International students once pumped millions into B.C. schools, but revenue has collapsed during pandemic

Amanda Carrasco's international student hosting company, Harmony Homestay, expected 2020 to be her biggest year ever, but the pandemic blocked most K-12 international students from travelling to Canada.

"COVID completely wiped that out. We did have one student who was able to come [in September] but that was it," she said.

Another 39 arrived in January.

"It's a significantly lower number than normal," she said.

The number of international student in B.C. schools this academic year remains far below pre-pandemic levels, which means districts have lost out on millions in revenue.

Tuition from the international education program has become an important part of many B.C. school district's funding models and the pandemic has revealed just how unstable that model is.

Million-dollar revenue stream

In West Vancouver, the school district earned $10 million from international student tuition in the 2019-2020 school year, accounting for 13 per cent of its total operating revenue.

Other districts with popular international programs like Coquitlam, Burnaby and Vancouver all received more than $25 million each.

West Vancouver school district superintendent Chris Kennedy admits it's an important part of the budget and, this year, the district lost out on about 40 per cent of that tuition money.

"We've been trying to work hard in our district to not make it part of core funding but to make it part of enhancements and enrichments for all of our students," said Kennedy.

But he admits that's not always the case and sometimes the district has to use the revenue to make up for gaps in provincial funding.

"I think probably some of it leaked into core programming over time, for sure. That's a fair bit of money."

He says that if the international program were to suddenly disappear, it would have a large impact — not on the core programming, but to everything else.

"Families in West Vancouver have come to expect high-quality programs, with lots of options for students, with brand new equipment in school and international education has helped us continue to offer those kinds of services," said Kennedy.

But not all schools take the same approach.

In Surrey's school district, the international student program is capped at two per cent of the total student population due to demand for school spaces in the fast-growing region. Even so, the program generated almost $16 million for Surrey Schools during the 2019-2020 school year. 

Superintendent Jordan Tinney says losing some of that revenue has been difficult.

"It's a hit, but our board is not reliant on international education to fund the operation of the district," said Tinney.

He says that funding paid for 71 extra staff — 51 of whom were teachers — and helped schools buy new equipment like laptops, projectors, sewing machines and athletic and woodworking equipment.

Unstable funding revenue, says researcher

International student programs have been an important stream of revenue for school districts for the past 20 years. 

As schools experienced decreases in enrolment, they also saw a decrease in operating funds because provincial contributions are based on enrolment numbers, says Andree Gacoin, director of information and research with the B.C. Teacher's Federation.

"When domestic student enrolment decreases you might have fewer students in the schools but you still have the same costs to keep that school [running] … so the costs weren't decreasing at the same rate," she said.

Districts were forced to look elsewhere for that money.

Now it's become a part of the regular funding model, but Gaocin says the model is built on unstable ground because tuition fees can fluctuate due to circumstances beyond the school districts' control, such as a global pandemic.

"That obviously is going to be felt in terms of the reliance they've built on the system to be able to have those enrichment activities."

As well, the international student program unintentionally creates inequality between districts that attract a large number of students and those that don't.

"While international funding makes up about five per cent of the total revenue across the province, it is mostly held by ten districts, mainly in Metro Vancouver and Greater Victoria," says Gacoin, adding these regions have robust recruitment programs and are often seen as the most desirable locations by foreign students. 

Those districts enjoyed extra funds to offer enriched programs, while students in other regions of the province didn't get to reap those same rewards, she says, or participate in the benefits of a culturally diverse learning environment.

Pandemic brought about a shift

As school districts across B.C. prepare their budgets for next year, many have predicted budget shortfalls up to $40 million. Some districts have attributed those shortfalls to the decrease in international students, among other things.

Superintendent Kennedy predicts the pandemic has brought new clarity to many districts about the fragility of the international education system.

"I think coming out of the pandemic there will be a real shift in our district and elsewhere in ensuring that international monies are seen to be more for the above and beyond and not for the core funding," he said.