Budget sustainability
Meeting the moment Planning for the future in uncertain times
Post-secondary institutions across the country are having to think hard about their operations amid declining enrolment, particularly international student enrolment. At TRU, we view this as an opportunity to meet the moment, consider the TRU we want to be in the face of real change, real financial challenges. We look forward to our TRU community embracing this opportunity with us and will update this page regularly.
Enrolment context
Federal policy changes have capped the number of international students coming into Canada and changed entry and post-graduate work permit requirements. As a result, international student interest in Canada is dropping sharply.
TRU will start feeling this impact of fewer new international students in the winter term (January 2025).
Additionally, interest from domestic students has dropped in recent years, and there is declining demand for in-person courses.
What it means for TRU
A sharp decline in international student interest means TRU will not be able to achieve a stable on-campus population of 4,000 international students for the next several years, a goal of the university’s Strategic Enrolment Management Plan. Given the current context, TRU anticipates international student numbers to be several hundred less than 4,000.
Some programs will be impacted more than others due to this decline in enrolment, including our post-baccalaureate diplomas.
Such a significant change in international student interest means a significant loss in tuition revenues, and budget deficits if TRU does nothing.
Meeting the moment What TRU can do
This is a time for TRU to lean into and lead the challenge that faces us. Rather than focusing only on restraint, we want to set TRU up for future stability. This means exploring and developing new programs, as well as rethinking and redeveloping existing ones. This will help us attract new students, making up for some of the losses in revenue. The exciting progress towards developing a Wildfire Studies program at TRU is an example.
We are also revamping domestic and international recruitment strategies.
These on their own, however, won’t be enough. It’s important we also manage growth in other areas of our university operations. TRU will monitor this closely through the course of the budget year.
University budget 101
TRU’s annual operating budget supports the academic mission – think classrooms, labs, library, academic and wellness supports, and the people in them.
Universities in BC are required to balance their budgets.
Primary revenues sources are
- Student tuition and fees – fees are collected from domestic and international students
- Provincial government grants – TRU receives funds from the province for domestic undergraduate courses, as well as trades programs
- Federal government grants – these funds are typically for research activities
- Ancillary services – these encompass fees for student housing, food services and parking
- Other – various sources of revenue including donations and investment income
Information is based on financial projections as of June 30 (first quarter of fiscal year 2024-25) and subject to change.
Primary operating costs are
- Salaries and benefits for faculty and staff
- Building and equipment maintenance
- Professional fees and contracted services
- Operational supplies
- Travel
- Other
Information is based on financial projections as of June 30 (first quarter of fiscal year 2024-25) and subject to change.
Information is based on financial projections as of June 30 (first quarter of fiscal year 2024-25) and subject to change.
Budget 101 FAQs
Operating a university is no different than managing one’s own personal finances. The university needs to consider its day-to-day operations (operating budget), what it needs for infrastructure such as buildings (capital budget) and what it needs to set aside for emergencies (reserve or contingency fund).
The following are general FAQs regarding TRU’s budget.
What is TRU’s budget?
TRU’s budget consists of revenues from various sources (e.g., grants, tuition, fees, ancillary operations) and is expected to pay for the university’s annual expenses. The university’s expenses include compensation (faculty and staff salaries and benefits) and non-compensation (all other expenditures required to deliver programs and operate the university including classroom supplies, utilities, security, etc.) Compensation represents the largest expenditure, at about 64 percent of all expenditures (including capital, research and specific purpose funding) based on the last 10 years.
How much does it cost to run the university?
This number changes over time and depends on numerous factors including inflation, collective agreement increases, and how many programs and services TRU has in place. The 2024-25 budget as approved by the Board of Governors in March 2024 estimated expenditures at approximately $305 million.
How does TRU fund its operations?
There are two primary sources of revenue: student fees (tuition) and government grants. Together, these represent about 86 per cent of TRU’s funding sources to cover day-to-day operations (with international revenues accounting for 34 per cent of the 86 per cent). With a significant increase in international enrolment since 2018, student tuition has exceeded government grant revenue as a proportion of total revenues. However, with a sharp decline expected in international student numbers starting in Winter 2025, this proportion will change. Provincial government grant funding for TRU has remained stable.
How does student enrolment affect TRU’s operating budget?
The number of students attending TRU has a direct link on TRU’s annual budget..
While, domestic student education is partially subsidized by the province, international students pay for the full cost of their education.
Any reduction in enrolment numbers has an impact on tuition and fees not just in the first year it happens, but in the following years; essentially the time it takes a student to complete a program at TRU.
Can TRU use money from its capital fund to support the operating budget?
It takes years to plan for and secure money for capital projects. TRU has benefitted from having a robust plan for capital funds as seen through significant renovation projects and new buildings, including the new Indigenous Education Centre and the Low Carbon District Energy System which are completely funded by TRU’s historic surpluses. It is important TRU preserve capital dollars for their intended purposes.
Over the past two years, because of challenges within the post-secondary sector, that provincial government has permitted institutions with surpluses to restrict a portion of their grant prior to year end to deal with deficits in future years.When does TRU make decisions if it is concerned about budget shortfalls?
TRU prepares a 5-year budget as part of its annual budget cycle; however, budgeting and budget decision making is an ongoing process. This cycle includes a careful look at revenues and expenditures each quarter and recasting those 5-year projections, which helps inform decisions. Such decisions include how we manage vacant positions, whether contracts should be renewed, or renewed under different terms, and also how we may wish to strategically invest funds in reserve to support TRU’s academic mission.
Has TRU implemented a hiring freeze?
TRU has initiated strategic hiring restrictions to ensure financial resilience amid a significant decline in international enrolments caused by recent federal policy changes. This action allows us to conserve resources as we evaluate the full impact of enrolment changes on our 2025-26 budget. We will continue to prioritize hiring for essential and high-growth areas that support core academic and operational needs.
How are budget concerns affecting plans for new capital projects at TRU?
TRU has adjusted its capital spending by reducing funding for certain internal projects by $5 million to build reserves and support future financial stability. Key projects that align with TRU’s long-term goals, such as the Indigenous Education Centre and the Low-Carbon District Energy System, are still moving forward with previously secured funding.
How are federal immigration policy changes impacting TRU’s budget and international enrolments?
Recent federal policy changes, including caps on international student permits and restrictions on post-graduate work permits, have led to a substantial decrease in international student enrolments at TRU for Fall 2024. We anticipate a further drop in new post-baccalaureate students by January 2025. As international tuition represents a significant portion of our revenue, these changes will impact TRU’s budget in the coming years, requiring us to implement thoughtful, strategic adjustments to ensure continued financial stability.
What measures is TRU taking to address the budget impacts of declining international enrolment?
TRU is proactively building financial reserves, implementing targeted hiring restrictions and adjusting some capital spending to prepare for potential revenue shortfalls. We are also evaluating various budget scenarios to determine potentials for savings with the least disruption to core academic functions. These measures allow us to remain adaptable as we work through the long-term implications of these enrolment changes.
How can TRU faculty and staff provide feedback or ideas related to the budget process?
TRU is committed to transparent, two-way communication regarding budget decisions. Faculty and staff can share feedback or ideas by emailing [email protected]. This channel allows our community to contribute directly to the budget discussion, helping us make informed, collaborative decisions that support TRU’s vision, mission and values.
What new programs or initiatives is TRU developing to support long-term enrolment and financial sustainability?
To counter the effects of enrolment declines, TRU is preparing to invest strategically in new academic programs that meet student needs and government policy requirements or directives, ensuring TRU remains competitive and attractive to prospective domestic and international students.
