For years, stories have emerged about the sacrifices made by overseas families to fuel Ontario's international student boom. Families in poor countries sold their few possessions, sometimes even their farms, to pay steep tuition costs for foreign students in Canada, only to find that the education and opportunities fell short of expectations.
Now, the other side of that story has come to light. The Doug Ford government has placed Conestoga College in southwestern Ontario under administration after an audit uncovered what it called 'numerous egregious financial decisions.'
Comically Ridiculous Misspending
The audit revealed a 55% salary increase for former president John Tibbits, along with a severance package totaling 83 times his monthly salary. The Waterloo campus is now named after Tibbits. Additionally, the government pointed to a $23,000 trip to Italy for three senior staff members and a $1,300 staff meal where over half was spent on alcohol.
While many Ontario colleges gorged on the high tuition from international students, Conestoga was the biggest beneficiary. It increased foreign enrollment by nearly 150% from 2021 to 2023, tripling its total revenue over three years. Such growth explains the loose purse strings.
A Widespread Issue
Conestoga was not alone. Dozens of Ontario colleges saw huge jumps in international students, yet almost none built housing for the new arrivals. As community colleges, they traditionally served local students who lived at home.
The boom has since collapsed. The federal Liberals capped international student visas two years ago, recognizing that the growth during COVID-era labor shortages worsened the housing crisis, increased rents, and tightened the post-pandemic labor market, especially for young people. Foreign students often became victims themselves, discovering upon arrival that housing was scarce and costs high.
Incoming foreign enrollment has plummeted, especially after Ottawa made it harder to obtain post-degree work permits. Colleges like Conestoga have had to cut courses and staff as revenues dropped.
The situation at Conestoga, from financial excess to being placed under administration, underscores the absurdity of allowing this situation to persist for so long.
