Collaboration in times of current budget challenges
At Waterloo, we pride ourselves on identifying and solving big, complex challenges facing humanity and our planet. This commitment requires us to be unconventional in our approach, and to work with co-ordination and collaboration across our institution – not only in our research and teaching, but in our fiscal planning.
Despite decades of pragmatic and careful financial management, external pressures on the entire post-secondary sector mean Waterloo is facing significant financial challenges now and in the years ahead. With fewer international students enrolling, a freeze on domestic tuition, restricted government funding, and inflationary pressures, we need to keep finding ways to reduce spending to balance the budget.
Balancing our budget will take all of us. We need to find ways to co-ordinate, collaborate, and co-create to build an empowered organizational culture with an emphasis on accountability, nimbleness, and impact.
For the 2024/2025 year, the University faces a $75 million operating budget deficit. Our approach to balancing the budget includes a broad spectrum of specific measures to approach constraints responsibly. This plan ensures that we continue to support the University’s academic and research mission, and other key priorities, while under ongoing budgetary pressures.
Steps taken so far
Reducing ongoing spending
This year, we are managing the deficit by reducing ongoing spending by $42 million centrally, and in our faculties and academic support units. The remainder of the deficit is being covered in-year using one-time contributions from central funds and from faculties and academic support units.
We are constantly looking for opportunities for efficiency. For example, the Board of Governors recently approved changes to employee benefits that could save around $500,000 annually without reducing benefits. We continue to explore other actions, such as reviewing our vehicle fleet across all functions of the University to realize savings and efficiencies while maintaining essential service levels.
Organizational reviews
We are currently completing a series of organizational reviews to evaluate, reorganize, and improve collaboration of various units. These reviews will make recommendations regarding the existing organizational structures of the units and activities, and on the alignment of the work, staffing, processes, and practices.
Operational reviews
As part of this ongoing work to improve our operations, we have commissioned reviews of the Associate Vice-President, Academic, and the Associate Vice-President, Graduate Studies and Postdoctoral Affairs portfolios. A review of Plant Operations is also underway.
Voluntary retirement program
More than 70 people joined our voluntary retirement program for employees over 65 with at least 10 years of service. At this time, we don’t anticipate running additional voluntary retirement programs.
Limited hiring program
Our limited hiring program, which focused on realigning and finding efficiencies instead of automatically hiring when roles become vacant, has now transitioned to a hiring freeze.
Hiring freeze
Effective November 18, 2024, we transitioned to a hiring freeze. The University’s circumstances demand that only rare exceptions to the hiring freeze be considered for faculty and staff positions after following a stringent review process. There will continue to be careful review of required positions for ancillary services and positions funded through student fees.
Special Advisor to the Provost on Strategic Enrolment Management
We must also continue to focus on activities that create a resilient, co-ordinated, and people-centred design of organizational operations and planning. The appointment of Professor Ian VanderBurgh as Special Advisor to the Provost on Strategic Enrolment Management is crucial for supporting integrated planning to promote coordination and alignment for strategic success of our students and the institution.
Upcoming budget planning
Achieving financial sustainability will require difficult decisions in the months and years ahead. Across-the-board budgets cuts are not an effective way to achieve savings; we must be strategic in how we optimize our ability to deliver on our key operational missions.
We will all need to work together in creative ways to change the way that we work. Leaders and their teams must have discussions about work priorities, and evaluate what work is being done and the rationale for it.
Your feedback is important
We are committed to keeping you and the organizations that represent you informed and engaged throughout the budgetary process. If you have feedback and ideas that you would like to share, please email budget@uwaterloo.ca.
Thank you in advance for your commitment to the University, and for thinking differently, acting with purpose, and working together as we navigate these operating budget challenges.