We are anticipating another tight budget cycle. New changes in government policies, particularly those affecting international student enrolment and visa regulations, continue to cause uncertainty. This will influence the budget for this year and future years. Much work has been done by many across SFU to minimize the impact of these challenges, but the ongoing change continues to have an impact.

As we look ahead, a one-time gain from the final part of divestment from fossil fuels will help offset some of our budget pressures. However, we anticipate an operating budget pressure of $20M for next year resulting in a budget cut for most units in 2025-26. Roughly 80% of this year’s deficit is directly linked to the drop in international enrolment. The decision about how to manage those budget reductions will be made by individual units. SFU is required to have a balanced budget and this reduction will ensure we balance our budget at the consolidated level.

The provincial government requires universities to produce balanced budgets and SFU is taking immediate actions with long-term sustainability in mind. This challenge also presents a reminder for us to innovate and be resourceful in how we operate. As we respond, we will continue to maintain SFU’s standing as a leading research university. 

This is a challenging time for our sector. Universities and Colleges across Canada are navigating uncertainty and making difficult decisions. New government policy changes have contributed to declining international student enrolment, which has had an impact on our financial situation. 

SFU has made decisions that put us in a stronger position than many institutions, however, we are still experiencing challenges. Our approach will continue to focus on the future sustainability and growth of our university.

Over the next month and a half, faculty units and administrative departments will be individually determining how they will manage their budgets and resources for next year, as impacts will vary in different areas of the institution.

The budget shortfall will be managed through many different actions, including a continued hiring freeze and other measures. SFU will continue to meet regularly with employee groups to keep them informed as we move through this process. 

Audited financial statements are a snapshot taken at the end of the fiscal year. The budget surplus includes restricted endowment contributions. SFU does not contribute to these funds and restricted endowment funds can only be used for the purpose for which the donor intended. Last year, SFU posted a deficit position and is expected to be close to be balanced, but close to break-even in this current year.

If you have any questions about the hiring freeze, restructuring and impact on your unit, please connect with your supervisor or department chair. Representatives from people strategies office will also support leaders with their plans to ensure due process and consideration of our key principles and values.

The budget process is a collaborative effort led by the Offices of the Vice-President, Finance and Administration and the Office of the Provost and Vice-President, Academic. The 2025-26 budget cycle is currently underway and detailed budget are being developed across the university. 

If you missed the budget info session in mid-November, you can view the summary [LINK] and budget FAQ to help you understand how to engage with your department and unit budget leads.

Our people have made SFU the remarkable institution it is. We are working hard to do all we can to support employees through this process with care and compassion. 

We acknowledge how difficult the continued uncertainty is for everyone. The task for all of us is to use this moment to make decisions that will ensure a future-ready, responsive university that can make a difference, now and into the future. This means that we must continue to carefully manage resources, identify efficiencies, and align our financial decisions with SFU’s vision, purpose and strategic priorities. 

The hiring freeze currently in place will continue into the 2025-26 fiscal year. This measure has reduced the university’s costs while ensuring that exceptions are made for critical roles. For more information, see hiring freeze FAQ. 

The university is working to minimize any impacts on teaching, learning and research activity. The People Strategies office will also support leaders with their plans to ensure the continuity of services and minimizing any negative impacts to students and to the overall SFU experience.

SFU has always been led by our values, and we will continue to make decisions from that place. We want to ensure affordability for students as we navigate this challenging time. We have also made commitments that adhere to our values, such as becoming a living wage employer and extending more supports to graduate students, and we continue to work to support those priorities.

We recognize that this is a difficult time. Supervisors are being supported to have conversations with their teams about workload, service offerings, and looking at their operations differently.  There are several options available to supervisors to help with how to manage workload.  Contact your HR Strategic Business Partner or see a list of workshops for leaders on the Learning and Development page. 

We are also asking our staff to look at the way we do things to maximize opportunities for efficiencies across the organization, as well as to stop doing things that are not priorities for the institution. Employees are supported to talk with their supervisor about opportunities to increase efficiency, manage workload based on core priorities and discuss work that could be stopped, paused or improved. 

At SFU, students are at the heart of everything we do. The university’s leadership team is working to minimize impacts on students and ensure the continuity of the excellent learning, teaching and research activities that makes us one of Canada’s leading research universities. We acknowledge that this is a difficult time for the university, but we are confident that SFU will be stronger as we move forward.

In addition to contacting your supervisor, you have the supports available listed below:

• HR Specialist or Strategic Business Partner
• Workshops for Leaders
• Learning for Staff
• Wellness Resources 
• Mental Health and Well-being Supports Page for staff and faculty
• Employee and Family Assistance Program (EFAP)
• CUPE or APSA 
• MultiFaith Centre