Frequently asked questions

Below is a list of questions and answers heard from faculty and staff. This page will be updated regularly.

If you have questions about Memorial’s budget measures that are not answered, please fill out this form. Questions received via this form are anonymous and will be used to inform future communications. Contact your supervisor with questions specific to your personal employment situation. 

Updated: May 21, 2025


General

The 2025-26 budget balances at $468.6 million to support the university (excluding Faculty of Medicine which is funded through the Department of Health and Community Services).  

In order to achieve this balanced budget, Memorial must reduce its expenditures by $20.85 million. This is a permanent reduction.   

The university’s expenses are higher than its revenues and this is not sustainable. Based on this budget, we are now focusing on the future direction of Memorial University, its strategic priorities and the structural changes that are needed. 

The tuition offset grant was funding provided by government to maintain a tuition freeze. The new undergraduate tuition framework was implemented in fall of 2022, meaning that the tuition freeze was eliminated.  

In 2021-22, the government announced that the $68.4 million annual tuition offset grant would be phased out over five years, starting in 2022-23 with an annual incremental reduction of $13.68 million per year. In response to requests to the government by the university to not reduce the operating grant due to the forecasted enrollment decline and subsequent tuition deficit, the government paused the $13.68 million grant reduction for 2025-26. In other words, government is not cutting Memorial by $13.68 million in 2025-26 which means that the reduction in funding will be phased in over six years, not five years.  

The university has not replaced the cumulative annual cut as of 2024-25 of $41.04 million with increased annual tuition at the higher rates (even with including the 4% inflationary annual increase).  

It would result in an additional permanent reduction of $2.2 million in annual tuition revenue and increase the current 2025-26 budget gap (and portfolio reductions) of $20,855,005 to $23,055,005.  

For the past number of years, there have been a series of actions taken to reduce costs. This includes reducing some senior positions and restructuring within some portfolios to make them more efficient. 

Next steps are for each portfolio to receive its budget allocation. They will then meet with the leaders in their units to determine actions that need to be taken to address the budget deficit. This will include conversations about the programs that we offer and the viability of some positions.    

Research at Memorial is often funded by external sources, including federal funding agencies, provincial and federal government, business and non-profit organizations.   

In the provincial government’s 2025 budget, the Operating Fund includes a $4.75 million Research Support Fund (RSF) program federal grant, which is an increase of $59,165 over 2024-25.   

In addition, the Federal Research Support Fund is budgeted at $4.75 million, a modest increase from 2024–25, helping offset indirect costs associated with research activities. 

Portfolio allocations will come by May 22 to the vice-presidents. From there, VPs will provide the allocations to their unit leaders. 

The $9.0 million shortfall reflected the budgeted decrease in tuition and student-related fee revenue  for 2024-25. This figure accounted solely for tuition revenue losses; the impact of the rising expenditures was not addressed in the previous update. The development of the 2025-26 budget includes a continuation of the trend towards lower enrolment and higher costs.  

The $20.85 million budget reduction also includes a $1.1 million government general grant reduction and inflationary costs in items such as energy, insurance, maintenance contracts, IT system maintenance and library holdings. 

In 2021-22, the government announced that the $68.4 million annual tuition offset grant would be phased out over five years, commencing in 2022-23 with an annual incremental reduction of $13.68 million per year.  For 2025-26, the university was anticipating a $13.68 million permanent reduction. In response to requests to the government by the university to not reduce the operating grant due to the forcasted enrollment decline and subsequent tuition deficit, the government paused the $13.68 million grant reduction for 2025-26.  The university is anticipating that each of the next two fiscal years (2026-27 and 2027-28) will include a $13.68 million grant reduction. The $68.4 million annual grant will be reduced to $0 over 6 years rather than 5 years.

Using the $13.68 to help transform the university is a prudent approach with this one time pause in this reduction.  

Discussions and consultations have been ongoing for the past few months. Now that we have an approved budget, consultations will continue regarding the allocations, the actions to reduce our expenditures and the investments required in order to become a more sustainable institution.  

We will be investing in continuity of program offerings, as well as student recruitment, retention and engagement to ensure our students continue to thrive.  

Any budget action taken will be analyzed for impacts on university operations, as well as the effect on the student experience and academic quality. 

With careful planning, fiscal restraint, re-allocation of resources and a new approach to budgeting we will become financially sustainable. 

To do this, we are working collaboratively with units to maintain a positive, innovative environment and create a forward-looking university that is responsive to student needs, fiscal realities, enrolment changes and the needs of the province. 

Next steps for the 2025/26 will include continued consultation to determine the actions needed to address the $20.85 million reduction.   

Portfolio leaders will continue to consult with their unit leaders on budget allocations and the impact for their respective units.  

