Stabilization in an Ever-Changing Landscape

—From the desk of Andrea Hall, Executive Director, Finance, CFO

Selkirk College is entering the final six weeks of our 2026 fiscal year, which runs from April 1 to March 31. During this time, the Finance team is bringing together all revenue, purchasing and payroll activity to confirm our year-end financial position, while also finalizing the operating budget for fiscal year 2027 and beyond.

I want to take this opportunity to share where we are today, acknowledge the significant efforts made across the college and outline the financial realities we continue to face as we plan for the year ahead. 

Current Fiscal Year (2026)

At this time last year, Selkirk College was facing a significant and unexpected financial challenge due to changes in federal immigration policy. We were required to respond quickly to an anticipated deficit of approximately $9 million for the fiscal years 2026 and 2027. The timeline was tight, and the decisions required were difficult.

Because of the creativity, collaboration and commitment shown across the institution, we were able to balance the budget for fiscal 2026.

As we approach year-end, I am encouraged by the positive trend across our operations. The cost-saving measures and adjustments made throughout the year are having a meaningful impact. In particular, we are seeing the following results:

• Advocacy for additional funding and special projects: $2,015,000, including grants for health programs, micro-credentials and more.
• Student enrolment higher than budget: $1,400,000 (Domestic $250k, International $1,150k). 
• Operating cost reductions: $700,000.
• Reduction in printing and mailroom costs: $66,000.
• Reduction in travel: $50,000.

Together, these changes have positioned us to meet our goal of a balanced budget for this fiscal year and may result in a small net surplus as of March 31, 2026. This surplus is needed to offset an accumulated unrestricted deficit from prior fiscal periods that Selkirk College is required to address.

This outcome reflects a tremendous collective effort, and I want to sincerely thank you for the thoughtful and often difficult changes you have made.

Looking Ahead to Fiscal Year 2027

While there is much to be proud of this year, our financial challenges are not yet behind us.

In fiscal year 2027 (ending March 31, 2027), we anticipate a further reduction in our international student population. Based on current projections, this will result in an additional $4 million reduction in revenue.

In late 2025, the Province of BC also announced a post-secondary sectoral review, which includes Selkirk College. While the outcome of this review is not yet known, it may result in further changes or required adjustments. Until more information is available, we must plan based on what we know today—and what we know is that additional steps will be required to bring next year’s budget into balance.

Understanding our Revenue

Selkirk College operates with an annual budget of approximately $70 million, supported by the following primary revenue sources:

• Provincial operating grant: approximately $38 million
• Tuition revenue: approximately $13 million (2025: $16.6 million)
  • International tuition: approximately $7 million (2025: $10.7 million)
  • Domestic tuition: approximately $6 million (2025: $5.9 million)

The projected decline in international enrolment translates into a cumulative $9 million tuition and associated revenue reduction over the fiscal years 2026 and 2027.

The college continues to explore opportunities for responsible revenue generation. These opportunities often require upfront investment and capacity, which must be carefully balanced as we stabilize our core operations. We look forward to advancing these initiatives once we are on firmer financial footing.

Cost Reduction Efforts

The college is undertaking a comprehensive review of budgets across all areas, services and departments. Actions underway include:

• Reviewing business processes to identify potential service adjustments.
• Evaluating software purchases and licensing agreements.
• Leveraging BCNet purchasing options to benefit from sector-wide economies of scale.
• Reviewing our physical footprint to ensure efficient use of space and resources. Savings from campus closures will begin to be realized in 2026 and 2027.

Salaries and benefits represent our largest operating expense—approximately $52 million, or 74% of the total budget in fiscal year 2026. While service and operational reviews are essential, we recognize that addressing salaries and benefits is part of the conversation once all other cost-reduction strategies have been carefully considered.

Voluntary workforce reduction processes were offered again this year, including a faculty and instructor canvass conducted in January 2026 in areas affected by program reductions or suspensions due to low enrolment.

We have not implemented a full hiring freeze, as we must fill certain positions to maintain essential services and support student learning. For example, faculty or instructor vacancies in full programs must be addressed to ensure continuity for students. Find additional details about the position review process in the frequently asked questions.

Your Ideas Matter

As Selkirk College continues to navigate this period of financial uncertainty, please know that your efforts, adaptability and engagement are deeply appreciated.

It is through ongoing dialogue and shared problem-solving that we will move forward. I encourage you to share ideas for cost adjustments or revenue opportunities with your deans, directors or supervisors. You are also welcome to reach out directly to me or to Vice-President, Education & Students, Taya Whitehead and Vice-President, College Services, Lareena Rilkoff.

Thank you for all that you continue to do. The impacts of your work are visible, and I am grateful for your willingness to work together during this challenging time.

Andrea 

Executive Director, Finance, CFO

Budget FAQs 

How did we get here? 

Selkirk College has, like many other post-secondary institutions in the province, actively recruited international students over the past 10–15 years to:

• Offset a known reduction in domestic students.
• Graduate additional trained workforce for our communities.
• Bring additional vibrancy to our region.  

This increase in international students has also shifted our revenue from 2% ($800k) of our overall revenue budget in fiscal 2012 to 15% ($10.8 million) in fiscal 2025.  

The college has $20 million in cash as of March 31, 2025. Can that be used to balance the budget?

The cash balance on the financial statements comprises committed funds for capital and other special projects, as well as timing differences used to settle accounts payable. When those amounts are accounted for, no unrestricted cash is available to balance the operating budget.

The college has $11 million in accumulated surplus as of March 31, 2025. Can that be used to balance the budget?

No, the funds are restricted and cannot be used to balance the operating budget.

The accumulated surplus balance has enabled us to reinvest $16 million in our buildings over the years.

The unrestricted accumulated surplus was actually in a net deficit position for unrestricted operations of $1.2 million as of March 31, 2025. We must create operating surpluses to build our unrestricted surplus into a stable, sustainable position.

Can the college run a deficit? 

As required under Section 31 (1) of the College and Institute Act, we are working to propose a balanced budget for approval by the Selkirk College Board of Governors. We know that it will take time before we can fully adjust our costs to offset revenue reductions.

Further deficits would require approval by the Ministry of Post-Secondary Education and Future Skills and the Selkirk College Board of Governors. 

How will this impact my department/area? 

Please connect with your supervisor, dean or director with specific questions about how the enrolment decline will impact your area. 

Is there a chance the government will bail colleges out? 

The provincial government is currently projecting a $10.2 billion deficit for fiscal 2026–2027. We do not expect it to offer colleges any financial assistance to offset the impacts of federal government policy changes.