Dear MSVU faculty, staff and students,
At their May 8 meeting, the MSVU Board of Governors approved the university’s operating budget for the 2025/2026 fiscal year.
This year’s budget prioritizes modest investment in the student experience and growth initiatives against a challenging financial backdrop. Across the country, universities are facing decreased international student enrolments resulting from changes to Immigration, Refugees, and Citizenship Canada (IRCC) regulations, as well as additional financial pressures due to rising costs, declining investment income, worsening US exchange rates, and more.
CONTEXT
Federal regulations affecting international students
IRCC initially capped study permit availability and introduced the Provincial Attestation Letter (PAL) requirement for international student applicants in the winter of 2024. Since then, there have been additional policy changes that have further decreased international students’ interest in and applications to Canadian Universities.
(1) The PAL requirement now includes all international students, i.e. master’s and doctoral students. A specified percentage of MSVU’s total PAL allocation must be used for graduate students.
(2) Most diploma and certificate programs, including well-subscribed programs at MSVU, are no longer eligible for post-graduate work permits.
(3) International students already enrolled in a Canadian post-secondary institution must now apply for a new study permit to transfer to another university.
A notable decrease in international student enrolment is anticipated at MSVU this fall. An estimated decrease of 5.5% is reflected in our 2025/2026 operating budget.
New Bilateral Agreement
The Nova Scotia provincial government recently signed new two-year bilateral agreements with each university in the province.
MSVU’s new agreement includes a 2% increase to our operating grant each year for the next two years. However, there is a 5% holdback in year one and an 11% holdback in year two based on such factors as our implementation of our strategic alignment plan, health program utilization, academic program review, and housing availability and occupancy.
The new bilateral agreements stipulate that there will be no increase in tuition for Nova Scotia undergraduate students in 2025/2026 and 2026/2027. This is good news for students from an affordability perspective. At the same time, this cap will be challenging from a budget perspective. Graduate student and international student tuition is not capped in the bilateral agreement.
2025/2026 BUDGET DETAILS
A deficit of $1.59 million is projected this year.
The budget reflects minimal new financial commitments, but does include some modest investments in student supports, including a slight increase in our total amount of student financial aid. With a view to long-term sustainability, the budget supports small strategic investments aimed at future growth (e.g., enrolment growth) and increased efficiencies.
The budget plans for a 3% tuition increase for graduate students and a 3% increase in the international student differential. As outlined last year, there will be adjustments to the international student differential for third- and fourth-year students based on the delayed implementation of the provincial government’s previous requirement to increase international student tuition, thus harmonizing the international student tuition rate across all undergraduate students. The decision to increase tuition is never taken lightly and we have worked to keep increases as low as possible.
The budget includes a $15/course increase to the facilities renewal fee. These fees, which support campus infrastructure projects, are still below the provincial average.
MITIGATION
This year’s projected deficit will require that we draw on our reserves and will need to be carefully and strategically addressed with a view to sustainability. Our mitigation approach in the year ahead will include thoughtful expense management as a community and identifying sound opportunities for growth. The intent is to return to a balanced budget within four years, with progressively smaller annual deficits in the interim.
MSVU holds a unique place in the post-secondary landscape. We have a long history of fiscal prudence and remain strongly committed to the values that make us who we are and to supporting a sustainable future for the university.
As always, please be in touch if you have any questions.
Thanks,
Isabelle
Isabelle Nault
Vice-President, Administration
Mount Saint Vincent University