The Board of Regents will be provided with a cost summary of the actions being taken to achieve the $20.85 million expense reduction in the approved 2025-26 budget. This summary will include impacts on university operations, to demonstrate any impacts on the student experience and academic quality. 

Focused discussions are occurring around the future direction of Memorial University, its strategic priorities and structural changes. That will include a conversation about the programs that we offer and the viability of some positions.  

Strategic action is required to envision Memorial as a university that thrives in a world that is undergoing significant economic, political and societal changes. This will involve budget reductions and investments to ensure the academic mission of the institution is maintained and supported as efficiently as possible.    

The Board of Regents approved the 2025-26 operating budget, and they are focused on decisive action using strategic investments to drive the transformation toward a more efficient, sustainable and learner-centric institution. As part of that, up to $3.9 million of the $13.68 million one-time pause in the government tuition offset grant will be directed to contractual teaching positions for the 2025-26 academic year to ensure continuity of program offerings, as deemed critical, for our students. The balance of the $13.68 million ($9.78 million) will be used for the following initiatives:  

  • Enhance focus on student recruitment, retention and student engagement; 
  • Enable comprehensive business transformation to streamline and consolidate operations and secure long-term institutional sustainability; 
  • Make critical technology improvements to modernize the institution and; 
  • Engage in robust change management to ensure effective and timely implementation of transformation and technology initiatives. 

 

No, Memorial's budget shortfall will not be solved by short-term pauses of funding. 

In the medium- to long-term, focused discussions need to occur around the future direction of Memorial University, its strategic priorities and structural changes.  

We will require both cost-cutting measures, revenue generation and investments to ensure the academic mission of the institution is maintained and supported as efficiently as possible.  

The support from Budget 2025 gives us an opportunity to focus on deferred maintenance. It will also enable the institution to use the pause of the $13.68 million cut for one year to begin the changes that need to be made.   

The funding received for collective agreements as part of the 2025 provincial budget is for collective bargaining agreements that were previously negotiated and announced.

 

They are $2,932,000 for negotiated collective agreement increases for MUNFA (2% September 1, 2025);  and $4,033,900 for negotiated collective agreement increases for CUPE, NAPE, Non-Bargaining, and Management & Professional Staff (2% April 1, 2025).

 

Yes, but we are also proud that Memorial remains the most affordable university in Atlantic Canada, and offers outstanding programs and experiences. And we are proud of our outstanding employees who are very dedicated to and feel passionate about Memorial.

There will need to be cuts but we will also need to do things differently. How we are structured, how we offer services and the processes that we use. All of these things need to be considered as we work together to ensure we move forward in a way that continues to deliver quality education and support to our diverse student community. 

For the past number of years, there have been a series of actions taken in order to reduce costs. This includes reducing some senior positions and restructuring within some portfolios. A limited hiring program is in place and carryover use has been restricted.  

A new Budget Model Working Group has been established to consider a different way of budgeting rather than based on historical spending patterns. 

Given the foundation changes we are seeing in the university sector—declining international students coming to Canada, questions regarding the value of a university education, increased competitiveness—more work needs to be done.  

 

The OAG reports have provided a lot of recommendations for improvement. We are working on them and they will help to create a more efficient and lean institution. Some of the recommendations also require investment in things such as technology.  

The Board of Regents is ultimately in charge of Memorial’s budget and how it is allocated to units.  

Given the current financial constraints, it will require the entire university community to develop ideas for our future in a way that keeps Memorial sustainable. 

No. We are taking action now to create a more sustainable Memorial. Many universities across the country, and across the world, are having to reconsider the programs they offer, how they offer them, the administrative structure that supports the academic mission.

The investment of $70 million from the provincial government will have a significant impact at Memorial.  

In addition to those critical upgrades, the university has a program in place to monitor, audit, prioritize and complete infrastructure work, and we complete priority projects annually based on the available funding.   

The infrastructure challenges Memorial University is experiencing are not new, or unique to our university. We will continue to work towards addressing these challenges as resources permit.  

 

Our deferred maintenance program prioritizes projects with the greatest and most urgent need. We monitor, audit, prioritize and complete infrastructure work, and we complete priority projects annually based on the available funding, which is typically in the millions. 

At the March meeting of the Board of Regents, the newly created Campus Renewal Fee committee received approval to proceed with the recommended 2025-26 Physical and Digital Infrastructure project allocation totalling $7.7 million. The approval was conditional upon receipt of the funding.  The provincial government grant included $7.8 million for the 2025-26 fiscal year. Based on this, the Campus Renewal Fee committee will commence work on the approved projects, which are listed on our website. 

 

These changes will not address the budget shortfall for this year. They are an operationally manageable approach to begin the change process at Memorial. 

