For many businesses and organizations, the COVID-19 pandemic has shone a spotlight on fiscal vulnerabilities. In Grebel’s case, we can clearly see that having a full residence is critical not only for a vibrant program but also for a balanced budget. With the residence closed in the spring term of 2020 and only operating with one student per room in fall and winter terms, residence revenue was slashed. “We have also lost ancillary income because two seasons of summer conferences were wiped out, as well as meeting room rentals,” reported Director of Operations Paul Penner. The overall reduction in revenue was $1.7m in 2020-21. Because Grebel receives partial funding from the University of Waterloo, we did not qualify for the Canada Emergency Wage Subsidy program
Tuition makes up 30% of our revenue, and there have been strong enrolments this year. However, because of the 10% tuition cut followed by a freeze on tuition rates, this revenue source has not increased.
Grebel faculty and staff are feeling the impact directly by a salary freeze, and 18 individuals were on temporary layoff when the residence was closed for spring 2020. “With these savings and other operating cost reductions, the anticipated deficit at the end of the 2020-21 fiscal year is close to $100,000,” noted Director of Finance Sara Cressman.
The Grebel Fund has always played an important role in the operating budget, as it funds specialized programs that don’t receive funding from tuition or other UWaterloo grants. It also adds to the pool of student awards. We’ve been pleased by the response of our supporters. Given our budget crisis, we increased our Grebel Fund goal by almost 6% to $360,000 in the 2020-21 fiscal year. I’m pleased to report that at the end of April we raised over $400,000 for the Grebel Fund. Exceeding this goal reduces our deficit and gives momentum for the next fiscal year, which will also be a challenge.
We are grateful to our donors who stepped up to support us during these tumultuous times.
