The Roots of UFV's Financial Strain

The University of the Fraser Valley (UFV), a key teaching-intensive institution in British Columbia serving over 12,000 students across campuses in Abbotsford, Chilliwack, Mission, and Hope, is grappling with a projected deficit exceeding $20 million for the 2026/27 fiscal year. This crisis stems primarily from a sharp decline in international student enrollment, a revenue stream that has long subsidized domestic education and operational costs. International tuition fees, often four times higher than domestic rates, accounted for a significant portion of UFV's budget, with nearly 3,000 international students comprising 18% of the total population in the 2024/25 academic year. However, federal policy shifts have triggered a 25% drop in international full-time equivalents (FTEs), far worse than the anticipated 10%, leading to a $5.1 million shortfall already in 2025/26.

Federal government measures, introduced in 2024 to cap study permits at 437,000 nationally for 2025 and further reduced to 408,000 for 2026—a 7% cut—aimed to address housing pressures and sustainable immigration levels. These caps, coupled with higher financial proof requirements ($20,635) and slower visa processing, have resulted in new international arrivals plummeting 74% from January 2024 to January 2026 nationwide, with B.C. seeing a 66% drop in approvals. At UFV, projections show international FTE falling to 2,080 in 2025/26 from higher previous levels, heavily India-dependent (79% mix).

Federal Caps: A Nationwide Higher Education Challenge

Canada's higher education sector relied on international students for up to 45% of revenues at some institutions, funding scholarships, facilities, and domestic subsidies. The 2024 cap represented a 35% reduction from prior levels, with 2025 seeing 37% fewer new arrivals (11,215 to 7,040 month-over-month). This has cascaded into deficits across provinces: Ontario colleges suspending dozens of programs, B.C. institutions like Kwantlen Polytechnic University (KPU) forecasting $88 million revenue loss, and widespread layoffs at Humber, Conestoga, Keyano, and Camosun College. UFV's situation mirrors this, with its 2025/26 consolidated budget balancing at $202.2 million only through domestic growth and one-time grants, but ancillary deficits and future pressures loom.

The policy's intent—to curb temporary residents to under 5% of population—has unintended consequences for post-secondary institutions, rural economies, and workforce training. B.C. allocated one-third of its international seats to private schools, destabilizing public universities further.

Breaking Down the Revenue Shortfall

UFV's 2025/26 budget reveals the fragility: student tuition/fees at $91.4 million (45.2%), down $0.2 million despite 2% domestic hikes, with international down $1.2 million. Government grants ($87 million, 43%) cover domestic FTE targets (6,823), but no inflation adjustments. Salaries/benefits dominate expenses at $148.1 million (73.2%), prompting workforce reviews.

• International FTE drop: 73 from 2024/25 interim, to 22% total (below 30% cap).
• Domestic FTE: Up to 7,439, targeting 99.9% ministry goal via nursing/tech expansions.
• Ancillary deficit: $157,000 from partial housing occupancy.

Without recovery, 2026/27's $21.4 million gap threatens core functions.UFV's official 2025/26 budget plan details these projections.

Layoffs and Workforce Adjustments

In February 2026, UFV announced 45 layoffs: 6 teaching faculty, 4 non-teaching faculty, 35 staff, plus 3 workload reductions. Advance notice began March 12, with staff notices ending April 20-24 and faculty August 1. "Silent layoffs" via non-renewed sessional contracts add to impacts. The Faculty & Staff Association (FSA) notes community anxiety, with Greg Mather stating layoffs are "unavoidable."

Photo by Pete Alexopoulos on Unsplash

Voluntary Departure Program: A Mitigation Tool

UFV's Voluntary Departure Program (VDP), launched November 2025, offered incentives (2 weeks' pay per seniority year, min 16/max 36 weeks) to eligible continuing employees (8+ years seniority). 60 expressions of interest; 52 offers, 36 accepted (11 teaching faculty, 16 staff, etc.), last day May 31, 2026. This reduced involuntary cuts, supported by FSA memorandum.VDP Memorandum of Agreement.

Impacts on Students and Academic Programs

Students face potential program cuts, delayed graduations, and reduced services. Student Union President Bilal Faisal calls for tuition caps; rep Angelina Joseph criticizes poor communication. Leadership prioritizes core teaching, but quality may suffer. New housing (398 beds) aims to attract domestics, but partial occupancy strains ancillaries.

Stakeholder Perspectives and Reactions

President Dr. James Mandigo emphasizes community unity: "Smart, dedicated people looking at this with care." CFO Nicole Adams notes faculty impacts but cautions on specifics. FSA's Mather urges checking on colleagues. Broader sector echoes pain, with Universities Canada highlighting billions in losses.

• FSA: Bargaining upcoming, mitigation discussions.
• Students: Demand transparency.
• Province: Post-secondary review announced November 2025.

Broader Implications for Canadian Higher Education

UFV's crisis reflects national trends: 50%+ enrollment drops at some schools, program suspensions, campus closures in rural B.C. Ontario faces $1.8B sector loss; Atlantic Canada 36% plunge. Impacts local economies dependent on student spending.

Photo by Ezekiel See on Unsplash

Strategies and Future Outlook

UFV's response: Spending freezes, contract reviews, land development via UFV Properties Trust for revenue. Tuition hikes, domestic growth targets (20% by 2030), international diversification. Balanced 2026/27 budget targeted for March 26 Board approval. Long-term: Policy advocacy, efficiencies, SEM plan alignment.UFV Financial Sustainability updates. Optimism via grants, housing, but sustained intl recovery key.

Lessons for Sustainability in Canadian Universities

Diversify revenues, cap intl dependency, enhance domestic appeal. UFV's proactive VDP, transparency town halls (e.g., March 5, 2026) model resilience. As federal review looms, balanced immigration-housing-ed policy needed.