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.