Budget cuts are coming to VIU as the university aims to address a $20 million deficit, thanks in large part to reduced student enrolment. (VIU)

By Alex Rawnsley

budget issues

VIU trimming academic & admin budgets amid $20m deficit

Oct 6, 2023 | 5:32 AM

NANAIMO — Reduced enrolment is the primary reason behind a projected tightening of the purse strings at Nanaimo based Vancouver Island University over the next three years.

A budget shortfall of $20.2 million is expected for the 2023/24 school year as a result of student populations failing to return to pre-pandemic levels, outlined a VIU deficit mitigation plan. The deficit in cash and students is forcing some aggressive changes to budgets through 2026.

The plan, published Sept. 25, highlights a 10 per cent cut in expenditures for academic units and another 10 per cent for non-academic areas by 2026.

“The three-year window allows sufficient time to make required changes in both academic and service units, as well as extensive analysis of business practices across all areas to find ways to become more efficient and effective,” the plan stated.

Enrolment figures through Sept. 1 showed a six per cent decrease of domestic and Indigenous student registration and a 14 per cent drop in international students compared to budget forecasts.

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Around 11,000 students were enrolled at VIU at the beginning of September.

These drops in students attending have attributed to a $3.1 million loss vs budget alone this year.

No cuts to academic units will occur until September 2024, however non-academic departments will see a five per cent reduction immediately.

Once cuts to academic units begin, trades and applied technology will feel the largest effects first, however health and human services is poised to see the greatest budgetary reductions over three years with a projected $1.95 million cut.

“VIU is required to meet all our commitments for expansion of programs that have been funded by the province in recent years,” a spokesperson from VIU told NanaimoNewsNOW when asked about recent expansion of trades programs through government funding. “We will continue to do so as part of our ongoing commitment to student learning, experiences and services.”

Science and technology along with management courses will also see reductions.

“Our students are the reason the institution exists and, as an access institution, we remain committed to providing educational experiences that allow all learners to embrace their potential,” the plan read. “Decisions to improve the university’s financial standing must not be at the expense of students meeting their program requirements in a timely manner.”

Non-academic areas to bare the brunt of budget cuts include student affairs ($1.16m over three years), IT services ($855,000) and international education ($832,000).

A 2022 financial recovery task force led efforts to find budget savings, and recommended implementation of several policies.

Steps to save money already underway or under consideration at the University include a freeze on overtime without senior approval, a review of current course offerings, a freeze of hiring and/or release of vacant positions, and setting a minimum class size of 15 students in first and second year courses.

Through cuts to budgets, along with revenue generation efforts, the University expects to return a balanced budget in 2026/27.

“We are putting an expanded emphasis on our recruitment and retention of students as this is a primary source of revenue,” the spokespersn added. “Increasing revenues can also be achieved by reducing expenses and improving efficiencies for revenue-generating units.”

VIU is a public university, with a primary campus in Nanaimo, while regional operations exist in Parksville, Powell River and Duncan.

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