St. Thomas University ran a deficit in the 2014-2015 fiscal year. The university had an operating deficit of $1,323,629 and an ancillary deficit of $562,500.
In an internal memo sent from STU Vice President of Finance and Administration Lily Fraser, to faculty and staff the university said the reason for the operating deficit was due to a drop in enrolment, but also said there was a positive spin.
“The decline in operating revenues is in large part due a decline in investment income and student enrolment in 2014-15. The latter factor mirrors the decline in enrolment in the liberal arts experienced throughout the Maritimes and Canada,” wrote Fraser. “On a more positive note, St. Thomas University has been successful in retaining its share of liberal arts students when compared to other Maritime universities”
The memo from Fraser also mentioned the reasons for the ancillary deficit.
“There is a deficit of $562,500 due to a decline in revenues as a result of reduced occupancy in residence and higher than expected expenditures,” wrote Frasier.
At the moment there is one wing in each residence that has been closed due to a reduction in students living in residence. In the financial year ending April 2014 the university made $3,146,129 in residence fees, compared to $2,830,616 in the financial year ending April 2015.
President of St. Thomas’ Student Union Megan Thomson said that part of the problem may have been STU expanding residences too quickly.
“At the time, to my understanding, STU had something like 2,700 students and at that time it looked like that trend was going to continue,” said Thomson. “Now enrolment is down everywhere.”
Thomson did note that while enrolment is down, it’s actually higher than the university predicted it would be.
Tuition was raised this year as part of a five year plan that the university signed with the previous Alward government. That plan is still in place and tuition is scheduled to go up again next year. Thomson isn’t worried that this deficit will cause tuition to go up any more than it was planned to.
“I am not worried about the administration going off of the five year plan, but I will say that if they do, the students union will have a lot to say about it,” said Thomson.
Some good news for the student union did come out of this. The student union will now have representation on the president’s budget advisory committee.
“After conversations with the administration we’ve decided that this year will be the first year that myself and Ben Graham [STUSU VP Administration] will be sitting on that committee,” said Thomson.
The president’s budget committee is scheduled to meet sometime in November.
