By Shaye-Love Salcedo
Toronto Metropolitan University (TMU) is preparing for a financially challenging 2025-26 academic year as the school grapples with government-imposed tuition freezes by the province, federal developments in international student enrolment caps and rising operational costs.
On Feb. 26, TMU officials presented the annual budget plan in a town hall meeting via Zoom, outlining financial hurdles and priorities for the upcoming year.
Provincial and federal policies impacting revenue
According to TMU President Mohamed Lachemi, the university’s overall financial outlook remains constrained due to provincial policies limiting tuition increases and capping domestic enrollment growth.
In January 2019, Ontario mandated a 10 per cent tuition reduction and has kept them frozen since, significantly reducing revenue from domestic students. Additionally, the federal government’s cap on international student visas introduced in January 2024 presents a new challenge as nearly half of TMU’s revenue is tied to tuition fees.
“This cut and freeze had a real impact on our operating revenue,” Lachemi said. “We continue to work with our federal universities and sector partners like the Council of Ontario Universities to connect with [the] government and illustrate the negative impact of these tuition policies on the fiscal health [of TMU].”
A $13 million shortfall and budget cuts
Vice-Provost of University Planning Kimberley McCausland outlined financial constraints for the 2025-26 budget and noted a projected $13 million deficit. While total revenues are expected to increase by 1.7 per cent, rising inflation and salary costs will lead to a required 2.5 per cent budget reduction across the university’s finances.
According to McCausland, the reductions will be implemented at a faculty and department level. “While it will not be easy, we are confident in our ability to work together,” McCausland said.
Despite these financial pressures, McCausland emphasized that student employment opportunities and financial aid programs will not be affected.
Strategic investments and campus development
TMU is set to move forward with some key projects amid budgetary restrictions, including the new TMU School of Medicine in Brampton, Ont. and the Student Wellbeing Centre at O’Keefe House on campus. These initiatives are being funded separately through donations and municipal contributions.
“The entire [medical school] building actually was donated by the City of Brampton,” Lachemi explained. “[They were] able to give us a donation of $20 million to start the renovation of the building.”
TMU is currently seeking additional funding from the federal and provincial governments to support ongoing and future capital projects. Lachemi expressed his hope for additional “funding for infrastructure” after the provincial election that occurred on Feb. 27.
Academic programs and institutional priorities
Provost and Vice-President Academic Roberta Iannacito-Provenzano confirmed that TMU is not planning to enforce any broad program cuts, despite financial challenges. Provenzano claimed that the university remains committed to aligning its academic offerings with its strategic vision and student needs.
“We are really prioritizing thoughtful academic planning, working closely with faculty, with our deans, our students and other stakeholders to really explore ways to sustain and evolve programs while maintaining a high-quality education,” she said.
When broader political debates about equity, diversity and inclusion (EDI) initiatives were addressed, the university also reaffirmed its commitment to the topic. “The response is always to link EDI to excellence because we are not just pushing for more diversity without paying attention to good quality,” Lachemi stated.
Looking ahead
TMU officials emphasized that they will continue advocating for increased government funding and exploring alternative revenue sources. This includes expanding micro-credential programs through the G. Raymond Chang School for Continuing Education.
Students, faculty and staff will have additional opportunities to voice concerns and provide input on budgetary decisions, with additional town hall meetings and consultations planned for March 17 and 18.
For more information or to provide feedback, TMU encourages community members to visit the university’s budget website or email budget@torontomu.ca.
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