BU faces fiscal pinch due to pandemic and drop in students

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This article was published 25/11/2024 (297 days ago), so information in it may no longer be current.

Brandon University is facing financial challenges, including a $9.6 million structural deficit, primarily due to COVID-19 impacts and reduced student numbers says David Docherty BU’s president.

“It’s not a yearly deficit,” Docherty said, “it’s a debt we owe ourselves, not money that we owe the banks and that’s an important distinction.

“Some of that $9.6 million was a loss of revenue during Covid when the students weren’t coming, and residence was losing money. So, we had some money surplus that we were spending, but it prevented us from doing other things,” said Docherty.

Docherty spoke with the Sun during a break in this month’s Board of Governors meeting held at the university Saturday morning. It was the last meeting of the year, with the next one scheduled for Jan. 25, 2025.

Included in the meeting were numerous reports, including those submitted by the BU Foundation, the Senate, Student’s Union and finance committee.

Peter Hickey is vice-president, administration and finance and a relative newcomer to Brandon. He started at the university Sept. 1, 2024.

In his financial report, Hickey outlined what he saw as five key challenges for BU. The $9.6 million structural deficit was number one, followed by the need to find a new software system for staff and students.

Additionally, Hickey said that because of years of successive budget cuts and not replacing staff who retired, there are “critical administrative deficiencies” across the campus.

Under the heading of health and safety, it was stated that several areas on campus need security camera upgrades, “based on BU’s commitment to providing a safe environment,” wrote Hickey.

Examples of physical plant project updates in Hickey’s report included a new gymnasium floor in the Health Living Centre.

Another item that has been a priority for BU is renovations of the Brodie Science Building and the construction of a new research annex that will house a satellite campus of the University of Manitoba’s Max Rady College of Medicine.

In addition to Hickey’s report, he submitted two budget estimates, one for 2025-2026 and another three-year estimate, up to the year 2028, which was requested by the provincial government.

“These budget estimates are the first stage of the budgeting process,” Hickey said. “It’s being transparent to the province that we have these needs, and where we will see expenditures increase.

“So, this year, it only be 2025-2026 budget that gets finalized, but for the first time, the government has requested a three-year forward outlook, because they’ve provided a three-year commitment to 1.5 per cent increase in grants, as well as dictating a 3.5 per cent maximum on tuition for three years,” said Hickey.

In May 2024, Premier Wab Kinew announced $7.4 million in funding for BU beyond what was promised in this year’s budget, which was presented a month earlier in April.

While Docherty told the Sun he was thankful for the extra cash injection, he said “we also went through years where it was not keeping up with inflation.”

“Through COVID, we were given zero per cent grant, yet our student numbers were going down, inflation was running through the roof, and we weren’t filling residences,” Docherty said.

Included in the registration report from the registrar’s office, overall head count is down 2.7 per cent over the same point last year.

The number of Indigenous students is up 4.4 per cent when compared to last year. There is a small decrease in domestic, non-Indigenous students of 1.2 per cent. But the most significant loss is in international students, with a decrease of 15.2 per cent.

“International was the real hit,” said Docherty. “Yes, we’re having fewer students that have higher needs, but if we can address those needs, they’ll stay longer, they’ll stay four or five years and graduate. If we don’t address them, they’ll leave after a year, and that’s where the losses come in.

So, if we can invest in a couple of student counsellors, which we’ve talked to the province about and agreed upon, hopefully our retention of these students will be stronger,” Docherty said.

“The university is aware of our challenges as is the province, and we’re not taking them lightly, and this is part of the process of addressing them.”

» mmcdougall@brandonsun.com

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