Like us next month after racking up mountains of holiday season credit card debt, Ontario’s colleges are reining in their spending.
Driving the news: Ontario colleges have cumulatively spent $752 million less in the first half of the 2024-25 fiscal year compared to the same period last fiscal year. And it’s not because of prudent bookkeeping; it’s because revenue has gone dry as foreign students dwindle.
- We are of course referring to the federal cap on foreign post-secondary students to slash the number of approved study permits by 35% this year.
Big picture: This new number comes amid news that colleges are cutting programs, staff, and facilities. Sheridan College announced it is pausing 40 programs, Mohawk College laid off 20% of its admin team, and Seneca Polytechnic temporarily closed an entire campus.
- Ontario colleges receive 80% of all foreign enrolment allocations, making them the most affected institutions and in the province with the most post-secondary students.
Why it matters: Ontario colleges could also serve as a potential bellwether for Canada’s post-secondary system as the cap gets 10% stricter next year. Which is to say, expect more spending cuts across the country.—QH