File photo (image credit - CFJC Today)

By Michael Reeve

BUDGET CUTS

Stark reality sets in as TRU grapples with multi-million dollar international student tuition hit

Nov 25, 2024 | 4:35 PM

KAMLOOPS — Thompson Rivers University (TRU) is embarking on a new reality of post-secondary education in the fallout of the federal government capping international student enrollment. Those students have historically made up approximately 28 per cent of TRU’s annual revenue.

“We are here only because of changes introduced by the federal government,” said Gillian Balfour, TRU Provost and Vice-President Academic.

Coming off a year with a $15-million surplus, TRU administrators will now be facing the task of cutting the school’s budget by 8 per cent — equivalent to approximately $21 million. That shortfall, however, will not be recouped from domestic tuition increases.

“We had hoped to do some major capital projects in the coming years. Those kind of aspirations will need to be scaled back and reimagined,” said Balfour. “We are not simply going to turn our eyes onto how can we increase tuition in order to achieve our stated goals. It’s about… maybe we have different goals now.”

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Balfour, noted the school is not currently considering an early retirement package for staff, but with enrollment dropping, staffing levels could be forced to follow.

“As student enrolment numbers drop, so to do related costs,” said Balfour. “At this point in time, we are projecting what we can see as naturally occurring reductions in both staffing positions, as well as non-compensation areas.”

Over the past 12 months, TRU has broken ground on an Indigenous Education Centre, and a low carbon energy system, while also pledging millions to a pedestrian overpass. VP of Finance, Matt Milovick stated those projects are expected to roll on.

“Those ones are baked. They are good to go. You’ll have to ask the city where they stand on the bridge. That one is still in the hopper and if the city is interested in moving that one forward, we are as well,” said Milovick. “But beyond that, we have probably pulled about $5 million out of spending and capital this year. We are really looking to reduce the capital funding in future years. It’s tight.”

Travel expenses are expected to be cut 15 per cent, but it’s unlikely that will be applied evenly to departments like WolfPack Athletics, who require travel to compete.

“We run that operation pretty lean. We want to make sure we can retain the core teams that we have. But like I said, there are not sacred cows. Everything will be looked at. But right now, the athletics program should be okay. They will have certain reductions in some areas but we will run the full slate of teams,” said Milovick.

Overall, the university is entering a wait-and-see approach, as the ripples from the enrolment cut have yet to be seen, but the work ahead for administration is clear.

“What are the new directions for programing? How can we attract more domestic students and retain domestic students better than ever?” said Balfour. “Nothing will replace international student tuition. This is fundamentally going to reframe how post-secondary budgets are built.”