Budget model update 

Memorial is developing a new budget model to strengthen transparency, accountability and understanding of how resources are allocated in support of teaching, research, student experience and service delivery across the university. 

This work was initiated in response to longstanding feedback from members of the university community and external stakeholders about Memorial's current budgeting approach, which has been consistently described as opaque. 

The shadow budget   

As part of this multi-year initiative, Memorial has been conducting a shadow budget exercise for fiscal 2026-27. The shadow budget applies the proposed model to existing financial data to better understand how revenues, costs and resources flow across the institution and test how the model performs in practice. 

The shadow budget is a learning, testing and validation exercise only. It does not affect approved budgets, does not represent final budget allocations, and is not an indicator of future funding decisions. Instead, it provides an opportunity to review results, identify areas for refinement, and build a shared understanding of how the model would function before implementation begins. 

Leader consultation 

The shadow budget phase is generating valuable insights. Early analysis highlights both expected and unexpected variances between Memorial's current budgeting approach and the proposed model. These findings have prompted important discussions among leaders and highlighted the necessity of further review, consultation and validation.  

This is the purpose of the shadow budget exercise and an essential step in developing a budget model that reflects our unique context, mission and operating realities. 

Consultation at this stage is focused on senior leaders and their immediate support staff who have accountability for budgets. The feedback and evidence gathered through this process are being used to identify required refinements, implementation and support considerations as well as any matters requiring further institutional direction. This work will help ensure the model is practical, transparent and positioned to support future planning and decision making. 

To ensure we have sufficient time for review, consultation and validation, Memorial will extend the shadow budget period through 2027 and defer implementation of the new budget model until the 2028-29 budget cycle. The additional time will allow Memorial to complete a second shadow budget for fiscal 2027-28, further validate the model and prepare a robust transition and implementation plan. 

The revised timeline reflects our commitment to thoughtful, evidence-informed decision-making. Over the coming months, leaders will continue working with teams from the Finance, Provost and Transformation Offices to review data, validate assumptions, assess results and identify opportunities to strengthen both the model and the approach to implementation. 

What comes next? 

We recognize that we had committed to sharing shadow budget results with the university community this fall. However, the significant effort underway to validate methodologies, assumptions and initial outputs demands more time.  This is particularly important when we consider that the initial shadow budget results are intended for testing and validation purposes. They are not approved budget allocations or indications of future funding decisions.  

Critically, and in response to feedback received through the review process to date, the initial shadow budget results will not be shared more broadly across the university until the consultation and validation process with academic and administrative leaders has concluded.  Following this process, shadow budget results and key learnings will be shared with the broader university community, along with supporting information to help foster informed discussion and understanding. We anticipate this will be in the winter 2027 semester. 

We are building towards a made-for-Memorial budget model that supports transparency, accountability and informed decision-making while reflecting our unique context, mission and priorities as Newfoundland and Labrador’s only university. The extended shadow period provides the time needed to test the model, respond to feedback, and prepare the transition approach. 

For more information on the process to date, timelines and the model's principles, visit the budget model webpage.