Facing a wave of staff layoffs and program cancellations at universities and colleges across British Columbia, the provincial government has announced a comprehensive review of the post-secondary education sector's long-term sustainability. The province is pointing directly to federal caps on international students as the primary cause of the financial instability.
Federal Caps Trigger Financial Strain
The crisis stems from significant policy changes at the federal level. In January 2024, the Canadian government imposed a two-year cap on international students, leading to a 35 per cent reduction in undergraduate study permits nationwide in its first year. The financial pressure intensified in this year's federal budget, which slashed the number of permits by an additional 65 per cent.
This dramatic drop in international student enrolment has created a substantial revenue shortfall for institutions that have come to rely on the higher tuition fees these students pay. The financial strain has forced several prominent schools to make difficult decisions.
Institutions Forced to Make Cuts
Major British Columbia post-secondary institutions are already feeling the impact. Simon Fraser University, Vancouver Island University, and Camosun College have all been compelled to eliminate academic positions and suspend various programs due to the severe decline in revenue.
For years, experts and student advocates have warned that the province's funding model for higher education was unsustainable. They have consistently argued that inadequate government funding is the root cause of the financial challenges facing universities and colleges.
Government Response and Review Details
B.C. Post-Secondary Education Minister Jessie Sunner has a different perspective. When questioned about whether insufficient provincial funding contributes to the problem, she pointed to other factors. "Institutions are facing serious financial challenges, including as a result of the federal government’s cuts to international student study permits," Sunner stated.
She further cited global economic challenges, declining domestic enrolment, and ongoing recovery from the pandemic as compounding issues that have increased revenue losses.
To address the crisis, the government has appointed Don Avison, chairperson of the board of directors for Emily Carr University and a former deputy minister of education, to lead the review. His mandate will focus on three key areas:
- Streamlining university governance structures
- Finding ways to deliver programs effectively within existing budgets
- Addressing immediate and long-term financial challenges
A final report from this review is due by March 15, 2026. This timeline means any recommendations are unlikely to be incorporated into the next spring budget, leaving institutions to manage the current financial pressures for the foreseeable future.
Minister Sunner acknowledged that a previous review of the post-secondary funding model was conducted in 2022, but no final report was ever released publicly. She defended the new review, stating, "That review that was previously done was looking at one part of the entire sector. So this is a very different review where we need to look at the entire sector holistically." She emphasized that the economic circumstances, particularly the international student visa cuts, have created new pressures that did not exist during the earlier assessment.
