Algonquin College to close Perth campus in 2026, citing financial strain

The college expects a $32-million loss in revenue this year, and expect a deficit of $96 million by 2027, which they say forces the closure.

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Published Jan 10, 2025  •  Last updated 5 minutes ago  •  4 minute read

Students walk past an Algonquin College sign at the Woodroffe campus in this file photo. Photo by Errol McGihon

Algonquin College’s Perth campus will close in 2026 and programs and jobs are on the table as the college faces a $32-million loss in revenue this year.

The anticipated deficit will increase to $60 million for the 2025-26 school year, ballooning to $96 million the following year.

“Every area of the college is being reviewed and will be impacted,” said Algonquin president and CEO Claude Brulé in a memo to the college community released Thursday evening.

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Closing the Perth campus by the end of August 2026 is “an extremely difficult decision that is not taken lightly and is a direct result of the financial challenges we are facing.”

‘The most challenging times in the college’s history’

Brulé’s memo indicated further cuts to the college’s programming could be coming. A full review of the college’s programs, as well as administrative and support services, has been happening since the fall.

Brulé called it “the most challenging fiscal time in the college’s history.”

In an interview with Postmedia on Friday morning, Brulé said decisions have not been made and his recommendations will be before the board of governors on Feb. 24.

“If it’s in line with the recommendations that I put forward, then things will move along to the implementation plan,” he said.

After August 2026, programs held at the Perth campus will continue at the Ottawa campus. There are currently 137 students in programs on the Perth campus.

“That plan, as we now envision it, is to continue to teach those programs that are in Perth to remain in Perth and. Finish what they have started and then move. We are still in the phase of analysis,” said Brulé.

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It is too early to predict the extent of job cuts, he said.

Revenues received from the province and the tuition colleges get from students have been held back for years, he said.

“In the case of students, tuition was frozen and reduced by 10 per cent back in 2018, which means that students are paying 2015 prices for their tuition, and will continue to do so until 2027. That’s the latest announcement from the government,” said Brulé.

“In the meantime, though, all expenses that relate to the delivery of programming, inflation has increased by at least 25 per cent. So we’re looking at the revenue line,” he said.

“It is very difficult to make ends meet, and we have to look at how we do everything. We’re looking at our programs, we’re looking at our administrative functions and our support services.”

Algonquin’s announcement was not unexpected as a number of other Ontario colleges, including Seneca, Fanshawe, Mohawk and Fleming, have already announced cuts to programs and staff as they all grapple with the loss of revenue due to declining international student enrolment.

More announcements are expected in the coming weeks. The financial health of the province’s colleges has been on shaky ground as post-secondary institutions face a steep drop in revenue from international students, as well as a tuition squeeze.

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According to a blue ribbon panel report on financial sustainability for the province’s postsecondary sector released in November 2023, Ontario’s funding per college student was $6,891 in 2021-22, about 44 per cent of the figure for the rest of Canada.

Colleges and universities have come to rely more and more on international student tuition fees to the point where the revenue from this source is fundamental to the sector’s financial sustainability. “This increased reliance raises the postsecondary institutions’ risk exposure,” the report said.

In January 2024, the federal government announced was setting an intake cap on international student permit applications for two years. Provincial caps have been weighted by population, resulting in much more significant decreases in provinces where the growth has been least sustainable, including Ontario.

In August, the Ontario government announced it was suspending all new college international activities, pending a review of entrepreneurial activities.

The moratorium includes establishing branch campuses, curriculum licensing agreements or development arrangements, corporate training contracts or incorporating new subsidiaries. Student recruitment and research partnerships are not included. Existing international activities can continue, but can’t expand, said the memo.

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Algonquin projected in November that international student enrolment would be short by 2,400 incoming students in the second quarter of 2024-2025, compared to a target of 7,447 international students.

The shortfall will contribute to a $32-million revenue decrease, compared to the approved annual budget, according to Algonquin’s projections.

On Friday, Brulé said there has been no signal from the federal government that the winds will change in regards to immigration policy.

“So we feel we have to live with the current situation and adapt to it.”

About 60 per cent of Algonquin programs are not eligible for post-graduate work permits based on the federal criteria, which has had a significant impact on the college’s ability to attract international students, said Brulé.

There is the possibility of focusing programs on those who do qualify for post-graduate work programs, such as programs in science, technology, engineering and math programs. But it takes time to conceive a program, get it approved and get students through the program, he said.

Brulé will be making a presentation to inform the board and the college community on Feb. 24. The next board meeting after that has been moved to April 22 to present the budget for 2025-2026.

Earlier this week, Ontario’s 24 colleges narrowly averted a strike after Ontario Public Service Employees Union (OPSEU), which represents the full-time and partial-load professors, instructors and librarians, and the College Employers Council (CEC), the bargaining agent for the province’s colleges, agreed to mediation-arbitration to be completed by the end of June.

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