Addressing our financial challenges together
At Queen’s University, we are committed to our academic mission of excellence in research and teaching. To ensure we can continue to deliver on these priorities, we are addressing our current financial challenges together, as one university. While some of the choices ahead will be difficult, we are focused on finding sustainable solutions, and we will emerge a stronger, more resilient institution.
Our projected operating budget deficit sits at approximately $41 million as of March 2024. This is down from initial projections of $62 million due to the measures put in place over the previous year as part of our balanced budget plan.
Budget background
Queen's announced a signficant budget deficit in spring 2023. Like other universities in Ontario, Queen's has been experiencing growing financial pressure due to a provincial tuition cut and freeze for Ontario students that has cost the university an estimated $180 million as of spring 2024. We are also experiencing a decrease in international student enrolment that began during the pandemic, and increasing costs and inflation have added to the budgetary strain.
Returning to a balanced budget
The Balanced Budget Plan aims to return the university to structural balance over the next two years. Measures that have been implemented so far include a university-wide hiring freeze, voluntary retirement and early exit incentives, base budget reductions across the board, general spending reductions in areas like travel, technology, and procurement, operational improvements such as sharing of services and expenses, joint investments, and new campus partnerships.
The Strategic Implementation and Operations Task Force, with representation from the faculties and central services (or shared services), has been created to guide budget reduction initiatives and facilitate integrated conversations across Queen's.
Balanced Budget Plan measures
Hiring freeze
A hiring freeze for full-time positions will help us achieve savings, while requiring us to smartly manage workloads and simplify or limit projects.
Voluntary retirement and exit initiatives
For faculty, librarians, and archivists: A Voluntary Retirement Plan encourages eligible members to retire early, reducing salary costs and paving the way for academic renewal.
For Faculty of Arts and Science staff: A pilot Voluntary Exit Initiative offers a lump sum payment for eligible staff and could potentially be extended to other departments if necessary.
Reduced base budget allocations
We are reducing base budget allocations across the university over the next several years. For faculties, reductions to base budgets will be phased in over the next three years, starting at four per cent for 2024-25.
Savings from these faculty reductions will go into a Deficit Mitigation Fund which will largely support the Faculty of Arts and Science as it works to return to a balanced budget by the end of the 2025-26 fiscal year. All other faculties have until the end of the 2024-25 fiscal year to achieve balanced budgets. For more on the Faculty of Arts and Science (FAS), visit the FAS Operating Budget Deficit Updates webpage.
Queen’s central services portfolios (or shared services) are also reducing their base budget expenditures over the next two years at a rate of 1.5 per cent for both 2024-25 and 2025-26. In addition, all shared services are directed to reach a balanced budget at the conclusion of this current fiscal year (2023-24).
Spending reductions and operational savings
We have implemented general spending reductions and prudence in areas like travel and technology purchases, procurement and purchasing. We are also finding cost savings in operations through new campus partnerships, sharing of services and expenses, and joint investments wherever possible.
We are coordinating operational improvements that include fixing disconnected or inefficient processes and eliminating duplicated activities. This will allow us to address challenges and better support our students, faculty, and staff.
Combined, these efforts should both reduce costs and allow us to use our existing resources more efficiently.
Financial overview
Discover more on the Queen’s financial publications page, including our annual financial statements, annual budget reports, financial projections, and a set of detailed financial FAQs:
Financial Services publicationsQueen’s Renew Project
Distinct from the Balanced Budget Plan, the Queen’s Renew Project aims for long-term financial health so we can invest more in our academic mission into the future.
This work will focus on finding structural efficiencies and ensuring professional services staff are well supported with effective tools, systems, and processes.
Learn more about this work on the Queen's Renew Project page, including details on surveys and data collection and FAQs:
Queen’s Renew ProjectGazette Articles
May 01, 2024
Morningstar DBRS releases Queen’s University credit ratings
AA rating unchanged and expected to remain stable through the medium term.
Apr 22, 2024
S&P Global Ratings releases Queen’s University credit ratings
The university’s rating has remained unchanged at AA+, signifying a stable long-term outlook.
Mar 26, 2024
Voluntary Exit Incentive for Faculty of Arts and Science staff
Pilot program allows eligible Arts and Science staff to exit roles in exchange for lump sum payment.