Understanding the Holt Liberals' Bold Proposal for New Brunswick's Higher Education Landscape

The New Brunswick Liberal government under Premier Susan Holt has ignited a fierce debate in the province's higher education sector with a discussion document outlining drastic restructuring measures. Presented to university and community college presidents in mid-February 2026, the two-page memo proposes slashing post-secondary education funding by $35 million to $50 million. This comes amid a projected provincial deficit of $1.3 billion for the 2026-27 fiscal year, prompting calls for 10-15% savings across all government departments.

Key scenarios include reducing the number of publicly funded universities from four to two—primarily the University of New Brunswick (UNB) and Université de Moncton (UdeM)—while considering the privatization of Mount Allison University (MtA) and the closure or merger of St. Thomas University (STU) into UNB. These ideas are framed as options for institutions to respond to ahead of the March 17 budget. No final decisions have been announced, but the proposals have already sparked widespread concern about access to education, regional economies, and the future of small liberal arts institutions.

Financial Crisis Gripping New Brunswick's Public Finances

New Brunswick, with a population of approximately 860,000, faces mounting fiscal pressures exacerbated by declining enrollment in post-secondary institutions and reliance on international students, now capped federally. The Holt government, elected in a landslide in October 2024, inherited challenges including stagnant economic growth and rising expenditures. Premier Holt has emphasized 'difficult decisions' to stabilize finances, with the post-secondary sector targeted due to its significant provincial grants—totaling hundreds of millions annually across universities.

The province's four public universities—UNB, UdeM, MtA, and STU—along with New Brunswick Community College (NBCC) and Collège communautaire du Nouveau-Brunswick (CCNB), operate over 20 campuses. Critics argue this infrastructure is unsustainable, prompting suggestions to tie operating grants directly to student numbers and graduate retention rates. For context, MtA alone receives about $27.5 million in provincial grants yearly, contributing over $190 million to the economy, mostly from out-of-province sources.

Spotlight on St. Thomas University: Potential Merger with UNB

St. Thomas University (STU), a Catholic liberal arts institution in Fredericton adjacent to UNB's main campus, enrolls around 1,700 students, many in journalism, criminology, and social work programs. The proposal suggests folding STU into UNB, relocating students and repurposing the campus—possibly for other uses. STU President Dr. M. Nauman Farooqi stressed in a community email the 'positive economic and social impacts' of higher education, warning against overlooking long-term returns on investment like graduate retention and career contributions.

Students, represented by STU Student Union Vice-President for Education Camila Baquerizo Bayona, decried the lack of consultation, calling it 'completely crazy' and disrespectful to communities built around the university. A merger could eliminate unique programs, lead to faculty layoffs, and disrupt Fredericton's educational ecosystem.

Mount Allison University: Path to Privatization?

Nestled in Sackville, Mount Allison University (MtA) is renowned as Canada's top undergraduate university per Maclean's rankings for 26 years running, thanks to small classes and hands-on learning. The scenario envisions ending provincial funding and providing a 'transition trust fund' to establish it as an 'independent Canadian premiere university.' MtA President Ian Sutherland assured stakeholders of 'constructive collaboration,' while spokesperson Jonelle Mace noted no formal directive has been received.

Privatization would shift MtA to full tuition reliance, potentially raising fees and limiting access for low-income New Brunswickers. Sackville's economy, tied to the university, could suffer from reduced student spending and jobs.

Reactions from University Leaders and Stakeholders

UNB President Dr. Paul J. Mazerolle affirmed partnership with government to recognize public universities' value. UdeM's statement defended its three campuses as vital for French-language education in a bilingual province. Collectively, the sector generates $330 million in economic impact and $50 million in taxes annually.

• Positive aspects highlighted: Student retention, skilled workforce development, export revenue.
• Concerns: Rushed timelines, lack of vision, threats to institutional autonomy.

Post-Secondary Minister Jean-Claude D’Amours clarified the document sparks discussion, with institutions proposing efficiencies like property tax sharing with municipalities.

Regional and Economic Ramifications

NBCC faces campus mergers, affecting rural areas. Closing STU or privatizing MtA could devastate Fredericton and Sackville—small towns where universities anchor employment and vitality. Broader PSE cuts might exacerbate Canada's higher ed challenges, mirroring Ontario's tuition freeze lifts and Laurentian University's 2021 creditor protection, which led to program cuts and faculty losses.

For students, disruptions mean program uncertainty; faculty face job insecurity. Yet, proponents argue consolidation strengthens flagships like UNB, enhancing research and offerings. Explore higher ed jobs in stable institutions amid changes.

Lessons from Canadian Higher Education Restructurings

Laurentian University's insolvency forced 70+ program closures; Memorial University cut remote campuses. In NB, past consolidations like UNB's Saint John campus expansions offer models. Alternatives include:

• Performance-based funding increases.
• Targeted intl student exemptions.
• Public-private partnerships without full privatization.

Laurentian case study (CBC) underscores consultation's importance.

Pathways Forward: Solutions and Optimism

Solution-oriented voices suggest efficiencies like online program sharing, alumni endowments, and federal aid advocacy. Institutions could propose enrollment-boosting initiatives. For academics, higher ed career advice emphasizes adaptability—consider Canadian academic jobs.

Looking Ahead to the March Budget

With cabinet review imminent and budget on March 17, watch for moderated cuts. Rate professors at Rate My Professor or seek university jobs. NB's higher ed resilience offers hope for balanced reforms benefiting students and economy.

For comprehensive NB opportunities, visit faculty positions and admin roles.

Photo by Mahmudul Hasan on Unsplash