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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.

Ideas for reducing costs, improving efficiency, and redesigning processes are coming from University leaders, deans, faculties, external consultants, and community members across campus.

The Ministry of Colleges and Universities has, through its Efficiency and Accountability Fund (2024/25), agreed to provide funding to Ontario Colleges and Universities to work with consultants on identifying operational efficiencies. UWindsor was successful in receiving funding from this envelope and is fully utilizing this funding opportunity to generate new ideas for operational efficiency and revenue generation.

The OEC, made up of leaders from across campus, develops the conceptual ideas received from various University stakeholders into detailed cost-saving initiatives and submits them for presidential approval.

OEC Implementation Leaders will refine and finalize plans and manage impacts and project risks. The OEC’s Rapid Response Team will then work with Deans, institutional leaders, Human Resources, and other stakeholders to help them implement the new initiatives.

The Rapid Response Team will collaborate directly with faculties and units affected by approved initiatives. Their support may include designing implementation plans, serving as a liaison between institutional units, providing progress updates, and developing communication and change management strategies to ensure smooth transitions and alignment with stakeholders.

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.