Revenue assumptions

A major aspect of our revenue assumptions is the shift from an enrolment-based to a performance-based operating grant under the SMA4. By the end of SMA4, funding tied to eight metrics will increase from 25 per cent to 40 per cent. Figure 2 illustrates the proportions of our government grant funding throughout the SMA4 timeframe. Moreover, overall grant funding will remain static, with inflation-adjusted per-student amounts decreasing. To preserve our current funding levels, both the enrolment corridor and performance targets must be met during each year of the SMA4. There is limited opportunity for additional funding (i.e. estimated to be less than $100K) through reallocation, as funding resources from other institutions not meeting their metrics targets may be awarded to those that achieve or exceed them.

Grants: Year over year, the proportion of our revenues accounted for by our operating grants has declined ( Figure 3). This is because our operating grants are capped at the 2016 rate. Stated another way, this amounts to approximately a 30 per cent decrease in provincial per-student funding over the past decade when adjusted for inflation. Further, because the government caps domestic enrolment at these 2016 corridor payment levels, we also carry unfunded domestic students.

Last year, the province allocated additional grants to the higher education sector for three years, with our share of this one-time funding for 2025-2026 estimated at $3M. Government funding is shifting toward more targeted grants, allocated to specific purposes rather than for broad institutional support. For example, in 2025, the university will receive an extra $600K for facilities renewal, covering capital costs for existing buildings. These funds cannot be reallocated to other areas, and they must meet strict accountability and reporting measures.

Tuition: In 2019, the government introduced a 10 per cent cut to domestic tuition and froze tuition until the end of the 2027-2028 fiscal year. In 2025-2026, limited increases were introduced through tuition anomaly adjustments for incoming students into three of our degree programs, resulting overall in a minor budget increase. We also applied a three per cent increase to international undergraduate tuition fees, noting that these remain below the Ontario system median. However, we continue to assess the competitive landscape for international students and its potential effects on future enrolment plans. For 2025-2026, total tuition revenue is projected to increase by $15.5M (i.e. $9.5M domestic, $6M international) with most of this growth stemming from enrolment growth and retention over previous years.

Ancillary fees: The balance of student fee revenues comes from ancillary fees, which support pre-specified approved activities (e.g. recreation and health services, student learning and supports). These fees, representing about 12 per cent of total student fees, and follow a provincial fee protocol that allows for an annual inflationary increase based on the Bank of Canada’s September-to-September Consumer Price Index (CPI), which is currently at 2.3 per cent. An increase of $1.7M in extra ancillary fee revenues linked to enrolment growth is projected. About $1.0M of these funds will be deferred for future technology-enhanced learning projects, resulting in $0.7M in additional revenue for the 2025-2026 operating budget.

Other: Approximately $25M will come from other sources, such as interest income and commercial services. Our goal is to maintain an overall financial balance in commercial services, including parking and food services. Any surplus is allocated to capital reserves for future investments, while prior-year reserves cover any anticipated deficit. This approach ensures the core operating budget remains unaffected by supplementary services.