Concordia University in Canada Tells Departments to Cut Budgets by 7.8 Percent
“In a memo to staff Thursday, the university said its deficit is currently $35 million.”
Based on what we have seen happen at Concordia University, this is good news.
The Montreal Gazette reports:
Concordia University tells departments to slash budgets by 7.8 per cent
Facing a growing deficit and the prospect of debilitating tuition changes, Concordia University is freezing executive salaries, slashing its overall budget by 7.8 per cent and may suspend infrastructure projects.
In a memo to staff Thursday, the university said its deficit is currently $35 million. That’s 80 per cent more than the $19.4-million deficit anticipated when its budget was approved in May.
The university, which has a $613-million budget in 2023-24, blamed inflation and declining revenue caused by falling enrolment.
“Due to this drop in revenue, Concordia cannot meet its core operating costs, which consist mostly of salaries and the day-to-day operations that support teaching, research and student life,” according to the memo, obtained by the Montreal Gazette.
“Inflation, which affects the cost of goods and services, as well as rising interest rates, employee benefits and salary costs, have also had a significant impact on the university’s expenses.”
The memo was signed by Denis Cossette, Concordia’s chief financial officer, and Anne Whitelaw, the university’s provost.
Concordia says it’s freezing the salaries of president Graham Carr and his executive team, and continuing a hiring freeze on non-academic staff, “except for mission-critical positions,” until the end of the fiscal year.
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