MEMORIAL UNIVERSITY
Update on 2024-25 operating budget and information on preliminary 2025-26 budget

The university provided an update on Memorial's 2024-25 operating budget at the March 6 Board of Regents meeting.

The update was of Dec. 31, 2024, which means that it included actual revenues and expenditures up to Dec. 31 and forecasted revenues and expenditures from Jan. 1-March 31, 2025.  

This budget forecast includes an $8.89 million shortfall against budgeted tuition and student-related fee revenue. This is related to the 2024 federal government reduction in study permits issued to international students and a decline in enrolment. To ensure the university addresses the revenue shortfall, a combination of one-time savings and use of carryover funds will be used in 2024-25 to achieve a balanced budget.  "Carryover" refers to unused discretionary funds that can be used for planned one-time expenditures; it is not meant to fund ongoing operational expenditures.  

The Board also reviewed a preliminary 2025-26 operating budget. This is the first time Memorial's operating budget has been drafted in March versus a later date. There are many unknowns within the preliminary budget, including the amount of the provincial government grant; however, the forecast indicates that without change, the university will spend more money than it will bring in.   

Memorial and other Canadian universities are facing declining enrolment, aging infrastructure and reductions in government grants. Advocating for increased funding, continued careful planning, proactive decision-making and implementing strategic solutions are critical to navigating these financial constraints and sustaining effective university's operations. 

A new budget model working group has been established and a student recruitment committee has been formed to bolster enrolment for the 2025-26 academic year.  

At the December 2024 meeting, the Board of Regents approved a limited hiring program and restrictions on the use of carryover. These measures are necessary and effective tools for reframing conversations about needs, intensifying oversight of hiring and curbing spending in general.  

At the March 6 meeting, the Board approved refinements to the limited hiring program to streamline the process while maintaining appropriate oversight. The relevant academic or administrative leader will make decisions about short-term (two years or less) contractual hires, rather than the President's Executive Council (PEC). The provost and vice-president (academic), the vice-president (Marine Institute) and the vice-president (Grenfell Campus) will make academic appointments within their respective portfolio. PEC will continue to maintain financial oversight by reviewing a weekly summary report of all short-term contractual hires, approvals for tenure-track faculty positions and three-year regular term appointments. The limited hiring program with these refinements will be re-evaluated by July 2025. 

The restriction on the use of carryover will continue until the end of the 2025-26 fiscal year and the relevant sections of the University Operating Budget Policy (sections 2.0 and 5.0) are suspended until a revised budget policy is developed and approved.  

The process of calculating carryover by unit remains the same as previous years. However, the approach for carryover spending has been changed and will include weekly PEC oversight. 

Units with existing (submitted and started before Dec. 5, 2024) carryover "project" funding can request to keep the amount of carryover required to fund the project as planned. No new projects will be considered.  

Units with cumulative deficits in total or at the sub-unit level will be required to provide actionable and attainable deficit reduction plans to their respective vice-president by June 30, 2025.  

Conversations are ongoing about the budget throughout the university. This includes a Senate presentation in February and Senior Leadership Council meetings. The provost and vice-president (academic) is leading deans through a series of planning sessions. Vice-presidents have been discussing with their leadership teams the actions required to address budget reductions, as well as the required investments to increase efficiency. This work will continue, with regular updates to the university community, as work on the budget for 2025-26 continues.