Budget Update Recap

Budget Update Recap

Dear colleagues,

Thank you to everyone who joined me and members of the UBC Okanagan leadership team for our recent Budget Update. It was a welcome opportunity to share our financial outlook, discuss emerging enrolment trends and outline our planning priorities for the year ahead. I was joined by Associate Vice‑President, Finance and Operations, Rob Einarson and Provost and Vice-President Academic pro tem, Marie Tarrant.

Over the past several years, our campus has navigated sustained financial pressure, from rising operating costs to global policy shifts affecting international students, alongside challenges seen across the wider post-secondary sector. Thanks to proactive planning and the implementation of multi-year mitigation strategies, UBC Okanagan is on its way to stabilizing its financial position.

We are projecting a balanced operating budget for the upcoming fiscal year. After several years of cuts, administrative budgets will remain flat, while faculties continue advancing multi-year plans that align resources with enrolment patterns and the evolving needs of our academic programs.

While enrolment has seen some volatility in recent cycles, early indicators point to cautious optimism. Domestic undergraduate applications have increased significantly and international applications are also showing strong growth.

The key now is to support progression from applications to confirmed enrolments, and ultimately, to ensure we deliver the supportive and enriching student experience that defines our campus. The increased applicant pool positions us well, providing us with greater capacity to plan strategically.

Looking ahead, we will continue to work across the institution to:

• Strengthen student recruitment, retention and overall success
• Expand experiential learning, co‑op and work‑integrated education opportunities
• Deliver academic programs that align with community needs and economic priorities
• Plan responsibly for future facilities and infrastructure investments including for our research

We also shared a number of recent innovations in program design and renewal, driven by the strong partnerships we continue to build with community and industry.

Although challenges remain, there are clear signs that our campus may be turning a corner. Through continued collaboration, thoughtful planning and an unwavering commitment to our students and community, UBC Okanagan is charting a path toward long‑term resilience and sustainable growth.

Thank you for your continued commitment to our university and for contributing so meaningfully to the strong future we are advancing together.

Sincerely,
Lesley Cormack

Key Themes and Takeaways from the Budget Update Q&A:

During the Budget Update, faculty and staff asked a wide range of thoughtful questions. While we were unable to address every question live, below is an overview of the eight main themes raised and the key takeaways shared by leadership.

New Academic Structure

• The intention of the new academic structure project is not a budget‑cutting exercise, nor is it intended to close programs. The focus is on designing a faculty structure that is fit for purpose, and which can enable the academic priorities developed last year. To learn more, please find the information on the website.

Enrolment Strategy

• Applications are up across all faculties, though growth rates vary by program.
• International student composition has shifted due to geopolitical factors; recruitment is now distributed across more regions including South Asia, Africa, and Latin America.

International Student Recruitment

• UBC Okanagan has approximately 100 third party international recruiters in place. These recruiters work on a commission-based recruitment model, where recruiters are only compensated when a student successfully enrolls at UBC Okanagan and completes their first year. This model gives recruiters a financial incentive to prioritize student success and retention.

Student Experience

• International students now receive an annual UBC Okanagan Global Elevation Award in the amount of $8,000 to improve affordability and support retention.
• As students transition to the downtown campus, planning is underway to maintain strong community spaces, services and activities.
• Experiential learning remains a budgeted priority, with continued expansion of co-op and applied learning opportunities.

Research Growth

• Growth in research activity is encouraging, and work is ongoing to align operational and administrative capacity with increased demands.

Financial Sustainability & Cost Pressures

• New costs – including cybersecurity and technology upgrades – are now part of the university’s core operations and are being incorporated into financial planning.
• UBCO will be entering a long-term lease agreement with Properties Trust for the Academic Space on Floors 1-8 of the UBCO Downtown upon its completion. UBCO has already invested $27m up front as partial payment for the tenant improvements and fit out of the 118,000 ft2 of academic space, and will pay an annual lease payment of $4.0m per year for 25 years representing the balance of the cost for tenant improvements and lease on the UBCO space itself. Operating costs such as utilities will be UBCO’s responsibility beyond the cost of the lease and will be expensed as incurred.

Capital Projects & Space Planning

• The downtown and XSS buildings will enable more strategic use of existing space, including backfill opportunities.
• Landmark will wind down over time; IA1 will remain in place until long-term allocations are finalized. No moves are being planned within the next year.
  Office modulars continue to serve as swing space for necessary renovations.
• Food services is shifting toward fewer, larger, more sustainable locations; enhancements to Sunshine and Tim Hortons are underway.