Algonquin College is dipping into reserves to cover a $34.8 million budget deficit next school year, as the Ottawa college continues to deal with a tuition freeze and a sharp decline in international student enrolment.
The board of governors approved the $479 million 2025-26 school year budget Tuesday afternoon, using $41 million in reserves to cover the multi-million-dollar budget deficit and to support projects and initiatives at the college for the next school year.
“The 2025-26 proposed annual budget presents the financial resources required to operate the programs and services of the college over the next fiscal year while also resourcing essential capital investments and other strategic investment priorities projects,” Algonquin College said in the budget presentation.
Staff say enrolment is projected to drop 11 per cent in 2025-26, “primarily driven” by a projected 40 per cent decrease in international students.
The business plan shows that while full-time domestic enrolment will increase nearly 1,300 students to 35,800 for 2025-26, full-time international enrolment will fall from 17,646 students this academic year to 10,500 students in the fall.
Algonquin College is expecting international student enrolment to drop by an additional 1,766 students in 2026-27.
Earlier this year, Algonquin College approved a plan to suspend 41 programs and close the Perth Campus due to the decline in international enrolment.
“Like many institutions across the post-secondary sector, we face considerable financial challenges,” Algonquin College President Claude Brulé said in the college’s business plan. “A prolonged provincial tuition freeze, chronic underfunding, and recent federal immigration policy changes affecting international enrolment have created unprecedented pressures.”
Tuition levels remain frozen at 2015 levels, according to the college.
In January 2024, the federal government announced a temporary two-year cap on international student levels by 35 per cent. Last September, the government announced new international student study permits will be reduced by another 10 per cent to 437,000 permits, with the target continuing into 2026.
Ontario’s colleges are required to prepare an annual budget and business plan, with it submitted to the Ministry of Colleges, Universities, Research Excellence and Security by June 30.
Despite the multi-million-dollar deficit, the college says students will “benefit from additional investments in technology infrastructure, renovations and adaptations to learning spaces” and “investments in new program development, academic equipment and new facilities.”
Algonquin College says it will open cutting-edge science laboratories at the Ottawa campus to respond to “increased demand with existing programs” and to provide opportunities to create new programs in the future.
Algonquin College’s 2024-25 budget was $564.9 million.
Sussex Drive
Algonquin College is leaving Ottawa’s ByWard Market as part of a plan to address the projected financial deficits.
The business plan includes exiting the Corporate Training facility at 700 Sussex Dr., according to the plan.
Algonquin opened the 8,800 sq. ft. space in 2020, saying the corporate training facility will “serve employers and individuals looking for retraining, skills upkeep and development.”
