Thompson Rivers University will have to cut over $20 million in spending to balance next year's budget as international enrolment plummets, and further reductions will likely be made in future years.
Following an announcement last January that the for two years, TRU is now facing choppy waters afters its international enrolment from last year and is expected to continue.
According to a report presented to the university’s board of governors last week, TRU is planning to slash spending by 7.4 per cent to balance next year’s budget.
Budget cuts include $7 million to $10 million by eliminating 70 to 75 vacant positions, a one per cent non-salary reduction will account for $2.7 million, and further “metric-based and other targeted non-compensation reductions" will cut another $6 million to $10 million.
The university says it will naturally find reductions as enrolment falls, including $2 million to $5 million through a reduction of sessional and university instructor teaching loads. Agent commissions for its international students are expected to decrease by a minimum of $1.5 million.
The report states around $700,000 in savings will occur once its Westgate residence closes after the winter semester and around $800,000 will be found through credit card convenience fees introduced earlier this year.
The university said in a notice sent out last month and an early retirement incentive plan is not being considered.
Beefing up reserves
TRU says it is expecting to end this fiscal year with a $5 million surplus and is planning to restrict $9.5 million in operating funds.
“It's not sitting in a bank account somewhere. It's allocated to address the need to build up a reserve, and also to make those initial investments,” provost Gillian Balfour told the board.
“Because we anticipate not being able to make those kinds of investments in the years to come.”
Balfour said about $5 million in investments is being used to hire faculty for TRU's Wildfire initiative, building out student services, recruitment strategies and a new student information system.
“All the things that you need in order to create a really responsive recruitment system for the institution,” she said.
Balfour said she is working with school deans to find where new programs can be created quickly. Degree programs can take upwards of 24 months to receive approval while certificate and diploma programs require significantly less time.
She said she was also working with TRU’s open learning division to build capacity and responsiveness. An uptick in online international enrolment has been seen across universities.
Matt Milovick, vice-president of administration and finance, said the goal is to ensure TRU has adequate reserves to handle “an even rainier day.”
Capital spending pulled back
TRU was put in place in October — although hiring is still happening in “strategically important” areas.
Milovick said the university's $22 million Indigenous Education Centre and $40 million Low Carbon District Energy System are still moving forward.
The university’s portion of split between TRU and the City of Kamloops has been deferred to future years.
“That's still with the city, but that is still on the books,” Milovick said. “So not a ton of capital, other than really routine maintenance as we need to.”
Going to get harder
After next year’s budget reductions, TRU is projecting a $1.3 million budget surplus in the 2025-26 fiscal year.
“This is the easiest part of it. It gets a lot more difficult going forward,” Milovick said.
“It really comes down to the choices and how we define ourselves as an institution and what programs we value and need to create.”
TRU is expecting it will need to reduce expenditures by an average of 5 per cent each year from 2026-27 to 2028-29.
Next year's projections show a $14 million drop in international tuition and fees from the current 2024-25 forecast, from $95 million to $81 million. International course enrolments are projected to decline by around 7,000 in that same time frame, while domestic course enrolments are projected to remain flat.
Milovick said the university typically approves its budget at the end of the fiscal year in March, but this year may take longer.
“We may want to take some more time to make sure that we're getting this right,” he said.
