Dalhousie University facing forecasted $18M budget shortfall, freezes hiring

In an attempt to help plug an estimated budget shortfall of about $18 million, Dalhousie University has implemented a hiring freeze that is expected to last until at least the end of March 2025. 

The freeze began on Sept. 4, according to the school's human resources website. It affects regular and ongoing positions, in addition to term, temporary and casual faculty and staff positions. 

The university attributes the deficit to international enrolment that's forecasted to be 20 per cent lower than budgeted, according to an internal email obtained by CBC News.

"Our international student enrolment declines have occurred over several years and each smaller cohort remains with us until graduation," said Dalhousie University president Kim Brooks in the email.

"We need to reverse this trend or scenarios for future years worsen."

Brooks said the university will need to be "judicious" with travel and other kinds of discretionary spending. "This is not a one-year problem." 

According to Dalhousie's 2024-25 budget report, international undergraduate enrolment fell by 16 per cent from 2018 to 2023. 

The report also pointed to inflation as a challenge, saying it "continues to impact operating expenditures, particularly the cost of negotiated salary settlements." 

Dalhousie's financial woes come against the backdrop of the federal government's two-year cap on international student permits, announced in January. Then last week, Ottawa said it would cut permits by a further 10 per cent.

The executive director of the Association of Atlantic Universities said the federal government's decisions create a challenging financial situation for universities. 

Peter Halpin told CBC Radio's Maritime Noon that universities have had to turn to other sources of revenue — like international students — as operating funding from provincial governments has generally been below the rate of inflation. 

"Provincial governments seem to be less and less inclined to invest in our public universities," Halpin said.

In February, the Nova Scotia government announced a two per cent tuition cap for Nova Scotia undergraduate students, and funding levels that were below last year's rate of inflation. 

Dalhousie's 2024-25 operating grant was frozen at the same rate as the previous year.

In a statement to CBC News, a Dalhousie University spokesperson said recent "geopolitical and government policy changes have intensified" the trend of declining international enrolment. 

The Dalhousie Faculty Association and the Dalhousie Student Union declined to comment, citing ongoing discussions with the university.