Officials at Loyalist College say plans are taking shape that will see the college return to a balanced budget position in the very near future.
A new Sustainability and Recovery Plan was presented on Wednesday to Loyalist Staff after it was approved by the Board of Governors.
Going over the details in an interview Thursday morning at Loyalist with our News Director Paul Martin, President Mark Kirkpatrick revealed that operations would continue at campuses in Belleville, Port Hope, Bancroft and Tyendinaga, with some consolidation of locations within the Belleville and Port Hope communities.
The college has been facing enormous financial pressure since the Federal Government made changes to International Student numbers, but Kirkpatrick says they are taking steps to erase the operating deficit over the next two years.
Loyalist is currently projecting a deficit for the current fiscal (including the school year already underway) of $14 million, with another $10 million deficit expected next year before the college returns to a cash-positive position in 2027-2028.
Loyalist entered into a loan agreement with the Ministry of Colleges and Universities on November 24th to provide the cash needed to act as a bridge while other changes are made. It is for a maximum of $25 million (total) but will only be used as needed (and so could be for much less).
Kirkpatrick says this has been an “extremely difficult” time for everyone involved, but “we have always worked from the idea that we will be here, we are not re-trenching, we are moving forward, and we are not going anywhere.”
Earlier this year, Loyalist College announced a wide-ranging plan to reduce expenses and deal with the current fiscal shortfall that saw the suspension of 24 programs and a planned reduction of 20% of staff. No layoffs beyond those initial levels are happening this calendar year.
Loyalist is currently undergoing a voluntary exit and retirement program, with submissions open until December 15th. Once that is complete, a full analysis will be done with the possibility of more changes being announced early in the new year.
Kirpatrick ended his interview with InQuinte.ca on a more positive note by highlighting the success they have had in attracting more domestic students, with numbers in the current year in Belleville and Port Hope (combined) at just under 2,300 (higher than initial projections). That number is expected to increase to between 2,300 and 2,500 over the next two years.
