'We have another challenging year in front of us'
Dear Concordians,
On May 14, the Board of Governors approved the university’s budget for fiscal year (FY) 2026-27. Thanks to enormous commitment, and indeed sacrifice, by our community, we will meet the obligations of our recovery plan for the fiscal year just ending. We also continue to make measurable progress toward our overall goals of returning to financial equilibrium while simultaneously adjusting our business model to better ensure mission sustainability going forward.
To comply with the next set of benchmarks in the recovery plan, our deficit target for FY2026-27 is $20.7 million. However, as expenses continue to rise, to reach this goal we will need to realize a combination of $34.8 million in cuts and new revenue generation. Once again, this is a tall order, particularly given all the efforts made these last four years.
At the same time, there are some indications the most severe effects of government policy decisions are behind us. In addition, as we track our enrolment numbers, there is finally room for some cautious optimism, although it would be premature to say more this early in the registration cycle.
Managing expenses
Every sector will implement a six per cent cut to their operating budgets this year. However, the overall cost of wages remains the central structural issue we must address in our finances. Nearly three-quarters of the university’s total expenditures go to salaries and benefits. That means we will have to continue reducing our staffing complement, which will require painful choices.
The current hiring restrictions will therefore continue for another year. We will not automatically replace any role in FY2026-27 and will close positions whenever possible. Unfortunately, as the staff and faculty Voluntary Retirement Programs did not generate the required savings, layoffs are expected to be necessary to meet our financial obligations.
Growing revenues
Several revenue-generating initiatives are getting off the ground. For example, undergraduate microprograms and reimagined approaches to the recognition of prior learning have the potential to reach new and different groups of learners. We will need more programs like these, which both help students and our bottom line.
For more details about these initiatives and Concordia’s budget in general, please visit the dedicated webpage on Carrefour. We regularly update it with the latest information and responses to your questions.
Staying the course
We have another challenging year in front of us. While it’s encouraging to see some more-positive indicators than we have experienced in the past few years, the reality is that we must remain disciplined and focused. And we need to continue to be creative and supportive of each other to achieve our objectives.
Graham Carr
President and Vice-Chancellor