After the provincial government releases its budget, we will prepare the 2026-27 university budget. Following Board of Regents’ approval, it will be shared with the university community.   

The university budget will then be used to build shadow budgets for each unit as an example of how the 2026-27 budget would have been implemented under the activity based/responsibility centered management model. We anticipate that these shadow budgets will be available in summer 2026.  

The shadow budget process is a learning opportunity for the entire community. There will be consultation, conversation, refinements, training, education sessions throughout this process. 

We have consulted with colleagues at other universities using this model to learn from their experiences and those learnings have been considered in developing Memorial's own ABB/RCM model. 

It's important to note that budget models reflect the distinctiveness of the institutions they serve. No two university budget models are identical in design and implementation as no two universities are the same. Design, implementation and related challenges will look different at every institution. 

Developing and implementing a new budget model means navigating change during already challenging times at Memorial but the status quo could not continue and this model will serve us well if we work together to support its implementation. 

However, budget model is simply a tool to support decision-making. It did not create our financial situation, and on its own, it cannot resolve it. Nor will it make decisions for us but it will inform decision making by making our spending less opaque.    

It is a more transparent way to understand our financial position and undertake budget planning. It is ultimately up to us to ensure effective decision-making and accountability. 

While deans will have greater day‑to‑day budget responsibility, institutional priorities remain set centrally through the Board, Senate, and senior leadership. Deans are expected to align their plans with those priorities and are accountable through integrated planning, budget review, and ongoing oversight processes. In short, flexibility increases at the faculty level, but accountability for pan‑institutional goals remains collective and clear. 

This is part of the discussion that we must have over the next few months.

The training of staff and appropriate staffing is a critical part of using technology and this will be considered.

The portfolio allocations are not anticipated to change. We are working towards reductions based on the allocations outlined in the budget workbook.

The administrative side of the university is an important component of ensuring a fully functioning university. We need some technological investments to ensure we offer those services as efficiently and effectively as possible.

Revenue generating is an important part of budgeting, and we welcome all ideas around that.  

Fundraising is an important revenue generator. We have recently invested in fundraising as we gear up for campaigns, and we look forward to continuing to increase our fundraising revenue for the benefit of our students and faculty.

This has not been considered. There are many ways for individuals to donate to the university, using vehicles such as life insurance, and people are encouraged to contact the Office of Development and Alumni Engagement to learn more.

Accountability and transparency are very important and we will continue to work towards that. We need to ensure that public funds are used in an accountable manner. 

Memorial solidified its approach and commitment to flexible work, including remote work, in its Flexible Work Arrangements policy. Remote work opportunities are available for staff based upon unit operational requirements. In determining whether remote work is feasible within a unit, a number of factors are considered including a balance of promoting a vibrant campus community.

It is included in the provost portfolio. This enhancement will be considered for the 2026-27 budget workbook. 

Portfolio leaders are discussing their allocations and the impact of reductions. Part of the discussion and process is to ensure we consider all of our collective agreements and ensure we are operating within them.

Financial exigency is a formally declared state of severe financial distress that threatens the institution’s ability to sustain its core operations.  Memorial is taking steps now to ensure the continued financial sustainability of the institution. 

For many years, the government gave Memorial University a special grant called the tuition offset grant. This money helped keep tuition fees frozen since the early 2000s.

In 2021-22, the government announced that this annual grant, which totaled $68.4 million, would be reduced over five years ($13.68 million each year). The idea was that as the government reduced its funding, the university would make up the difference by generating more undergraduate tuition revenue from increased tuition fees, using a new tuition framework.

Now, in 2025-26—year four of this five-year plan—the university is still facing a funding shortfall. Additional undergraduate tuition revenue generated annually from the increased tuition rates, including the 4% annual inflationary factor, has not kept pace with the reduction in the tuition offset grant.

The government paused the reduction of the $13.68 million this year enabling the university to strategically invest, reduce costs and focus on recruitment, retention and the student experience.

For the past number of years, there have been a series of actions taken to reduce costs. This includes reducing some senior positions and restructuring within some portfolios to make them more efficient. 

Next steps are for each portfolio to receive its budget allocation. They will then meet with the leaders in their units to determine actions that need to be taken to address the budget deficit. This will include conversations about the programs that we offer and the viability of some positions.    

