University of Calgary faces $34.7 million shortfall amid more international student cuts

Immigration was on the chopping block in Tuesday’s federal budget, leaving post-secondary institutions, settlement organizations and lawyers in Calgary worried about what the future holds.

The federal government is proposing to drastically reduce the number of temporary residents it allows into Canada over the next several years — including international students. Finance Minister François-Philippe Champagne said the goal is to bring immigration to “more sustainable levels.”

The budget outlines Ottawa's intentions to slash the number of international student study permits to 155,000 in 2026 — down from the previous target of 305,900. The target falls further in 2027 and 2028, to 150,000 permits in each year.

While it may be too early to know exactly what the direct impact would be on Calgary’s post-secondary institutions, the University of Calgary said the new measures could mean a further drop in foreign student enrolment.

In a statement to CBC News, the university said it's already losing an estimated $34.7 million this year due to the decline in international student enrolment. That follows last year’s revenue hit of $15.3 million.

“We welcome the announcement that graduate students are not included in the government’s reduction, which will lessen the overall impact,” said a spokesperson from the University of Calgary.

Naomie Bakana, president of the University of Calgary Students’ Union, said the city could be losing out on global talent. She also worries about the message this sends not only to prospective international students, but also the ones who are already here.

“The cap makes it seem like we’re not necessarily welcoming them into this space,” said Bakana.

Mount Royal University, which has a significantly smaller foreign student population, said there are no plans to suspend programs or reduce staff as a result of the latest changes.

The Southern Alberta Institute of Technology said recent policy changes have led to a decline in international student enrolment, but this fall it welcomed 573 new foreign students — more in line with pre-pandemic levels.

A non-profit organization that offers immigration settlement services and language training for newcomers in Calgary is also worried about what the federal budget means for its future.

Coming out of a meeting focused on its strategy moving forward, the CEO of the Centre for Newcomers said there are many indicators that the organization’s funding will be cut.

Nketti Johnston-Taylor hasn’t heard anything official, but more than half of the organization’s funding comes from the federal government and the budget lacks clarity on settlement funding, she said.

“We’re wondering how and to what extent that will actually affect our clients’ ability to rapidly integrate into the labour market so they can also contribute socially and economically,” Johnston-Taylor said.