Message from the Provost: Spring Update on University Budget
March 6, 2024
This message has been sent on behalf of Dilson Rassier, provost and chief budget officer, to all faculty and staff. A similar message will be sent to all 2024 spring term students.
Hello everyone,
As promised in the faculty and staff town hall in January, I am writing to provide an update on the current budget situation as we prepare to close out the fiscal year.
SFU is one of Canada’s leading research universities, and is dedicated to supporting students in their learning journey and scholars with their research and teaching. SFU has a plan to continue growing, providing the best programs for our students and contributing significantly to academic research and knowledge. However, along with other prominent universities in Canada, SFU is facing budget challenges. Based on our latest forecasts, the university is estimating an annual deficit totaling $20.9 million for the 2023/24 fiscal year, with that number rising to an estimated $49.9 million during the 24/25 fiscal year.
We have many budget pressures. Declining international student enrollment has had an impact on our financial situation, and overall costs have increased at a higher rate than our revenues and funding.
The executive team’s highest priority is to find ways to address this shortfall. The university is taking steps to reduce expenses and to find new approaches to strengthen our revenue streams.
Our actions to-date have made a positive impact, and I thank you for your efforts and suggestions over these last several months. Further action to address our budget pressures is needed.
In order to step into our full potential, while also addressing our budget challenges and establishing a sustainable model, we must make changes to our organizational operations. For an organization as strong and with as much potential as SFU, we see this moment as part of an opportunity for change.
The university has made the decision to restructure certain areas of its operations with an aim to increase efficiency and reduce duplication. As part of this work, we will also review service levels and identify work that is no longer required. During this restructuring, some administrative job losses can be expected. We are also extending the hiring freeze into the 24/25 fiscal year.
We are working hard and doing all we can to support employees through this process with care and compassion while upholding our commitments to equity. We are committed to working with unions and employee groups to craft adjustment plans that consider such options as a voluntary separation program, as well as ensuring appropriate packages and supports. More information will be available in the coming weeks.
We will do all we can to support people who will be impacted by these changes, however, we acknowledge how difficult this will be. We also recognize that this news may create questions or uncertainty within our community. We are committed to providing more information as soon as we are able to share it.
SFU has always been led by our values, and we will continue to make decisions from that place. We want to ensure affordability for students as we navigate this challenging time. Our plans will minimize any impact on teaching, learning and research. We have also made commitments to adhere to our values, such as becoming a living wage employer and extending more supports to graduate students, and we will honour those commitments.
We want to remind you that many forms of support are available. In addition to the well-being webpage where you can access mental health and wellness supports, we encourage you to have a conversation with your supervisor or dean about this news and what this means for your team.
The next few months will be difficult for the university, but we are confident that SFU will be stronger as we move forward.
Sincerely,
Dilson Rassier, Ph.D.
Provost and Vice-President Academic
Simon Fraser University