Research at Memorial is often funded by external sources, including federal funding agencies, provincial and federal government, business and non-profit organizations.   

In the provincial government’s 2025 budget, the Operating Fund includes a $4.75 million Research Support Fund (RSF) program federal grant, which is an increase of $59,165 over 2024-25.   

In addition, the Federal Research Support Fund is budgeted at $4.75 million, a modest increase from 2024–25, helping offset indirect costs associated with research activities. 

We will be investing in continuity of program offerings, as well as student recruitment, retention and engagement to ensure our students continue to thrive.  

Any budget action taken will be analyzed for impacts on university operations, as well as the effect on the student experience and academic quality. 

Focused discussions are occurring around the future direction of Memorial University, its strategic priorities and structural changes. That will include a conversation about the programs that we offer and the sustainability of some positions.  

Strategic action is required to envision Memorial as a university that thrives in a world that is undergoing significant economic, political and societal changes. This will involve budget reductions and investments to ensure the academic mission of the institution is maintained and supported as efficiently as possible.    

Yes, but we are also proud that Memorial remains the most affordable university in Atlantic Canada, and offers outstanding programs and experiences. And we are proud of our outstanding employees who are very dedicated to and feel passionate about Memorial.

There will need to be cuts but we will also need to do things differently. How we are structured, how we offer services and the processes that we use. All of these things need to be considered as we work together to ensure we move forward in a way that continues to deliver quality education and support to our diverse student community. 

For the past number of years, there have been a series of actions taken in order to reduce costs. This includes reducing some senior positions and restructuring within some portfolios. A limited hiring program is in place and carryover use has been restricted.  

Focused effort to achieve our $20.8M expenditure reduction target for fiscal 2025-2026 has been a significant undertaking for the entire university. Preliminary results are positive and indicate costs are being curtailed. A few highlights of that significant work include: 

• Reductions occurred across all academic and administrative units in this targeted approach taken this year. 

• This preliminary assessment of achievement (while we await final March 31 financial close) indicates an approx. $14M reduction in base cost – or approx. 67% of the target reduction. 

• Some specific examples of these reductions include: Approx. $3.5M in the VPFA portfolio including the closure of 2 units and the restructuring of the Office of the Chief Risk Officer and approx. $10M across academic units and teaching campuses. This reduction includes position eliminations and other operating costs such as travel and hosting. 
  
  
• In addition, the executive restructuring that occurred in January (reducing the number of executive leaders from 7 to 3) as well as the decision to divest key assets both here and abroad that are not serving our core mission. These 2 sustainability initiatives will yield annualized base permanent operating cost savings of approx. $4M annually ($1M in executive restructuring and $3M in annual operating costs related to the divested properties). 

The OAG reports have provided a lot of recommendations for improvement. We are working on them and they will help to create a more efficient and lean institution. Some of the recommendations also require investment in things such as technology.  

The Board of Regents is ultimately in charge of Memorial’s budget and how it is allocated to units.  

Given the current financial constraints, it will require the entire university community to develop ideas for our future in a way that keeps Memorial sustainable. 

No. We are taking action now to create a more sustainable Memorial. Many universities across the country, and across the world, are having to reconsider the programs they offer, how they offer them, the administrative structure that supports the academic mission.

The investment of $70 million from the provincial government will have a significant impact at Memorial. 

In addition to those critical upgrades, the university has a program in place to monitor, audit, prioritize and complete infrastructure work, and we complete priority projects annually based on the available funding. More information was published in the Gazette in Februrary. 

The infrastructure challenges Memorial University is experiencing are not new, or unique to our university. We will continue to work towards addressing these challenges as resources permit.  

Our deferred maintenance program prioritizes projects with the greatest and most urgent need. We monitor, audit, prioritize and complete infrastructure work, and we complete priority projects annually based on the available funding, which is typically in the millions. 

At the March meeting of the Board of Regents, the newly created Campus Renewal Fee committee received approval to proceed with the recommended 2025-26 Physical and Digital Infrastructure project allocation totalling $7.7 million. The approval was conditional upon receipt of the funding.  The provincial government grant included $7.8 million for the 2025-26 fiscal year. Based on this, the Campus Renewal Fee committee will commence work on the approved projects, which are listed on our website. 

