Ontario colleges warn of up to $1.5 billion shortfall and call for immediate funding
Colleges warn a structural deficit up to $1.5 billion by 2027-28 after international enrolment collapses. They want $1.1 billion in operating grants; the province says a funding update is coming.
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By Torontoer Staff
Ontario’s public colleges say they face a structural deficit of as much as $1.5 billion by 2027-28, driven largely by a sharp decline in international enrolment. Colleges Ontario released a pre-budget submission warning that the sector’s financial pressures have already forced program and job cuts and will accelerate without provincial support.
Colleges have trimmed more than $1.4 billion in costs, closed over 600 programs and eliminated more than 8,000 positions in the past year. Conestoga College alone issued roughly 400 layoff notices shortly before the holidays.
How colleges say they reached this point
Colleges point to a combination of long-standing funding gaps and recent federal policy changes that sharply reduced international student numbers. Operating funds are about $7,700 per student below the national average, while domestic tuition revenue is roughly $1,100 lower per student, the submission states.
Colleges Ontario cites federal policy shifts that could cut international enrolment by 70 per cent from 2023-24 levels, potentially removing up to $4.2 billion in international revenue by 2027-28. That drop is central to the sector-wide deficit projection.
This is a crucial moment for Ontario’s public colleges. Colleges are doing everything they can to manage unprecedented financial pressures, but the current funding model is no longer sustainable.
Maureen Adamson, president and CEO, Colleges Ontario
What colleges are asking for
In its submission, Colleges Ontario sets out immediate and near-term requests designed to stabilise operations and protect student access. The package mixes increased operating grants, targeted supports and a call to allow limited tuition increases.
- $1.1 billion in increased operating grants to address the structural funding gap
- Permission for modest tuition increases to help cover rising program costs
- A special fund for rural and French-language colleges
- $100 million innovation fund for priorities such as cybersecurity
Government response and next steps
The provincial government says it has been reviewing the post-secondary funding formula for about a year and plans to announce updates in the coming months. Colleges and universities want that review to deliver predictable funding that reflects rising program costs.
Colleges note the province spends around $13 billion on the post-secondary sector. In 2023 a panel of experts recommended lifting the tuition freeze with an immediate five per cent increase and increasing overall post-secondary funding by 10 per cent. The government has since pledged $1.3 billion over three years and added targeted funding for STEM.
Local fallout and leadership changes
The financial strain has also played out in local disputes and executive turnover. Conestoga College announced the retirement of president John Tibbits this week amid criticism of the college’s reliance on international students and a recent round of layoff notices.
It is a win after relentless public pressure calling for accountable leadership.
Leopold Koff, president, OPSEU local representing Conestoga faculty
Conestoga had been criticised for contributing to a local housing crunch and for the scale of its international enrolment. The college’s board described Tibbits’s departure as a long-deferred and well-deserved retirement, and said he leaves a significant professional legacy.
What this means for students and the labour market
Colleges warn that without new investment, program closures will increase and access for domestic students will shrink. That reduction in capacity threatens the supply of job-ready graduates for sectors that rely on college-trained workers, including construction, energy, mining, manufacturing and health care.
- Fewer program seats, particularly in applied and trades training
- Reduced regional access, hitting rural and francophone communities hardest
- Smaller pipeline of graduates for in-demand occupations
Colleges emphasise that international revenue can no longer be treated as a steady subsidy for domestic programs, and they call for a funding model that reflects the true cost of program delivery.
What to watch next
The 2026 provincial budget is the next key deadline. Colleges are urging immediate action to prevent further closures and layoffs. The government’s upcoming funding update will indicate whether it intends to move beyond targeted pots of money and address the sector’s broader structural gap.
If the province does not provide substantial new operating support, Colleges Ontario says cuts will continue and access to training for domestic students will be put at risk. For now, institutions are managing short-term reductions while pressing the government for a longer-term fix.
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