Operating Budget FAQs

Early projections indicated a revenue-expenditure gap of between $30M and $40M.

External factors beyond our control (declining international enrolment, Canada’s global reputation, IRCC caps, etc.) are having a significant negative effect on Canada’s universities, including the University of Windsor. The University projected a shortfall of at least $14M for 2024/25, with a flow-through effect into fiscal 2025/26. Additionally, an existing structural base budget deficit of $2.8M remained, which, coupled with a tuition revenue shortfall of at least $30M and increased additional costs, meant the University was facing a projected deficit of more than $40M for fiscal 2025/26. It should be noted that most Ontario universities have operating budget deficits.

Opportunities to improve efficiency and reduce costs were identified across campus, prioritizing our academic mission and the student experience. This included exploring resource optimization for teaching and learning, centralizing certain campus services, streamlining some administrative support, position restructuring and eliminations, and title and salary adjustments.

Facing a projected $32M tuition revenue decline for the 2025/26 fiscal year over the prior year’s approved budget, the University took internal actions to reduce the base deficit to $9M, then applied one-time funding from the Ministry of Colleges, Universities, Research Excellence, and Securities (MCURES) to bring the final base deficit to a more manageable $4.6M.

The University optimized resources, reduced costs, and prioritized strategic funding. This included difficult decisions such as staffing reductions, cancellation of vacant positions, salary and hiring freezes, and operational restructuring—all while maintaining our core mission and strategic priorities and commitments.

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.

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.

Various initiatives continue to be considered by the University’s Operational Excellence Committee. As decisions are made, affected staff/faculties/units will be informed, and updates will be communicated. All changes will align with collective agreements, and transition support and resources will be provided.

Ideas for reducing costs, improving efficiency, and redesigning processes came from University leaders, deans, faculties, external consultants, and staff from across campus. All initiatives were reviewed by the Operational Excellence Committee, with the President having final approval.

As part of its budget balancing efforts, the University engaged several external consultants to review operations and help identify new ideas for operational efficiency and revenue generation, as they provide an objective perspective. This is a common practice in the higher education sector, as well as others. The Ministry of Colleges, Universities, Research Excellence and Security (MCURES) has, through its Efficiency and Accountability Fund (2024/25), provided funding to Ontario colleges and universities to work with external consultants. UWindsor was successful in receiving funding from this envelope. However, all decisions were made by UWindsor administrators with a focus on aligning with the institution's core mission, strategic priorities, and long-term viability.