Ontario schools facing budget deficits

Despite new funds, third of universities remain in the red

- KRISTIN RUSHOWY

Eight of Ontario’s universities — or one-third — are still in the red despite the province’s recent boost in funding, and next year about onehalf expect to struggle to balance the books, according to a new analysis.

The Council of Ontario Universities — which represents the province’s 23 publicly assisted schools — says the Ford government’s funding “falls far short of what the sector needs to be financially sustainable.”

Even after accounting “for the $100 million in STEM funding for 2023-24 and the one-time funding of $700 million over three years for both colleges and universities, at least eight universities are still forecasting operating deficits in 2023-24 for a combined deficit of $152 million, and there are at least 12 universities projecting operating deficits in 2024-25 for a combined total of $293 million,” the council said.

Universities are also expected to be hit with the impact of new federal limits on international students when they officially come into play — students who pay as much as five times the tuition of domestic students. 

“We are looking for the Ontario budget to follow through on the rest of the blue-ribbon panel’s recommendations,” said Steve Orsini, president and CEO of the council, referring to the government’s own expert panel that recommended an immediate 10 per cent increase in funding grants and a five per cent boost in tuition fees this fall, and overall about $2.5 billion in spending over the next three years.

Instead, the government announced about $1 billion in onetime funding.