Budget updates

Overview

Concordia continues to face significant financial difficulties. However, a clear framework with achievable targets has been developed to ensure the university meets its financial obligations while maintaining its teaching, research and innovation strengths.

Progress on recovery plan

• 2023-24 fiscal year: The approved deficit of $29.1 million was achieved.
• 2024-25 fiscal year: The university is on track to meet the approved deficit of $34.5 million.
• 2025-26 fiscal year: The university must close with a deficit of no more than $31.6 million.

Despite this progress, a starting deficit of $79.4 million is forecasted for the 2025-26 fiscal year, due to:

• The carryover of the $34.5 million deficit from the 2024-25 fiscal year.
• An additional shortfall of $44.9 million, driven by factors such as declining enrolment, changes to government funding formulas, salary increases and rising service contract costs.

Failure to meet deficit goals could result in a downgrade of Concordia’s credit rating and increased borrowing costs.

Results of community efforts so far

Concordia has already taken steps to address the financial situation. These efforts include:

Payroll management

• Staff hiring freeze and strategic attrition: Approximately 80 positions have been closed since May 2024, with more than 180 roles unfilled.
• Faculty hiring has been paused for two years, with some strategic recruitment planned for 2025-26 to address key areas.

Cost reduction initiatives

• Reduction or elimination of non-essential expenditures (e.g., travel, external contractors).
• Proactive management of vacation time and other credits.
• Reductions in borrowing interest costs and lower management fees for university benefits.

Operational efficiencies

• Streamlining software and IT systems.
• Adjusting building services (e.g., HVAC systems, cleaning, security).
• Securing grants for energy savings.

Increased revenue

• Self-funded units like Residences, Parking and Recreation and Athletics have contributed additional funds.
• Improved returns on university investments.

Key focus areas for 2025-26

Maintaining the hiring freeze

• The hiring freeze will remain in place to control payroll growth, the university's largest expense.
• Strategic faculty recruitment will occur to ensure sustainability in key teaching and research areas.

Stabilizing enrolment

• Concordia experienced a decline of 1,400 students (3.4 per cent) in the 2024-25 fiscal year, driven by changes in government policies.
• To offset this, the university aims to recruit an additional 1,000 students for the 2025-26 academic year, requiring collective effort from all areas of the university.

Path to a balanced budget

Deficit reduction plan

• Total payroll savings of $15 million in the 2023-24 fiscal year.
• An additional $12 million in savings is expected for the 2025-26 fiscal year through the hiring freeze.

Additional savings needed

• By recruiting 1,000 students and generating payroll savings, the forecasted deficit will be reduced to $53.4 million, down from the starting $79.4 million.
• The university must still find an additional $21.8 million in savings or increased revenue to meet the mandated deficit of $31.6 million.

Flexibility and future projections

Adapting to changes

• Since planning is based on partial information, including uncertainty about government grants and tuition increases, projections may need to be adjusted in the spring.
• The community’s flexibility during this process is appreciated.

Ongoing dialogue

• All members of the Concordia community are invited to engage during regular budget conversations in January.
• Feedback and input from the community are crucial as the university works together to navigate these challenges.

Messages to the community

More information

Annual operating budgets

• 2022-23 fiscal year
• 2021-22 fiscal year
• 2020-21 fiscal year
• 2019-20 fiscal year
• 2018-19 fiscal year
• 2017-18 fiscal year
• 2016-17 fiscal year