Frequently Asked Questions

VIU’s operating budget is tied directly to student enrolments and associated tuition revenue. VIU’s financial difficulties began in 2018-19 due to a steady decline in enrolments since 2013. Historically, the budget model relied on forecasting versus actual trends. Despite this, the university continued offering the same number of courses and services and hiring staff and faculty to overly optimistic enrolment projections, resulting in rising expenses while revenues decreased.

Previous budgets were based on optimistic enrolment projections. From 2023-24, VIU is using actual enrolments from the prior year to build more accurate budgets. 
 
VIU along with many other post-secondary institutions across Canada, experienced an enrolment decline in international students during the pandemic, but expected international enrolments to recover. The international market has changed now and into the foreseeable future, with fewer international students, particularly from China and India, choosing to study in Canada. With lower enrolments we will see lower tuition revenue than in previous years. VIU must reduce expenses in line with revenue to return to financial stability. 

VIU’s plan was to return to balanced budgets by the 2026-27 fiscal year through a combination of expense reductions, revenue increases and reassessing operational efficiencies. With challenges such as shifting enrolment trends, regulatory changes, and rising costs, a balanced budget is now several more years away. View our budget reports. 

Yes, the provincial government has approved VIU’s DMP and expects the university to meet its $18 million reduction target by March 2026. 

Public universities in BC cannot run deficit budgets and must seek annual approval to do so. VIU must meet its DMP commitments to ensure financial sustainability and comply with provincial regulations. 

VIU has implemented program cancellations, school closures, and layoffs. However, due to timing differences, the full financial impact will not be seen until 2025-26 and 2026-27.

A structural deficit means that VIU’s core revenue sources – domestic and international tuition and provincial operating funds – do not cover its operational expenses. 

No, restricted funds from contracts and research grants as well as capital can only be used for their designated projects and cannot be used for general operations. 

Fluctuating enrolment trends, regulatory changes, and the reliance on alternative revenue sources have made financial forecasting challenging. In addition, the fiscal and academic year do not align, and a significant portion of our current revenues are restricted contract and research funds. Revenue from contracts and research is unpredictable until awarded. 

The budget cycle has been extended, with final approval now planned for June instead of March. Budget templates will also be delayed until late February to accommodate these changes. 

As stewards of public funds, VIU is committed to fiscal responsibility and long-term sustainability to ensure it can continue serving the region effectively. As the provincial government does not permit universities to run a deficit, and to ensure VIU returns to solid financial footing going forward, a base budget reduction of $11.6 million is required for the 2025-26 fiscal year. 

VIU is focused on making thoughtful, strategic decisions that balance deficit mitigation commitments with the goal of minimizing impacts on the community and students. 

• Budget templates will be shared with area leaders. 

• Employee and student surveys in late February/early March 2025. 

• Discussions with VIU Planning & Priorities Committee of Senate 

• Further consultation with Finance, Audit & Facilities committee of the Board (February to May 2025) 

• A final budget recommendation will be presented to the Board of Governors on June 3, 2025. 

VIU's deficit mitigation plan includes a commitment to reducing expenses by $18 million by March 2026 to meet the Ministry’s expectations. By the end of the 2024-25 fiscal year, we forecast achieving $6.35 million in reductions, leaving a remaining target of $11.65 million to be met in the 2025-26 fiscal year.

Feedback can be submitted via budgetfeedback@viu.ca.

VIU has seen a 27% decrease in staffing positions since the implementation of the deficit mitigation plan. A hiring freeze for faculty and staff is in place starting February 2025, with exceptions evaluated by the executive budget committee.

When VIU first recognized the structural deficit in 2019-20 VIU we saw a 6% reduction in total student FTE and only a 2% reduction in staff FTE. There remains a significant gap between the number of enrolled students versus staff compared to the start of our structural deficit creating further financial strain. 

Yes, employee retention is always a concern. VIU faces competition from higher-paying opportunities elsewhere, and remote work options have made it easier for staff to take jobs without relocating. While we continue advocating for fair compensation, our financial constraints limit what we can do. The challenge is balancing budget realities with maintaining a strong workplace culture.  

Our top priority remains delivering high-quality education and advancing our core mission. As we navigate change, we will focus on sustaining academic excellence while identifying opportunities to improve operational and organizational efficiencies. By streamlining processes, optimizing resources, and fostering collaboration, we can enhance our effectiveness without compromising the student experience or the integrity of our programs. 

VIU is implementing a Strategic Enrolment Management Plan to enhance recruitment, retention and student success. Domestic recruitment is currently the strongest it has been in years, although international enrolments have declined due to external factors. 

For Fall 2024, international graduate enrolments declined by 36% and undergraduate enrolments by 10%. Factors include global competition and increased barriers for international students in Canada. 

VIU has seen a 60% decrease in new graduate students, a 48% decrease in new undergraduate and development programs, and a 7% decline in continuing students, equating to 384 fewer international students. 

Since domestic student tuition increases are capped at 2%, the primary way to increase revenue is by increasing enrolments. 

In 2022, the Province of British Columbia committed $87 million in funding for VIU’s student housing project. However, due to rising construction costs driven by inflation, supply-chain disruptions, and labor shortages, VIU reviewed project proposals and paused construction to adjust the budget. In 2024, the provincial government approved an increase in funding to $102.8 million, and construction officially began in November 2024. 

The new student housing will provide much-needed accommodation for VIU students, enhancing accessibility and affordability for those attending the Nanaimo campus. By expanding on-campus housing options, the project aims to alleviate local rental market pressures while creating a vibrant living and learning environment. The project remains a priority for the university as part of its commitment to student success and well-being. 

n January 2020, VIU secured funding through ChildCareBC’s New Spaces Fund to support the construction of a new childcare centre at the Nanaimo campus. The university then sought additional partners to help fund the project, and work began in 2023. However, rising construction costs due to inflation, supply chain disruptions, and labour shortages affected projects across the country, including in BC. Shortly after construction began, it became clear that the project would exceed its budget, with no viable way to absorb the additional costs. As a result, VIU and the builder mutually agreed to terminate the contract. The work completed before the stoppage has been backfilled to prepare the site for potential future development. VIU has also returned all ChildCareBC New Spaces funding received to the government. 

Our institution has a standard moving allowance guideline that applies to all employees, including CUPE members. The relocation support is relatively modest (approximately $2,500 for in-province moves and $5,000 for out-of-province moves) totalling around $40,000 to $50,000 annually for all employees. Given these figures, relocation costs are not a significant area of financial concern in addressing our deficit. Recruitment agencies are only used for hiring administrators, not faculty or CUPE staff. 

Yes, and we are actively doing so. While some roles, such as recruiters, require travel, we are reducing discretionary travel. Faculty travel within collective agreement commitments for conferences remains important for professional development, but we encourage remote options where possible. Senior leadership has been instructed to minimize travel expenses. However, when required by the Ministry, travel remains necessary. 

VIU follows a standardized compensation model set by the Post-Secondary Employers’ Association, ensuring pay consistency across institutions. However, we recognize the need to reduce administrative costs and have already begun eliminating excluded administrative positions as part of deficit mitigation efforts. These reductions will continue in alignment with our financial realities. 

We are actively reviewing administrative structures and making necessary reductions. While there is no immediate plan for an external audit of senior management, we have commissioned a report through the Canadian Association of University Business Officers. We have not yet reviewed its findings but will evaluate them carefully. 

Program reductions are part of our broader expense-cutting efforts, but we recognize the value of aligning programs with regional strengths. We are also exploring partnerships with community organizations to provide outdoor experiences for students without requiring direct institutional funding.