Carleton University projecting 'significantly higher' operating deficit as international enrolment drops

A sign on Carleton University campus is seen in this Oct. 14, 2023 image. (Natalie van Rooy/CTV News Ottawa)

Carleton University says it is projecting a significant increase in its operating deficit in the 2024-25 academic year as a result of the reduction in the number of international students being let into the province.

A letter to "all members of the Carleton community", signed by L. Pauline Rankin, provost and vice-president of Academics, and Angela Marcotte, interim vice-president of finance and administration, said the university has seen international enrolment drop dramatically after following new federal caps.

"The impact of the federally-imposed cap on international undergraduate student visas has been dramatic, resulting in a 55 per cent reduction in first-year undergraduate international student enrolment. Simultaneously, we experienced a 35 per cent reduction of incoming international graduate students," the letter read.

The 10 per cent domestic tuition cut and freeze in Ontario was also mentioned as having a "destabilizing effect" on Carleton's financial health.

"At the beginning of the 2024-25 fiscal year, it was estimated that Carleton’s operating budget deficit would be $26 million… Due to these additional external factors, our projected operating deficit is now significantly higher and current financial forecasting suggests that it will continue to increase without serious intervention,” read the letter.

It comes as Algonquin College made a similar announcement, saying reduced international enrolment is leading to an expected revenue shortfall of $32 million.

The federal government announced a temporary two-year cap on international student levels by 35 per cent this year in January and then announced new international student study permits will be reduced by another 10 per cent to 437,000 permits in September, with the target continuing into 2026.  The federal government also announced changes this fall to post-graduate work permits, with the permits restricted to areas that have labour shortages in Canada.

Carleton University says it has a plan to address the budgetary deficit, including implementing "cost containment strategies, revenue growth ideas, academic program renewal and an organizational excellence and optimization plan."

The university is encouraging staff and students to share their thoughts on how to address the budget through the provost's office.

"A collective effort will strengthen the university’s response to the financial challenges facing us as we move forward," the letter said.

--With files from CTV News Ottawa's Natalie van Rooy and Josh Pringle