Fanshawe College cuts costs amid 'uncertainty' from federal cap on international students
London, Ont., school also seeking a provincially funded third-party review of its finances
Fanshawe College's president says the Canadian government's limitations on international student enrolment are hurting the London, Ont., school's budget. It's led him to cut costs in areas including workshops, travel, professional development and new hires.
Peter Devlin announced he is seeking a provincially funded independent third-party review of Fanshawe's financial operations to help the college proactively manage financial challenges expected in the years to come.
"For this fiscal year, Fanshawe will be able to continue supporting strategic investment. However, as we look ahead, we are anticipating significant budget challenges," Devlin said in a video posted to Fanshawe College's Youtube channel on Tuesday.
"Things have shifted quite a bit and unfortunately, there is now more uncertainty than ever before. This review, expected to be funded by the provincial government, will help us take a closer look at our operations, ensuring that we stay effective while carefully managing costs."
The spending cuts and audit follow federal immigration Minister Marc Miller's announcement from Sept. 18, which said Ottawa will slash the number of international student permits it issues by another 10 per cent, with a target of 437,000 permits for 2025 and 2026.
The audit will focus on five key areas which involve governance, administrative and student services, academic programming, physical assets and facilities, collaborative procurement opportunities and revenue generating opportunities, Devlin said in the video.
Cost-cutting measures will also include a tighter management of expenses related to retreats, capital expenditures and a careful review of any new hires at Fanshawe, he added.
A Fanshawe spokesperson declined an interview request on Thursday.
Ontario's Ministry of Colleges and Universities told CBC News that "Fanshawe College may be eligible to receive up to $500,000 to put toward the costs of this third-party review if their proposal to the Ministry is approved."
IRCC changes to continue international student decline
Earlier this year, the government announced a temporary cap to reduce the number of new student visas by more than a third this year. Starting in 2025, master's and doctoral students will also be counted as part of the cap.
Miller said the government expects the changes to "yield approximately 300,000 fewer study permits" over the next three years at Immigration, Refugees and Citizenship Canada (IRCC).
International students are a major economic driver, providing hundreds of millions of dollars in tuition for the country's universities and colleges. Devlin said the international student enrolment at Fanshawe was 35 per cent less than expected this fall and announcements from IRCC indicate that it will continue to drop.
"Frequent and unpredictable changes from IRCC have made it harder for Canada to attract international students to learn, live and grow here," he said.
Devlin is the latest of post-secondary leaders expressing concern over the cap. Last week, Western University's president Alan Shepard authored an op-ed in the Toronto Star, explaining how cutting off international students will negatively impact Canada's future.
"For us that's a huge concern because the 'everybody' includes those who are the brain trust of the next generation," Shephard told CBC's London Morning last week.
"[These are the] most exceptional students doing the most advanced work and make the biggest contributions to our university's intellectual climate. [They] have the potential to make a really extraordinary contribution to Canada."
Although Western is not impacted by the caps, Shepard wants the government to pause its plans and do a thorough review of how immigration is being done with international students, which he argues haven't yet happened.
"The longer-term implications that are worrying to all of us is that the next generation of international students and of our immigrants are going to stay home, or they'll go to other countries instead of coming to Canada," he said.
Although domestic enrolment at Fanshawe is strong, Devlin said he's actively working with all levels of government to advocate for the importance of investing in post-secondary.
Devlin said the provincial review, if approved, will begin this fall and is expected to wrap up by spring, adding that he will have an update on the situation by mid-November.
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With files from CBC's J.P. Tasker, Deana Sumanac-Johnson and The Canadian Press