University of Windsor reduces operating deficit by $33 million

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A series of painful and controversial cuts have helped the University of Windsor reduce a monumental budget deficit by $33 million.

UWindsor’s 2025/2026 operating budget, released this week, forecasts a $9-million shortfall. At one point, the university was facing a projected $42-million deficit.

“We’re not out of the woods” said Gillian Heisz, the university’s vice-president of finance and operations. “There’s a lot of hard work ahead of us. The president has been clear he really sees this as an opportunity to reimagine the University of Windsor, modernize our services, support our students and our community as best possible. Which means looking at how we provide services to students, looking at what programs we’re offering. All of those things are on the table and will continue to be for a number of years.”

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The university’s projected 2025/2026 operating revenue is $315.5 million — a $26.4-million drop from the previous year. Its main source of revenue — about $202 million — comes from student academic fees.

UWindsor is projecting expenditures of $324.8 million, which is a $19.8-million decrease from last year. The bulk of the operating budget comprises salaries, wages and benefits, which rings in at more than $244 million.

The university previously stated it was facing a deficit of about $32 million. Heisz said Wednesday that at one point, it jumped to about $42 million.

The 92-page operating budget, approved Tuesday by the university’s board of governors, states the university managed to mitigate the forecasted deficit down to $9 million.

With the use of one-time funding from the Ministry of Colleges, Universities, Research Excellence, and Securities (MCURES), UWindsor said it brought the shortfall down to “a more manageable $4.6 million” for the year.

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“The last $4.5 million or so is money we’re going to have to find in-year,” said Heisz. “Hopefully we’ll have a lift on enrollment versus what we budgeted. That’s obviously the ideal situation.”

The university is projecting it will have 14,868 full-time students for Fall 2025. That’s a decrease of 554 students from Fall 2024.

“All the pressure is on the grad side, which is obviously predominantly international in our history,” said Heisz. “And so international enrollment is down 25 per cent. Undergrad is actually up a little bit.”

The university has faced criticism, including staff and student protests, as it implemented a tough plan including staff reductions, salary and hiring freezes, and operational restructuring.

One of the most controversial moves was killing the 65-year-old University Players theatre program to save about $500,000.

Cancelling vacant faculty positions, reducing some teaching supports, and cutting staff salaries and benefits have resulted in more than $24 million in savings.

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The university cut 56 union positions, though 22 new roles are being created. Heisz said the university also eliminated 24 management and executive positions.

UWindsor said it will have to draw down its reserve fund to manage “one-time costs” associated with the cuts, such as severances.

“It’s a very hard time for the university community right now, and we are trying our best to put our people first,” said Heisz. “Obviously, our staff are feeling a lot of pressure because of the cuts.”

University officials say the reasons for the budget shortfalls were largely out of their control.

Last fall, the federal government imposed new requirements on student visas and caps on international students, a major source of revenue for post-secondary institutions across Canada.

UWindsor said those changes by Immigration, Refugees, and Citizenship Canada (IRCC) are expected to cause a $600-million revenue loss for Ontario’s colleges and universities in 2025/2026.

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Many other Ontario universities are also facing budget deficits.

UWindsor said growing geopolitical tensions with other countries, particularly India, also hurt Canada’s reputation as a primary study destination.

It was a perfect storm that was particularly devastating to UWindsor.

There are several factors that “set us apart from our peers,” university president Robert Gordon wrote in the foreword to the budget.

In the Fall of 2024, the school said 25 per cent of its full-time students came from outside of Canada. Those students made up about 29 per cent of the university’s operating budget revenue.

India has historically been the University of Windsor’s main source of international students.

“There lots of things moving as we start to do multi-year planning,” said Heisz. “What will happen with international students? Will Canada’s reputation internationally start to rebound? Potentially, yes, especially because one of our biggest competitors across the border is obviously having a shift in their demand from international students.”

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While grappling with those outside forces in an attempt to rein in the deficit, she said the focus was avoiding cuts that would significantly affect students.

“Unequivocally, we’ve been putting our students first wherever possible,” said Heisz.

She said scholarships, the GA/TA program and student employment opportunities were not cut. Mental health, counselling, and wellness services were also untouched.

“That’s something that we’re really proud of,” said Heisz.

“That’s not to say we’re not having to make tough decisions. The staff person that they’re perhaps used to going to might not be in that position. That position might not exist anymore. We know our students are going to feel some of that. But we are doing our best to make sure that the students have the best possible experience here at the University of Windsor.”

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