University Budget Update: Your Input Matters

Earlier this year we shared with you that the University faced a $75 million operating budget deficit for 2024/2025. Despite decades of pragmatic and careful financial management, pressures on the entire post-secondary sector mean Waterloo is facing significant financial challenges now and in the years ahead.

This year we are managing the $75 million budget 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 only using one-time contributions from central funds and from faculties and academic support units.

Current financial challenges

The pressures affecting our budget do not show any signs of easing up. With fewer international students enrolling, a freeze on domestic tuition, no big increases in government grants, and rising salary and benefit costs, we need to keep finding ways to reduce spending to balance the budget.

Recently, it’s become clear that international student enrolment might continue to drop due to new government policies. We’ve also heard from government that domestic tuition and grant funding will stay frozen until at least 2027/2028. This means we won’t get extra tuition or government grants to cover rising costs. All universities in our province are facing similar challenges.

Steps taken so far

We know that many units have taken difficult steps to reduce spending to work within lower budgets. Thank you to all of you who have made a contribution to help us save money by working more efficiently and re-prioritizing your work. 

In addition to unit-level and central budget reductions, this Summer, more than seventy people joined our Voluntary Retirement Program for employees over 65 with at least 10 years of service. We continue to implement our limited hiring program to carefully review new and replacement job requests. These programs have been successful, but it is clear that we have more to do to address operating budget concerns this year and beyond.

Upcoming budget planning

We are approaching the mid-year point for our annual operating budget. Over the next month, the annual operating budget update will be going to the appropriate Governance Committees for review, and we will focus on planning for the 2025/2026 budget. We must keep looking for efficiencies and cost savings across the university.  

We know that achieving financial sustainability will require difficult decisions in the months and years ahead. We also know that across-the-board budgets cuts will not be an effective way to achieve the savings we need to make while also optimizing our ability to deliver on our key operational missions.

Your role and feedback

The Employee Engagement survey results indicated how important it is to keep you in the loop as we move through these processes. You can expect to hear detailed updates from us in the coming weeks to let you know how we are doing in achieving the spending reductions we need to make to deal with our operating budget deficit this year and what our plans for futures years are. We are committed to keeping you and the organizations that represent you engaged in the process to make sure you are aware of the situation.

We’re planning to hold another Budget Town Hall on November 18th. You’ll get an invitation to that event soon. Achieving a balanced budget will require support from all our leaders on campus, from front-line supervisors to the President’s office. We ask for your ideas, problem-solving skills, and patience.

We encourage you to share ideas with us. As we prepare our budget plan, we welcome your thoughts on how we can run the University more efficiently and save costs. Please share these ideas by emailing budget@uwaterloo.ca. We value your ideas, big and small, as we know that you can provide the insight and the experience we need to find creative solutions. We encourage you to be candid and honest as you share feedback with us.

The values at the University of Waterloo prepare us well for these difficult situations. We think differently, act with purpose, and work together. Our commitment to uphold the University of Waterloo’s leadership and excellence in education, scholarship, innovation, and entrepreneurship is unwavering.