Sault College’s plan for its $5M deficit unveiled

Roughly a month after announcing a $5.7 million deficit triggered by the federal government's new rules on international students, officials with Sault College say they believe they have a plan to balance the budget.

A photo of Sault College's exterior signage in June 2024. (File photo/Mike McDonald/CTV News Northern Ontario)

The deficit stems from a cut to the number of international students who will be attending Brampton’s TriOS College – a private partner college of Sault College. A portion of revenue from tuition fees paid at TriOS College paid for much of Sault College’s operations, however in January the federal government announced a two-year cap on the number of international students allowed to study in Canada and stopped issuing post-graduate work permits to students at all private partner colleges.

• READ: Northern Ont. colleges react to new international student cap

In addition to the federal changes, the provincial government’s post-secondary tuition fee freeze has been extended for another three years along with a continuing freeze on grant funding for students and with rising costs this is also affecting the bottom line for all colleges.

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The Plan

The college is receiving about $2.5 million in grant funding from the provincial government but job cuts and course suspension will have to be used to cover the remaining estimated $3+ million deficit.

“Grant funding to students has been frozen, tuition has been frozen. Our international partnership is being dismantled,” said Sault College president David Orazietti.

“So, you know, we're we are we are doing everything we can to ensure our fiscal sustainability.”

David-Orazietti is the president of Sault College and a former MPP for Sault Ste. Marie. (File photo/LinkedIn)

The college is receiving some relief in the amount of approximately $2.5 million from the Ontario government’s Postsecondary Education Sustainability Fund – $1.3 billion in funding that was announced by Jill Dunlop, the Minister of Colleges and Universities, in June.

School officials said while this is not permanent base funding, the one-time funding that is expected to be provided over the next three years will help the college address its deficit.

The school has also implemented a number of cost-saving measures including an overall hiring freeze, a base salary freeze for some positions and a review of their program offerings.

To that end, the college is suspending 14 programs over the next two years – including robotics and construction project management. (A complete list of affected programs can be found at the end of this article.)

• Want more local news? Check out the Sault Ste. Marie page

No full-time Sault College faculty or staff members will lose their jobs due to the changes in course offerings, according to a news release from the school.

Orazietti said full-time faculty in suspended programs will be moved into other program areas but about 35 part-time non-unionized staff will likely be losing their jobs as their contract will not be removed.

“When these programs are suspended, full-time faculty will move into other program areas,” he said.

“They will be teaching ... They will have full-time work in another program area.”

College officials told CTV News that they are working with 21 students who had signed up for suspended programs next semester to help them find new courses to attend.

“All students currently enrolled in these programs will be able to continue. They will be able to complete their courses and receive their credential in this program area,” said Orazietti.

“No currently enrolled students in the program that are active will be affected.”

Orazietti added when it comes to future course suspensions or other cost-cutting efforts, the college will reassess at a later date based on enrollment numbers but for the time being, these will be the impacts for fall 2024 and fall 2025.

The Sault College board of governors decided on these courses of action to address the school’s deficit in a closed session on Thursday evening with students and staff informed of the board’s decisions on Friday morning.

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The college’s deficit is affecting plans to build a new 200-bed student residence and an artificial turf field.

Orazietti said the residence is still a high-priority project for the school as they need more housing capacity.

As for the new field – that is on hold for now, school officials said. However, Orazietti said the expansion of the school's men’s football team will move forward as planned in 2025 – using another local field.

The college said the school will be facing financial challenges for the foreseeable future given the impact of regulatory changes and policies on its business model.