Urgent: University of King’s College Faces $1.8M Deficit Crisis

BREAKING: The University of King’s College in Halifax is facing an urgent financial crisis with a staggering $1.8 million deficit, President Bill Lahey announced just hours ago. If immediate changes are not implemented, the university could deplete its funds within “single digits” of years.

Lahey stated that escalating salaries and rising operational costs are overwhelming the institution’s budget. Although provincial funding has seen a slight increase, it has failed to keep pace with inflation, leaving the university in a precarious position. “A significant part of our cost escalation… is the same increase in the cost of living that everyone else is experiencing,” he explained.

The crisis is exacerbated by a sharp decline in both domestic and international student enrolment. In 2023, the university had approximately 45 international students, but this academic year, that number has plummeted to just 15. This drastic drop accounts for an estimated $700,000 loss in revenue.

“We would still have a difficult situation on our hands, but it would be less challenging than what we currently have,” Lahey said.

In response to the dire financial situation, the university has enacted a hiring freeze and frozen Lahey’s salary. Additionally, an external adviser has been brought in to assist a school committee focused on financial stabilization. The university is also exploring collaborative strategies with Dalhousie University, which shares its campus, to boost enrolment and reduce costs.

Adding to the urgency, the King’s Students’ Union recently declared the university is in a “financial emergency,” warning that it could run out of savings by the 2026-27 school year. Student Union President Ellie Anderson revealed this information during a board of governors meeting, prompting her to raise concerns about the university’s financial transparency.

Despite claims from the student union regarding the impending financial collapse, Lahey has disputed the assertion that the university is one year away from exhausting its funds. However, he acknowledged the seriousness of the $1.8 million deficit, particularly for a small university like King’s.

As students become increasingly aware of the financial challenges, they are questioning the university’s priorities, particularly regarding a planned $95 million multi-use building project. Anderson noted, “Students are coming to us and asking, ‘Why are we looking at the corner building when we have a resident building that needs to be updated?'”

Lahey assured that preliminary work on the new building is funded through donations and government contributions, not the university’s operating budget. He emphasized the necessity of updating facilities to compete for both domestic and international students amid decreasing enrolment numbers.

Anderson echoed the need for attracting more Canadian students but expressed concern over the potential impact of budget cuts on the student experience. “We have small-sized classes and conversations with professors who are experts in their field. It’s a small and close-knit community. What are the things that make King’s special and how do we keep them?”

The situation at the University of King’s College underscores a broader trend affecting many institutions across Nova Scotia, as they grapple with similar financial difficulties. As developments unfold, the university community remains on high alert, awaiting decisive actions that will shape its future.

Stay tuned for updates as this developing story progresses.