Skip to main content

Introduction

Post-secondary education (PSE) institutions around the globe are at a crossroads, caught in a world that is transitioning from a relatively stable world order to a new fractured, multipolar order characterized by countries competing for talent and global influence.[1] This shift, which began with the events of the global pandemic, has today resulted in strife, war, and an inability to count on our southern neighbour.

Ontario Tech has long positioned itself around energy, advanced manufacturing and artificial intelligence (AI) to achieve alignment with government funders and secure as much limited funding as possible. Little did we know that Canada would now find itself looking to us, through new funding opportunities in research and dual-purpose innovation to contribute to our country's defense and national sovereignty.

From a fiscal point of view, the Bank of Canada is forecasting that the Canadian economy will get worse before it gets better with the current climate leading to an anticipated recession.[2] This amplifies our already precarious fiscal position with funding cuts and tuition freezes having taken Ontario's universities to the brink of insolvency. Public sector institutions (i.e., universities, colleges, hospitals) have no option but to reinvent themselves and to find new business models so as not to become obsolete. AI will be a key in supporting this transition.[3] AI has rapidly and forever changed the post-secondary landscape. From research norms to how we teach and learn, we must adapt or be left behind. Being a static purveyor of content in a time of free and ubiquitous information is not a place of strength. We must dare to imagine, be bold, take chances and redefine learning and research opportunities to take full advantage of AI while implementing the appropriate safeguards.

It is only within this macro-outlook that a short-term budget framework and analysis (i.e., 2026–2029) can be placed into a proper perspective which includes broad sweeping global challenges and opportunities.

In previous versions of this budget paper, forecasted budget deficits in the near term were a reality for Ontario Tech, yet these have not materialized for several reasons. First, by focusing on differentiated growth, we have exceeded our projected enrolment targets each year over the past five years, and second, we have actively managed expenses by deferring investments in capital projects and not growing our financial reserves. We now must focus on providing enhanced supports for this growth through additions to our physical and virtual infrastructure and student assistance programming. This requires us to get serious about reimagining our future with the use of AI in the classroom and reconfiguring learning spaces for an AI world – all of which will require investment.

The provincial government’s recent funding announcement – including the reworking of the funding formula – has provided a moment of relief for the post-secondary education sector in this province. With the exact details of how this new formula will be applied and what that exactly means for Ontario Tech still unknown, we have no alternative to being comfortable with living in the uncertainty of that “moment.” In the short term, this government commitment will translate into more financial and budgetary certainty for Ontario Tech. An important caveat to note is that the government has made it very clear that these new investments must be used to support core student services such as high-quality academic programs, mental health supports, and expanded work-integrated learning opportunities that align with labour-market needs. We also need to be honest with ourselves and realize that we will still only be keeping our head above water.

Looking into the near future, our fiscal situation may be stabilized because of our continued commitment to differentiated growth strategies and prudent budgetary decision making, as well as the province’s recently announced funding changes. This once-in-a-decade provincial funding injection provides short-term stabilization but going forward the university will not be able to rely on this measure alone. We will need to continue to grow student enrolments to remain fiscally sustainable and we must continue to plan prudently as inflationary increases on salaries alone will add more than $6 million annually to the expense side of our ledgers. We will also need to diversify our revenue sources and develop our reserves to support existing student and program needs, as well as expand our capital infrastructure to meet future needs.

The 2023–2028 Integrated Academic Research Plan (IARP) reaffirms our commitment to four strategic priority areas: Tech with a conscience, Learning re-imagined, Creating a sticky campus, and Partnerships supported by differentiated enrolment growth to elevate our reputation, achieve economies of scale and increase revenues. We will continue to focus on actions to further advance the IARP such as creating distinctive programs with hands-on learning opportunities, offering flexible options for traditional and non-traditional learners, and prioritizing initiatives that build job readiness while promoting ongoing upskilling and reskilling. We are intentionally committed to strengthening our brand and appeal to students, scholars and partners, to continue to yield high application numbers from both domestic and international markets. The university’s innovative approach to program delivery, adaptability, and strong industry partnerships, aligned with government priorities, will drive continued growth and success.

  1. Kirk, T. (2025). Re-imagining global higher education in an era of global realignment. Posted online: October 21, 2025. https://www.globalpolicyjournal.com/blog/21/10/2025/re-imagining-global-higher-education-era-geopolitical-re-alignment ↩
  2. Bergeron-Oliver, A. (2026). BoC holds interest rate but warns of downstream effects of Iran war. Posted online: March 18, 2026. https://www.ctvnews.ca/business/article/boc-holds-interest-rate-but-warns-of-downstream-effects-of-iran-war/ ↩
  3. Murphy, S.A. (2025). Artificial intelligence for good – Canada’s niche? Posted online: November 24, 2025. https://nationalpost.com/opinion/steven-a-murphy-ai-for-good-canadas-niche ↩