Ontario universities face financial crisis as deficits mount

Some universities in Ontario are racking up multimillion-dollar deficits, including institutions in Waterloo Region, writes Jeff Pickel for CTV News. Experts said the provincial government holds many of the answers, but with an election just 16 days away, it’s unclear whether the issue will get much political attention.

The University of Waterloo is heading into 2025 with a massive operating deficit. Before making significant cuts, it was looking at a CA$75 million (US$52.4 million) shortfall. The school said it was able to reduce the impact by trimming CA$42 million from facilities and academic support units. It also implemented a voluntary retirement programme and a hiring freeze to try to stabilise its budget.

The crisis isn’t limited to Waterloo Region, with universities across Ontario also feel the financial squeeze. Alex Usher, from Higher Education Strategy Associates, said the crisis is largely the result of a long-standing problem. “It was the underfunding that led to the dependence on international students, and it was the removal of international students that caused the immediate crisis,” he explained. Usher also noted the federal cap on international student visas, intended to ease the housing crisis, has further strained university budgets.
Full report on the CTV News site