Message from the President and the Vice-President Administration and Finance
The following message was also emailed to UPEI students, faculty, and staff on May 28, 2025.
Dear UPEI Community,
At its meeting on May 27, 2025, the UPEI Board of Governors approved a balanced operating budget for the 2025–2026 fiscal year. We are pleased to share some of the context that has gone into UPEI’s budget plan and invite you to review it on the upei.ca website
A comprehensive and consultative process during a pivotal period
Planning for the UPEI operational budget began in the fall in preparation for the beginning of the 2025–2026 fiscal year, which began on May 1. It is a consultative exercise that involves the Finance, Audit, and Risk Committee of the Board of Governors, senior executive team, deans, chairs, and directors of the University.
We are at a particular time in the history of the University where, in addition to the typical budget pressures like inflation, we are being challenged by federal immigration policies, which have negatively affected universities across the country.
With these factors as a backdrop, the priorities for the development of UPEI’s 2025–2026 operating budget focused on the application of short-term and longer-term fiscal strategies, implementation of the UPEI Action Plan, and provision of excellent supports to support student success.
The impact of federal government policy changes
UPEI has demonstrated sound financial stewardship supported by a stable financial environment for some time. However, since 2024, UPEI has been significantly challenged by the negative impacts resulting from policy changes implemented by the federal government department of Immigration, Refugee and Citizenship Canada (IRCC) regarding international students. At many other universities in Canada, these changes have resulted in severe budgetary restrictions, including but not limited to program cancellations and a reduction in both academic and non-academic staff complement.
Additionally, over the last decade, on average, Canadian universities have shown a revenue-expense gap of about 2 to 4 per cent, in many cases addressed by a reliance on revenue from international students. Comparatively, UPEI’s revenue-expense gap is quite small at less than 1 per cent.
UPEI's key challenge is the reduction in first-year international enrolment by approximately 50 per cent in 2024–2025, resulting in a revenue loss of about $3 million. First-year international enrolments are projected to decline further in 2025–2026 for a further loss of $3 million. This is the main cause of UPEI’s revenue-expense gap.
The way forward: a mix of short-term and long-term strategies
Through the application of budget strategies developed collaboratively and transparently with University leaders, and with support from the Government of Prince Edward Island, we have achieved a balanced budget for 2025–2026, without the immediate need for severe restrictions or cuts.
For the 2025–2026 operating budget, we implemented short-term, one-time savings and expense constraints available to us, including deferring most strategic priorities and taking advantage of one-time cost reductions in some areas. We also implemented more enduring strategies such as increasing targets for domestic and international recruitment and retention and implementing competitive increases in domestic and international tuition, while currently maintaining the lowest tuition in the region. UPEI has initiated a review of its academic offerings and curriculum planning from the perspectives of optimizing student experience by reducing the complexity of curricular paths, and by taking a mission-centric and fiscally responsible approach to delivery of curricula.
In 2025–2026, UPEI will continue to look for mission-centred fiscal tactics, including strategic vacancy management. This means leaders will work collaboratively to evaluate vacancies occurring by attrition to balance financial, operational, and strategic goals. We will focus on sustainable growth in revenue streams including professional development and ancillary services (e.g., residence, food services, conference services, and implementing endowment management fees for the first time in decades).
Maintaining the focus on student success and improving culture
UPEI will maintain its focus and momentum implementing the UPEI Action Plan to improve the University’s culture, and the continued provision of excellent student supports to optimize student success. UPEI is committed to achieving financial sustainability and the responsible stewardship of public funds and student tuition. This will require dedicated attention and deliberate fiscal stewardship in 2025–2026 and going forward.
Many thanks to the University leadership, our broader community and partners, such as the Government of Prince Edward Island, for ongoing support in our efforts to enhance our student experience, our campus culture, and our academic and financial sustainability.
Wendy Rodgers
President and Vice-Chancellor
Tim Walker
Vice-President, Administration and Finance
