‘It’s bad governance’: KPU board of governors approve 2026-27 budget with $31-million cuts

The Kwantlen Polytechnic University board of governors (BOG) approved the 2026-27 budget despite faculty opposition during a meeting on Jan. 28 at the Cloverdale campus.

The approved budget will cut $31 million from KPU’s spending, compared to the 2025-26 base budget.

KPU has been facing declining international student enrolment due to the federal government’s cap on international study permits. As a result, between fiscal year 2024 to fiscal year 2027, KPU will have endured an $88-million decline in international student revenues.

“The university must adjust to the evolving funding landscape — international student revenues have declined and are not expected to return to 2023-24 levels,” Associate Vice-President Finance Carole Laplante said.

In 2024, international students’ tuition and fees were $134 million — 46 per cent of KPU’s total revenue. In 2027, they will drop to just $46 million or 18 per cent of total revenue.

Laplante said estimated international student headcounts for 2027 have decreased by about 65 per cent from 2024 levels.

Domestic student tuition and fees are “flat” and will increase to $41 million in fiscal 2027, compared to $38 million collected in fiscal 2024.

“The budget we’re presenting today is built on a conservative, yet realistic, estimate of our revenues and expected expenditures,” Laplante said.

The largest cut is to salary spending, with an incoming $25-million drop compared to the 2025-26 budget. Salaries and benefits are approximately 70 per cent of KPU’s total expenditures.

The salary cuts include a $11-million decrease in faculty salaries, a $3.5-million cut to BC General Employees’ Union (BCGEU) salaries, a $5.5-million drop in admin salaries, a $98,000 decline in other salaries, and a $4.8-million decrease in net benefits.

“Presenting a deficit budget is not a viable option. To ensure long-term sustainability, the university must adjust to the evolving funding landscape” Laplante said.

The non-salary reduction target is $5 million — as compared to the 2024-25 actual budget. Non-salary spending is planned to decrease $8.6 million from the 2025-26 fiscal year to 2026-27.

Compared to 2024-25 spending, student awards funding will drop from over $7 million to just $4.7 million — a 34-per-cent decrease.

“I believe this budget is too early,” Faculty Board Member Lyndsay Passmore said. “Why are we doing this in January?”

KPU’s board of governors typically receives the budget in March. The University of British Columbia’s board of governors receives its annual budget report in March, too. Simon Fraser University’s budget is reviewed and approved between January and March.

“There are provincial budgets proposed for February … so we know at those times, sometimes that can mean substantive change that we may need to respond to,” Passmore said. “It could change priorities and it could change expenses.”

The B.C. government’s budget will be published on Feb. 17. The province also launched an independent review of funding sustainability for the public post-secondary system in November, in response to mounting financial pressures. The report and its recommendations will be delivered by March 15.

“I worry this is prioritizing operational efficiency over strategy. I think [we’re] reviewing this a little too early, because there are a lot of moving parts externally,” Passmore said. “I think it’s bad governance.”

Passmore attempted to move a motion to delay the budget review and vote to March, but no BOG member seconded her motion, so it failed.

“I do think it was a bit of a rush consultation period during a very busy time,” she said.

“We have engaged with students, faculty, staff, and external partners to ensure we’re clearly communicating the rationale for our budget decisions and investing in a sustainable future,” Vice-President Administration Peter Smailes said.

Smailes said he and Provost and Vice-President Academic Diane Purvey ran a listening tour across all campuses, except Civic Plaza, to present KPU’s financial plans. 

“One of the things we did to try to make sure that faculty would be available is we scheduled that as part of the faculty meetings,” Smailes said.

“I think it’s probably the most extensive consultation period we had, and we still have the listening to our site open and people are still bringing questions forward,” Purvey said.

Passmore said she attended the listening tour as part of the Melville School of Business and four people attended — two were faculty members.

“It’s not the faculty’s fault [because] it was only scheduled the week before, during busy teaching slots for the School of Business,” she said.

Passmore added the senate meeting where the budget was presented was on Nov. 24 — the busiest time for faculty with final exams.

Senate approved the budget at the meeting with 21 votes in favour and two opposed. Faculty senators Tara Lyons and Mike Larsen voted against the budget.

“Times of change require deep engagement with stakeholders,” Passmore said.

Only Passmore voted against approving the budget at the board meeting.

The next BOG meeting is scheduled for March 25 at 5:00 pm. For more information, visit www.kpu.ca/governors.