2025-26 Budget Information Session Summary

On November 18, 2024, SFU hosted a Budget Information Session to provide faculty and staff with an understanding of SFU’s 2025-26 budget planning process. This annual information session aims to support meaningful discussions with leaders and teams as budgets are developed. 

Led by Dilson Rassier, Provost and Vice-President Academic and Chief Budget Officer, the information session was held virtually via Zoom, with over 360 attendees. 

With a focus on budget development, participants asked clarifying questions about the post-secondary financial model, challenges facing the sector as well as SFU’s revenue strategies including the international student strategy. 

Below are the highlights from the session. 

Post-secondary financial model

• Universities in Canada, including SFU, are funded through a combination of government grants, tuition fees and other revenues. While domestic tuition rates are regulated and supported by provincial funding, SFU does not receive provincial funding for international students. As a result, international student fees reflect the full cost of delivering the university's programs and services. These fees are set with careful consideration of factors such as student affordability, comparative rates at other institutions, and inflationary pressures. This funding model helps maintain the quality of education and services while providing a supportive environment for all students. SFU also supports international students through bursaries, ensuring access to financial aid and is one of the few Canadian schools to do so.
  • It’s important to note that SFU has already reached its cap on domestic students set by the provincial government. For additional domestic students above the capped number, SFU does not receive a matching subsidy from the government, which means the university absorbs a loss for additional domestic students. 
• As international student numbers continue to decline, SFU and other post-secondary institutions need to find new revenue to offset lost revenue. SFU’s long-term target is 25% international enrollment. The current year projection based upon fall 2024 results show that international students are expected to represent 15.9% of the total undergraduate population, a decrease from 18.9% last year. (Note: The 2024 fall international student report indicated a projection of 16.3%, however the above numbers have been adjusted based on the latest federal government announcement.)

Federal changes that will impact our budget

• The federal government has recently announced further restrictions on international student and spousal visas. 
  • On November 15, the government announced the new Provincial Attestation Letter for Study (PALS) requirement for college transfers. This means international students transferring from Canadian colleges (including Fraser International College) to SFU now need an additional government approval letter before they can begin their university studies. This requirement will add another administrative barrier for international students wanting to transfer to SFU, which will have a further negative impact on our international enrolment numbers.
• Additional challenges facing international students include delayed visa processing and changes to high school and college requirements, which will further impact current pathways for international students interested in enrolling at SFU.

Opportunities and Revenue Strategies 

SFU has implemented several strategies over the past year to improve the university’s reputation to help increase international student enrolment. 

• Resources have been re-directed to help advance key relationships to support our revenue generation strategies. This includes two key roles:  
  • The Director, International Recruitment is strengthening new agency partnerships and will be expanding recruitment efforts to focus on US, Middle East, Latin America, South Asia, while continuing efforts in China and India.
  • The Senior Director, Government Relations will continue building stronger relationships within the federal and provincial governments.
• Additionally, we continue to evaluate and prioritize the development of alternative revenue streams to reduce reliance on international tuition. Work is underway on: 
  • Non-credit programs, micro-credentials, and leveraging property assets to help generate revenue for strategic initiatives.
  • Building partnerships with global foundations to create pathways and funding opportunities for research, scholarships and more. 
  • Government-funded expansion in the tech programs (business analytics, computer science and more). 

Next Steps

• This is a challenging time for our sector. Universities and Colleges across Canada are navigating uncertainty and making difficult decisions. Looking ahead, we are anticipating another tight budget cycle. Changes in government policies, particularly those affecting international student enrollment and visa regulations, continue to cause uncertainty.
• At SFU we have been preparing for these challenges for some time and have made decisions that put us in a strong position. This will continue to be our approach, as we make decisions to ensure the future sustainability and growth of our university. We are also actively working with the provincial and federal governments to raise awareness of the impact of policy changes on our university and our sector, and how that translates to the economy. 
• While there's no institution-wide budget reduction program planned for this fiscal year, there is a need for continued cost containment measures due to decreasing international enrolment, units and faculties will need to adjust their budgets based on their specific financial positions. 
  • For next year’s budget, budget reference points are expected to be shared with VPs on December 2. Deans and faculties can expect to receive their budget reference points on December 4. Final budgets are to be submitted to the Budget Office by mid-January.
• The 2025-26 budget will be submitted to the Board of Governors in March 2025.

As we enter the final quarter of the fiscal year, we are committed to addressing our financial priorities while focusing on the university's academic mission, institutional priorities and the student experience. 

We are grateful to the SFU community for their collaborative work and continued support as we remain focused on strategic resource allocation to ensure long-term sustainability. Thank you for your continued engagement and contributions to these important conversations.

Related articles

• 2024-25 Budget: Key facts about the current fiscal year  
• 2025-26 Budget: Current development cycle for next year’s budget 
• Budget FAQ
• Recap: Fall 2024 Faculty and Staff Town Hall
• Understanding SFU's Budget and Budget Process
• SFU’s Finance Report: Understanding the Numbers