The budget shortfall for 2024-2025 is expected to be $9.4 million from tuition revenue. With anticipated other shortfalls, such as special fees, we anticipate a budget shortfall of about $12 million.

 

There are no plans for an early or voluntary retirement program.

The pension plan is a separately trusteed plan and is administered separately from the university's operating budget. The budget update has no bearing on the pension plan or its funding. The pension plan is covered by the Memorial University Pensions Act. 

We meet regularly with government to discuss a number of topics and support for Memorial is something we are always advocating for. Changing federal restrictions for international student visas, a reduction in Memorial’s tuition offset grant and increasing inflationary costs have created this situation that requires decisive action to protect Memorial’s academic mission.   

In the short- to long-term, focused discussions need to occur around the future direction of Memorial University, its strategic priorities and structural changes.  

We know that this will require both cost-cutting measures and investments to ensure the academic mission of the institution is maintained and supported as efficiently as possible.    

In the coming weeks and months, we will be looking to the university community for serious and bold ideas for Memorial’s future. 

In the coming weeks and months, we will be looking to the university community for serious and bold ideas for Memorial’s future. We will require both cost-cutting measures and investments to ensure the academic mission of the institution is maintained and supported as efficiently as possible.  What that looks like will be part of our longer- term plans. 

Our plan is to develop long-term plans collaboratively and with input from the university community.  There isn’t currently a plan in place to assess academic programs. However, we need to ensure a positive, innovative environment and create a forward-looking university that is responsive to student needs, fiscal realities, enrolment changes and the needs of the province. 

The short-term measures just announced do not include unit funding cuts. 

We are putting various processes in place to deal with the hiring pause and carryover restriction. We have plans in place for a Senior Leadership Council planning day to discuss these topics and the future of Memorial. We are in the process of setting up opportunities for faculty, staff and students to contribute to the budget discussions in the near future. 


The factors to be considered (rationale for hiring) for administrative roles, as well as the hiring process, are outlined on the updated Justification for Hire Form-Revised Process which is available on the my.mun.ca forms portal under the recruitment tab. This process is as similar to the original process as possible; however, an extra step has been added with the requirement of receiving President’s Executive Council approval. 

Please note, the original Justification for Hire form is also available in the portal, this version of the form should be used for contract extensions only. 

 

We will be working hard to envision a new Memorial. Currently, there are measures in place to ensure due diligence and awareness of budgetary issues. 

Extension of current non-academic contracts may continue with appropriate diligence. This diligence should include whether or not the positions are budgeted.  

There are currently a number of searches and recruitment activities ongoing; those that have already been advertised will continue through the hiring process.    

Secondments are contracts that can be extended with due diligence. If a contract is to be converted into a new permanent position, it would need to go through the exemption process.  

Contract renewals are permittable. We are asking units to ensure that they review extensions with this budgetary constraint lens.  

Any positions externally (e.g. grant) funded are not subject to the limited hiring program and will continue to be filled as normal. 

Yes. Per course instructors (PCIs), teaching term appointments, and reappointments/extensions to existing regular term appointments are exempt from the hiring pause. 

Contract extensions are permitted but units should consider the need for the extension in light of budgetary constraints.  

The majority of employees with contracts ending Dec. 31, 2024, should have received confirmation of extension at this point. If they have not, they should contact their manager to discuss further. Contracts are not impacted by the limited hiring program. 

Contract extensions should follow the usual process of review. We are asking units to ensure appropriate diligence is given when looking at renewal, given our current budgetary constraints.  

There is need for investment in order to help modernize administration. We will be gathering input from the university community on how we can work collaboratively to maintain a positive, innovative environment. There is an exemption process in place, in part, to avoid this scenario. We cannot continue to do the same with less.  

The motion from the board is to: “Institute a limited hiring program in new tenure track and new regular-term appointments and new/vacant administration permanent and contractual positions, to be evaluated April 30, 2004.” Recognizing that there will be critical positions that will need to be filled, a process is being  put into place to provide exemptions to this directive.  

No. It is a pause on hiring of certain positions with an exemption process in place. Hiring new/vacant administrative permanent and contractual positions, tenured, tenure-track, and new regular-term appointments on all campuses as well as to Marine Institute instructors and research scientists is restricted. A process will be put in place to evaluate new position requests that are necessary to support the mission of the university. 

New and vacant positions are paused. Exemptions to fill a new or vacant position will have a process to go through for approval.    

Extensions to contracts are not paused. As always, units are to review extensions carefully, considering things such as:  

  1. The position either directly supports operational needs or deliverables which cannot be deferred.
  2. The impacts of not extending the contract are significant and are deemed unacceptable 

We encourage all ideas to ensure Memorial continues as a viable and innovative institution.  

Searches that have been paused due to the Indigenous verification policy will be paused until a policy is in place. That policy will not be in place before April 30, 2025.