UBC’s Board of Governors (BoG) approved the university’s $3.98 billion budget for the 2025/26 fiscal year at their meeting on March 28.
The budget is separated into the university’s operating revenue, money that can be invested in programs and departments, and the university’s non-operating revenue, which goes toward funding research, capital projects and student bursaries. UBC’s operating revenue this year amounts to $2.72 billion, and the non-operating revenue to $1.26 billion.
UBC’s expenses are listed as employee salaries, supplies, scholarships, utilities, professional fees, and minor debt costs. Employee salaries account for the largest source of expenses, making up 74 per cent of all expenses.
UBC’s revenue comes from domestic tuition, international tuition, sales and services, and government grants and contracts. Domestic tuition accounts for around 16 per cent of the operating budget, international tuition 22 per cent, sales and services 19 per cent and government grants and contracts around 43 per cent. Government grants and contracts account for the biggest share of UBC’s revenue, while domestic tuition accounts for the smallest share.
University officials reported a decrease in international student enrolment with a projected 8 per cent reduction at the UBC Vancouver campus and a 6 per cent reduction in international enrolment at the UBC Okanagan campus for the upcoming year. Enrolment of international students also decreased in the 2024/25 year, highlighting a worrying trend for the university as its revenue shrinks year on year.
Other challenges facing the university include US tariffs affecting the price of goods, and a weak Canadian dollar which could result in higher expenses.
Additionally, the BC Federation of Students recently held their annual advocacy week where student associations representing 325,000 students across BC called for reinvestment into post-secondary institutions as six universities – among them SFU and Camosun University — projected multi-million dollar deficits this year.
Despite the drop in international student tuition funds, the budget projects a surplus of $80 million. However, this sum is a reduction compared to last year’s surplus and it cannot be allocated to the operating budget, but rather saved for future expenses such as research commitments or the amortization of capital assets, according to the budget report.
To tackle financial strain, the university said it will focus on four key areas next year: workforce management, operational cost reduction, program adjustments, and faculty planning and support.
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