Budget updates

Overview

The 2026-27 operating budget projects a deficit of $20.7 million. This represents an improvement over the 2025-26 third-quarter projected deficit of $29.1 million.

Despite ongoing financial pressures, Concordia remains on track to achieve a balanced budget by 2028-29 under the recovery plan approved by the Board of Governors and the Ministry of Higher Education.

Concordia continues to address the challenges associated with its structural deficit through a disciplined, multi-year approach focused on long-term sustainability, fiscal responsibility and the protection of its academic and research mission.

While measurable progress has been made, the university’s financial position remains constrained. Revenue growth is modest and depends largely on provincial grants and tuition indexation, while the university continues to face significant uncertainty related to declining international enrolment, inflationary pressures, rising salary costs and broader economic conditions.

What’s driving the challenge

Concordia’s structural deficit is the result of several long-term and interconnected pressures affecting the higher education sector in Quebec and across Canada.

These include:

• Declining international student enrolment linked to immigration policy changes, geopolitical uncertainty and evolving tuition and funding frameworks
• Continued inflationary pressures affecting salaries, contracts, technology, construction and operating costs
• Government funding that has largely kept pace with inflation but has provided limited real growth
• Rising salary and benefit costs negotiated under provincial frameworks
• A changing student mix, with growth concentrated in lower-fee domestic student categories while international enrolment continues to decline

Concordia is particularly vulnerable to these pressures because of its historical reliance on revenues generated from international and rest-of-Canada students.

These challenges are not unique to Concordia. Universities across Quebec and Canada continue to face structural financial pressures driven by changing enrolment patterns, rising costs and evolving government policy environments.

Budget strategy and outlook

The 2026-27 budget continues Concordia’s disciplined approach to financial management while supporting strategic investments in its academic and research mission and future growth.

The budget includes:

• A six per cent reduction to sector budgets, representing $34.8 million in budget adjustments across the university
• Targeted reinvestments of $17.5 million, with the majority directed toward the academic sector
• Continued oversight of workforce and operational spending

While expenditure reductions remain necessary, the university is also focused on building a more sustainable and resilient financial model capable of supporting long-term academic excellence, research activity and student success.

Revenue and enrolment outlook

Concordia is projecting a modest enrolment growth in 2026-27, with the total of full-time equivalent students expected to increase by approximately 2.4 per cent.

Growth is expected primarily among students from Quebec, while international student enrolment is projected to continue declining.

This shift is financially significant. Although total enrolment is increasing, international students generate higher tuition revenues, meaning that growth in domestic enrolment does not fully offset the revenue impact of declining international student numbers.

To support long-term sustainability, Concordia continues to explore opportunities to:

• Diversify its learner population
• Expand flexible and alternative program delivery models
• Develop strategic partnerships

Fiscal responsibility

Over the past several years, Concordia has implemented significant operational and structural measures to reduce costs, improve efficiency and align expenditures with revenues.

These measures have included:

• Hiring controls and position reviews
• Reductions in discretionary spending
• Operational streamlining
• Adjustments to service levels
• Position closures through attrition and retirement
• Reviews of administrative and operational structures
• Optimization of ancillary operations and administrative processes

Over the past three budget cycles, administrative sectors have absorbed significant recurring reductions:

• 2023-24: 7.8 per cent reduction
• 2024-25: 8.1 per cent reduction
• 2025-26: 7.2 per cent reduction

Academic and research sectors have also contributed substantial savings:

• 2023-24: 7.8 per cent reduction
• 2024-25: 3.8 per cent reduction
• 2025-26: 2.7 per cent reduction

These reductions have required difficult decisions across the institution, including operational restructuring, reductions in contracts and service adjustments.

The university’s workforce remains its largest area of expenditure, representing approximately 72 per cent of total expenses.

In 2025-26, Concordia also implemented voluntary retirement programs that resulted in 110 positions being closed or identified for closure. These measures are projected to generate approximately $10.8 million in savings in 2026-27.

For 2026-27:

• The hiring freeze will remain in effect
• Positions vacated through retirement, voluntary retirement programs or attrition will not automatically be replaced
• Additional workforce adjustments may be required as the university continues to align expenditures with long-term revenue realities

Concordia continues to work collaboratively with employee groups and unions to identify sustainable approaches to managing workforce-related costs.

Financial stability and long-term recovery

Despite ongoing financial pressures and a recent credit rating downgrade driven by Government of Quebec policy changes, Concordia continues to maintain a healthy balance sheet, sufficient liquidity and compliance with key financial ratios.

The university’s recovery plan, approved in 2023, remains the institution's roadmap toward restoring long-term financial balance by 2028-29.

To date, Concordia has implemented substantial operational and structural measures that have improved its financial position while preserving its core mission of teaching and research.

Continued discipline, careful monitoring and long-term structural adjustments will remain necessary in the years ahead.

Shared effort

The decisions required to restore long-term financial sustainability are difficult and their impacts are real.

At every stage, Concordia’s approach is guided by evidence, responsibility and a commitment to protecting the university’s academic and research mission.

Faculty and staff play an important role in helping the university navigate this period of transformation and position itself for long-term resilience and success.

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