Universities across the country are facing the challenges of constrained budgets, lower enrolment and increasing costs. 

Memorial University is no exception. 

Memorial is bound by legislation to maintain a balanced budget and does not budget for a deficit.  

As stewards of public funds, when faced with budget shortfalls, the university very closely examines all services, programs and positions to ensure Memorial is meeting the needs of students and responding to its special obligation to Newfoundland and Labrador.  

At Memorial, enrolment declined by 5.4 per cent in fall 2024 compared with the previous year. The financial impact of this decrease is projected to be over $9.5 million. 

Short- and long-term changes are necessary to ensure Memorial is able to meet the needs of students, and the people of Newfoundland and Labrador, in a financially sustainable manner now and into the future.   

Therefore, at its Dec. 5 meeting, the Board of Regents approved initiatives aimed at addressing the projected funding shortfall. They are as follows:  

Limited hiring program 

Instead of automatically filling new or vacant positions, effective Dec. 5, 2024, Memorial is introducing a limited hiring program that restricts hiring new/vacant administrative permanent and contractual positions, tenured, tenure-track and new regular-term appointments on all campuses as well as to Marine Institute instructors and research scientists.  

Staff positions such as instructional assistants, lab demonstrators, and lab assistants and Marine Institute research and technical personnel will be exempt from the limited hiring program. This exemption will be limited to contractual hires to address immediate needs versus permanent hiring. 

Any positions externally (e.g. grant) funded will not be subject to the limited hiring program and would continue to be filled as normal.

A process will be put in place to evaluate new position requests (both contractual and permanent) that are deemed necessary to support teaching and learning and operational needs.  

Extension of current non-academic contracts may continue with appropriate diligence.  

There are currently a number of searches and recruitment activities ongoing; those that have been advertised will continue through the hiring process.   

The limited hiring program will be reviewed on April 30, 2025, at which point it will be evaluated. 

Restrictions on carry over funds

Memorial’s budget policy allows units to carry over surpluses or deficits from the previous year.

Units typically use surpluses to save for one-time expenditures. Generally, units can save up to 10 per cent of their current-year base budget allocation.  

In the past, any carry over above 10 per cent reverts to the portfolio in which the unit resides and is used to support the operating budget. 

Effective Dec. 5, 2024, units will be restricted from using carry over. A process will be established to ensure that exceptions for institutional priorities (such as ongoing capital projects) can occur.  This initiative will be reviewed on April 30, 2025.

Further development of new budget model 

For the past 20 years, Memorial has used an incremental budget model whereby each year’s budget is built on the previous year’s budget.

Using historical spending patterns to guide future budgets makes responding to changing goals or current needs difficult.  

Memorial’s new budget model will include an analysis of expenses and budget allocations and will be made based on the institution’s goals, priorities and current needs, rather than on historical spending patterns. 

Over a year ago, work began to develop a new budget model that includes an element for tuition attribution. This means that a portion of tuition revenue generated from new enrolments and registrations in academic units will be allocated directly to those academic units. 

Changes in budgeting will start to be implemented for the 2025-26 fiscal year. 

Future planning 

These changes will not address the entire budget shortfall. They are an operationally manageable approach to begin the change process at Memorial. 

The current environment — changing federal restrictions for international student visas, reduction in Memorial’s tuition offset grant, increasing inflationary costs — has created a situation that requires decisive action to protect Memorial’s academic mission.  

We understand that the short-term measures introduced today, as well as the longer-term changes on the horizon, can be a source of stress and anxiety for our students and employees.  

We are committed to transparency and collaboration throughout the process and we will be looking for your ideas and input. 

Memorial’s commitment to education, research and public engagement remains steadfast.

The Board of Regents is committed to the academic mission of the institution. Our goal throughout this process is to evolve Memorial into an institution that is responsive, resilient and resourceful.  

We are planning for the future to ensure the university continues to focus on its core mission. To do this, we must work collaboratively to maintain a positive, innovative environment and create a forward-looking university that is responsive to student needs, fiscal realities, enrolment changes and the needs of the province.

The end result will be a more focused, likely somewhat smaller, well-funded, culturally rich institution.   

Please visit www.mun.ca/budget for more detailed information. The website will be updated as new information becomes available.