Thompson Rivers University is battening down the hatches and looking at what can be thrown amid a financial crisis brought about by a dramatic drop in international students.
Following an that the number of international student permits would be cut across Canada and capped for two years, TRU is now facing choppy waters afters its international enrolment dropped by 400 this fall from last year.
In a notice sent out to TRU faculty and staff on Friday, provost and VP academic Gillian Balfour and VP of administration and finance Matt Milovick said international enrolment is expected to continue falling until new programs are created — which will take at least three years.
Budget cuts are needed and the process by which TRU determines what to cut will be set in the coming weeks.
“In some cases, we may also need to consider reducing existing positions. TRU is not considering an early retirement incentive plan for any employee group,” the notice reads.
The notice says unfilled vacancies will be reviewed as well to determined which can remain unfilled. There are around 75 unfilled positions at TRU.
Travel expenses will be reduced by 15 per cent, and a one per cent non-compensation reduction across department budgets will be implemented shortly.
The notice says TRU will examine opportunities for new revenue.
Budgets need to be balanced
The university is forecasting a budget surplus of $14 million for 2024-25, $9 million of which will go to operating reserves for future years and $5 million will go to strategic investments and select capital projects.
This will be the last year of surplus budgets for some time.
The notice says “significant, immediate action” is required to balance the 2025-26 budget, which will need to be slashed by seven per cent to eight per cent. Further reductions are expected for the next three years.
“This is based on current modelling and could change if external factors change,” the notice said.
The university will continue to invest in “high-priority strategic projects,” including or and its TRU Wildfire initiative, which the notice called “critical” to its future growth. as early as 2025.
While TRU budgeted for a $5.5 million surplus in the first quarter of its financial forecast, the and remain hundreds of students below its target of 4,000 for several years.
TRU put an in response to an and 75 per cent in post-baccalaureate international students by January.
Confident in face of crisis
The notice attributes declining enrolment to the permit cap as well as the damage to Canada’s reputation as a place to study.
International students at TRU pay approximately $19,000 in first-year tuition, compared to $4,487 for domestic students. The university has budgeted for $91 million in international tuition for the 2024-25 school year — representing approximately 26 per cent of an .
“These next years will present TRU with unprecedented challenges, similar to what most Canadian universities now face,” the notice says.
“We are confident, however, that with proactive action, strategic decision-making, and pan-institutional collaboration, TRU can emerge from this financial crisis stronger and better able to serve our societally important mission.”
