UW battles $75M deficit; report calls for increase in provincial funding

Ontario universities and colleges face financial uncertainty without the provincial government’s help according to a new report from the Council of Ontario Universities (COU).

According to the report, 100,000 high school students are at risk of not getting into the post-secondary of their choice, even if they’re fully qualified, because of the current provincial funding cap on domestic students.

COU is calling on the provincial government to increase per-student operating grants and lift the funding cap on domestic students. The report adds that Ontario has the lowest per-student funding in Canada, and has experienced 15 years of no per-student funding increases.

The organization added that the number of Ontario high school students applying to universities in the province increased by 12 per cent over the last four years, and the number could increase to 18 per cent by the year 2030.

The University of Waterloo (UW) is facing financial uncertainty as it reported a $75 million deficit for the 2024/2025 financial year.

Vivek Goel, the president of the UW, shared a statement on the new measures the university is taking to aid financial sustainability and to tackle the deficit.

According to Goel, the university has reduced unit-level spending by $42 million, and is dipping into reserves to make up for the other $33 million of the deficit.

“It is not sustainable to rely on such one-time funds to meet ongoing budget deficits,” said Goel.

“The freeze on domestic tuition, years of limited government funding, lower international enrolment, inflation, and rising salary costs mean we expect another similar deficit in the next financial year.”

UW also implemented a hiring freeze for faculty and staff positions as of Monday.