Supervisors have been copied on the letters issued by Human Resources.

The tuition rate freeze continues for domestic undergraduates and graduates, which has been in place since 2019. Some domestic students, including students from outside of Ontario, and students in programs with tuition rates covered by the anomaly program, will see a small increase. International tuition for incoming students (that is, students who begin their studies starting in the Spring or Fall 2024, or Winter 2025 semesters) will see a modest increase to reflect actual cost increases and maintain financial stability. The International Student Tuition Guarantee ensures no change to tuition rates for international students throughout their degree program. To learn more about tuition and student fees, visit the Finance website.

Pensions are not affected when there is an operating budget deficit. The University’s pensions are financially sound.

We anticipate that the budget situation will impact all employee groups, potentially affecting certain services and programs within the Office of Research and Innovation Services. However, our research submissions and awards have experienced significant growth, resulting in a 25% increase in research funding  revenues—totaling $41 million. We expect this trend to continue into 2024/25. While these funds do not directly support central services, they do provide support for researchers' projects and programs.

The University values its generous donors and their important contributions. Donations are earmarked for specific initiatives, such as scholarships and bursaries, research chairs and centres, building projects and/or expansions. The operating budget is dependent on tuition revenue and government grants rather than donations.