At a special meeting held on May 20, 2026, the Board of Regents approved Memorial University’s operating budget for 2026-27. This budget reflects the university’s core operating activities and does not include the Faculty of Medicine. The Faculty of Medicine operating budget has also been approved at $98 million.  

The 2026-27 operating budget is balanced with operational revenue totaling $432 million. The recent provincial operating grant to Memorial provided important stability and will enable Memorial to advance necessary change in a measured way. The university’s budget also reflects cost reductions to address ongoing and forecasted financial pressures. 

“In developing this budget, the priority was to support core academic delivery while making deliberate, evidence-informed decisions about the investment of our resources,” said President Janet Morrison. “That means improving how we operate and focusing on long-term sustainability. We are strengthening Memorial so we can continue to serve students and the province now and into the future.” 

Why change is necessary 

As discussed at town halls and Senate, Memorial is operating in a fundamentally changed environment characterized by a sustained decline in university-aged learners in Newfoundland and Labrador, increased competition for Canadian students, changes to federal immigration policy, a constrained public funding landscape and rising fixed costs. 

These pressures are structural and will not resolve without deliberate action, which includes strategic investments combined with cost reduction measures.  

“Memorial is navigating these significant pressures with recognized and enduring strengths, including expertise in oceans, climate, sustainability and public policy. Our university cultivates the critical thinking skills that society needs at this moment of profound disruption,” noted Dr. Morrison.  

“There is opportunity in the alignment of our resources and structures with Memorial’s strengths and legacy of impact. The challenge is to do that in a financially constrained environment, where difficult choices are required to ensure our university remains vibrant and viable.”  

Strategic investments

This budget includes investment to strengthen academic quality, enhance the student experience and steward Memorial’s long-term financial sustainability, including:  

• Targeted support to strengthen the first-year experience and improve student retention.   

• Enhanced recruitment efforts to attract more Newfoundland and Labrador high school graduates and expand enrolment from select Canadian and international markets.  

• Support for program continuity through targeted investment in contract teaching.  

• Actions in response to the findings of the Employee Engagement Survey because a sustainable university depends on a supported and engaged workforce. 

• Continued work to streamline processes and improve how the university operates.  

In addition, the operating budget includes an increase in the allocation of base funding to the School of Music, increased support to varsity athletics for travel expenses and investments in information technology. 

Voluntary Retirement Program

To reduce costs and offer long-service employees additional financial support as they consider retirement, the university will offer a one-time Voluntary Retirement Program (VPR) for faculty and staff who meet specific pension criteria.  

The program will be available to employees in permanent, operationally funded positions who meet age or service criteria (age 60 and older with at least 30 years of service or age 71 or older regardless of years of service). Applications will be accepted from June 1 to July 10. More information is available online and additional information will be provided prior to the start of the program.  

Further cost reduction measures 

The budget planning process required leaders to model budget reductions of 5–10 per cent. With continued support from the provincial operating grant, current reductions are 6 per cent for administrative units and 4 per cent for faculties and schools.  

Following the conclusion of the voluntary retirement program, the cost reduction target will be recalibrated based on savings achieved. It is not expected that the VRP will enable all cost reductions to align Memorial’s cost structure with enrolment and revenue realities.  

The scope and timing of additional measures, including any changes to staffing levels, will be determined and communicated in August 2026 after the outcomes of the Voluntary Retirement Program are known.  

Savings will be used to establish a contingency fund (sustainability reserve), designed to provide stability and flexibility to support long-term planning against future uncertainty.  

Next steps

The detailed University 2026-27 Budget presented to the Board of Regents is available online for the university community. 

Units will receive their budget allocation on June 5.  

To review the operating budget in more detail and answer questions from the community, a university-wide town hall will be hosted by the vice-president (finance & administration) and chief financial officer on Wednesday, June 3, at 11 a.m. Further details on registration will be shared with the university community shortly. 

With regards to the $20.85 million permanent cost savings required in the 2025-26 budget, we’re pleased to share that early indications point to meaningful progress made possible by collective effort. The university will report more on this following auditor validation of the 2025-26 financial statements and approval by the Board of Regents, which is expected later this summer.  

Resources to support employees, including workshops on coping with change and building resilience, are available through People and Culture. The next available session on taking control of change and uncertainty is available online on June 12. 

Memorial is evolving through clear, deliberate action to sharpen its teaching and research mission, put students first and secure its future as Newfoundland and Labrador’s university. You can stay informed about Memorial’s evolution as this work continues and share your questions, perspectives and ideas online.