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���ϳԹ���Դ Board of Trustees has approved the 2026-27 operating budget, which includes projections for the following two years and signals a gradual improvement in the university’s financial position while also showing the need for continued budget management.

The operating budget is structurally balanced but includes a projected deficit of $8.5 million in 2026-27, followed by deficits of $2.3 million and $2.0 million in the subsequent two years. The improved financial outlook is a result of recent funding by the province which includes two per cent tuition increases for domestic Ontario students and operating funding growth of $41 million, in addition to the $20.4 million in grant funding first received in 2025-26.  

“We are very encouraged by the improving outlook and thankful for the province’s recent funding, as well as the significant collective efforts across the ���ϳԹ���Դ community that have helped greatly to put the university on a stronger financial footing,” says Matthew Evans, Provost and Vice-Principal (Academic). “At the same time, continued focus on financial performance will be essential to sustaining investment in our academic and research mission and advancing ���ϳԹ���Դ long-term future as set out in the Bicentennial Vision.”

Despite the increase in government funding, rising costs are expected to outpace revenue growth. Annual compensation increases of about four per cent (approximately $20 million) and inflationary pressures are expected to absorb much of the funding gains within two years, requiring continued focus on cost control and budget management.
 

Operating fund projected results for 2025/26

���ϳԹ���Դ also released its final operating fund projection for the 2025-26 fiscal year, showing a $2.3 million surplus compared to a budgeted deficit of $26.4 million. Final financial results will be confirmed in the fall with the release of the university’s audited financial statements.

Budgets are based on assumptions set at the start of the year and are adjusted as actual results emerge. The improved outlook for 2025-26 reflects a combination of budget-balancing measures, additional provincial funding, and the deferral of some planned spending.

“Our results this year reflect a combination of external funding changes, internal adjustments, and careful financial stewardship across the institution,” says Donna Janiec, Vice-Principal (Finance and Administration). “We saw positive impacts from targeted provincial investments, as well as from tighter management of discretionary and project spending. It is important to recognize that some of these improvements are timing-related, and we will need to carefully manage pressures as they evolve.”

Provincial funding contributed an additional $20.4 million in 2025-26, including targeted investments in STEM and expansion funding in education, medicine, and nursing. Lower-than-planned spending in shared services and central units, driven by cost containment and deferred IT and facility projects, also strengthened the year-end position, though these are not expected to be permanent reductions.

In this context, international credit rating agencies S&P Global Ratings and DBRS Limited (Morningstar DBRS) reaffirmed ���ϳԹ���Դ strong ratings, citing student demand, academic reputation, effective financial management, and expected improvements in operating revenues.

In support of future budgeting activities, ���ϳԹ���Դ has also launched a consultative review of its university-wide budget model. The review explores changes that would help to align resources with academic and research priorities and support the goals of the Bicentennial Vision.

A Budget Information Forum will be held early next month, hosted by Principal and Vice-Chancellor Patrick Deane, Provost Evans, and Vice-Principal Janiec. Open to all members of the ���ϳԹ���Դ community, this virtual forum will provide an update on the university’s overall financial situation and provide an opportunity for questions. It is scheduled for June 1 from 1-2 pm and more details will follow in the coming weeks.