Okanagan College faces $8.3M deficit as international enrolment falls

College faces $8.3M deficit

Photo: Contributed

Okanagan College could run a deficit of $8.3 million over the next fiscal year due to federal policy changes that's reduced international student enrolment.

In a post to the Okanagan College website on Thursday, OC President Dr. Neil Fassina outlined the “unexpected, significant challenges” the institution faces.

Last year, the federal government put a cap on international study permits, reducing the number of permits by 35%. In 2025, the number has been reduced by a further 10%. As international students pay significantly more than domestic students, this has impacted Canadian post-secondary institutions finances, and will continue to do so.

Photo: Okanagan College

Dr. Neil Fassina

“We expect international student enrolment to continue to decline over the next year, creating increased pressure on the College's budget,” Fassina said.

To plan for the 2025/26 fiscal year, which begins April 1, the school is anticipating about half as many international students next year. While they're not sure what the enrolment will actually look like, the college says they could see a $13.4 million reduction in international tuition revenues.

Fassina says while they felt the impacts of declining international students this past fiscal year, “it will be more challenging next year.”

While he says they've “identified opportunities that will offset revenue loss” like “workforce adjustment processes,” the college is still facing a deficit of approximately $8.3 million dollars next fiscal year.

As a public institution, Okanagan College is required by legislation to run a balanced budget. If the school is to run a deficit next year, it'll require government approval.

“We are working together with the Ministry of Post-Secondary Education and Future Skills to determine our next steps and if we run a deficit in 2025/26 it will be within the context of a multi-year plan to return to a balanced financial position as soon as possible,” said.

In his latest memo, Fassina did not say how many employees have been laid off as a result of the budget shortfall, but last November, the college confirmed that 11 part-time term staff had their workloads cut for January and dozens more positions were at risk.

Fassina said the college is “reducing non-essential spending,” like reducing travel and eliminating duplication of work between departments. The college has also launched an “an early retirement incentive program to mitigate future layoffs.”