‘We are strong and resilient’: KPU board passes budget showing waning international revenue
The board of governors heard that a healthy surplus should be at least $5 million, but KPU’s was only $202,000 in 2026
The next KPU BOG meeting will take place on June 24 at 5:00 pm. (File photo)
Kwantlen Polytechnic University’s board of governors (BOG) passed its draft consolidated financial statements for the year ended March 31 during a meeting on May 27.
KPU’s annual surplus for 2026 was $202,000 — less than one per cent of actual revenue. In 2025, the surplus was $5.4 million.
“KPU’s total revenues were $16 million lower than fiscal 2025,” Interim Chief Financial Officer Carole Laplante said.
She said a surplus of two to four per cent should be the target. For KPU, this would be a surplus between $5 million to $10 million.
Last March, KPU laid off about 70 faculty members, plus another 45 staff in late August. The university’s most recent layoff notice went to 113 employees in March.
The international student cap, and subsequent decline in enrollment at revenue, has had the most significant impact on KPU’s budget, Vice-President Finance and Administration Peter Smailes said.
“In anticipation of these pressures, … we set reduction targets, limited increases, and only took essential needs. We also prioritized revenue diversification, student supports, recruitment and retention, cybersecurity, and climate action,” Smailes said.
International student revenue was nearly $59 million — $43 million less than last year and $18 million lower than what was planned in the fiscal 2026 budget. From fiscal 2024 to fiscal 2026, that’s a decline of $71 million.
An auditor general report released in March found that B.C. experienced a 66 per cent drop in international study permit approvals in 2024, despite only expecting an 18 per cent dip.
KPU’s domestic student revenue was $42 million — a $3 million increase from fiscal 2024. Laplante said this slight boost is due to tuition rate increases.
Laplante said the post-secondary education ministry approved KPU deferring about $83 million from surpluses from previous years, particularly fiscal 2024. A total of $19 million of those funds were recognized in 2025-26 for student awards, international partnerships, transitional staffing costs, and other areas.
Other revenue include $11 million in investment and $28 million in deferred contributions, such as funding from external parties and capital funding.
“These deferred contributions are recognized as revenue only as the related expenditures occur, meaning they don’t affect our bottom line,” Laplante said.
“However, they have significant impact on the university by enabling important projects, strengthening our reputation, and enhancing contributions to Canada’s post-secondary and research landscape.”
She said that employees’ salaries and benefits make up approximately 73 per cent of KPU’s costs, amounting to about $206 million for fiscal 2026 — almost $2 million less than fiscal 2025.
Student awards were “reduced to a more sustainable level,” Laplante said. They were allocated $5.3 million, which is $1.9 million lower than fiscal 2025’s spending.
“Fiscal 2025 student awards included additional and international awards funded through mid-year allocations and one-time-only budgets, as well as [a] nursing tuition grant.”
As part of KPU’s cost-reduction strategies, Laplante said the university is planning to temporarily close floors at the Civic campus.
President and Vice-Chancellor Pro Tem Diane Purvey said key areas when looking ahead to fiscal 2027 and beyond include maintaining a balanced budget, strategically directing resources toward high-impact areas, and prioritizing engagement with the KPU community to “ensure transparency and collaboration in budget decisions,” among other areas.
“We’re at a pivotal point in KPU’s history, and we are strong and resilient. We believe that these focus areas reflect our values and our vision for the future. They’re guiding us as we make difficult decisions and invest in what matters most,” Purvey said.
The BOG also approved its amendment to Policy and Procedure BP4 Campus and Capital Planning, effective Sept. 1.
The policy guides administration of university property, buildings, and structures. Because much has changed at university since the policy was last updated in 2013, it does not “accurately or comprehensively address campus planning and related capital planning at KPU,” the meeting’s agenda reads.
Clarifying responsibilities of key university departments as it relates to campus and capital planning, introducing new definitions, and highlighting ongoing commitments to Indigenous engagement and inclusivity are among the updates.
“[As] a policy-heavy organization, [let’s] ensure policies are constantly looked at to make sure everyone that’s relying on them can continue to rely on them,” board member Gabby Gill said.
Nominations opened for the chancellor position until July 17. KPU’s current chancellor, Kwuntiltunaat Kim Baird, will complete her term in October.
The next BOG meeting is scheduled for June 24 at 5:00 pm at the KPU Richmond campus. For more information, visit www.kpu.ca/governors.