There is no early retirement program in place at this time, and any new initiative would require support from the Board of Regents before it could be implemented. 

We are exploring a number of options but the key to departure incentives is ensuring that the people who leave aren't vacating positions that are essential. We know this has been a real challenge at other universities, who have incentivized departures, only to spend additional resources on recruiting new/less experienced talent. That said, all things are on the table. 

The pension plan is a separately trusteed plan and is administered separately from the university's operating budget. The budget update has no bearing on the pension plan or its funding. The pension plan is covered by the Memorial University Pensions Act. 

No.

We meet regularly with government to discuss a number of topics and support for Memorial is something we are always advocating for. Changing federal restrictions for international student visas, a reduction in Memorial’s tuition offset grant and increasing inflationary costs have created this situation that requires decisive action to protect Memorial’s academic mission.   

There is no intention to close entire academic units; we remain committed to being comprehensive, and research-intensive. The work ahead, led by Provost Lokash, will involve a critical review of program mix and sustainability to identify potential synergies between existing units and consider opportunities to better align resources needs.  

While the goal is to protect academic quality and minimize disruption, the scope of this work means that some structural changes may be considered — including the merging or clustering of units where that would strengthen programs and support long‑term sustainability. We are committed to reducing the cost of administration such that we can mitigate (not avoid) cuts to front line academic programming.   

Any decisions made will be guided by our core commitments: protecting academic excellence, supporting students, fostering research intensity and ensuring long‑term financial sustainability.  

We have fewer students, our expenses continue to far exceed or revenue, and delivering on our obligation to Newfoundland and Labrador must be responsive to current circumstances and the foreseeable future.   

 An update will be provided to the university community once our 2026-27 budget has been approved by the Board of Regents. 

These changes will not address the budget shortfall for this year. They are an operationally manageable approach to begin the change process at Memorial. 

The factors to be considered (rationale for hiring) for administrative roles, as well as the hiring process, are outlined on the updated Justification for Hire Form-Revised Process which is available on the my.mun.ca forms portal under the recruitment tab. This process is as similar to the original process as possible; however, an extra step has been added with the requirement of receiving President’s Executive Council approval. 

Please note, the original Justification for Hire form is also available in the portal, this version of the form should be used for contract extensions only. 

We will be working hard to envision a new Memorial. Currently, there are measures in place to ensure due diligence and awareness of budgetary issues. 

Yes, regular work continues.  

There are currently a number of searches and recruitment activities ongoing; those that have already been advertised will continue through the hiring process.    

Vacant permanent positions will need to go through the exemption process in order to be filled.  

Secondments are contracts that can be extended with due diligence. If a contract is to be converted into a new permanent position, it would need to go through the exemption process.  

Contract renewals are permittable. We are asking units to ensure that they review extensions with this budgetary constraint lens.  

Any positions externally (e.g. grant) funded are not subject to the limited hiring program and will continue to be filled as normal. 

Yes. Per course instructors (PCIs), teaching term appointments, and reappointments/extensions to existing regular term appointments are exempt from the hiring pause. 

Contract extensions are permitted but units should consider the need for the extension in light of budgetary constraints.  

Contract extensions should follow the usual process of review. We are asking units to ensure appropriate diligence is given when looking at renewal, given our current budgetary constraints.  

There is need for investment in order to help modernize administration. We will be gathering input from the university community on how we can work collaboratively to maintain a positive, innovative environment. There is an exemption process in place, in part, to avoid this scenario. We cannot continue to do the same with less.  

The motion from the board is to: “Institute a limited hiring program in new tenure track and new regular-term appointments and new/vacant administration permanent and contractual positions, to be evaluated April 30, 2004.” Recognizing that there will be critical positions that will need to be filled, a process is being  put into place to provide exemptions to this directive.  

A secondment is a contract which means it can be extended.   

New and vacant positions are paused. Exemptions to fill a new or vacant position will have a process to go through for approval.    

Extensions to contracts are not paused. As always, units are to review extensions carefully, considering things such as:  

1. The position either directly supports operational needs or deliverables which cannot be deferred.
2. The impacts of not extending the contract are significant and are deemed unacceptable 

We encourage all ideas to ensure Memorial continues as a viable and innovative institution.