Conestoga College has reported a sizeable budget surplus in its yearly financial report as it continues to wrestle with the federal cap on international student enrolment.
The college’s consolidated financial statements for the fiscal year ending in March of this year were released late on Thursday, unveiling a surplus of approximately $121 million in a year where the revenue from tuition dropped considerably.
“Canada’s rapidly declining popularity as an international education destination has made the fiscal situation even more problematic: no Ontario college has been able to achieve its allotted international enrolment,” said John Tibbits, president of Conestoga College, in a message to staff following the release of the annual budget report.
Tibbits added that, since the fall semester of 2023, their international student enrolment has dropped by 20,000 students, equaling a financial loss of approximately $450 million. In their financial reporting, their tuition revenue decreased from about $682 million in 2024 to $563 million in 2025.
The college has made a number of cuts to staff, including cuts to an undisclosed number of administrative staff in April, nearly 180 support staff employees in May, and four executive staff in July. Those cuts aren’t included in the financial report released on Friday, but for the fiscal year ending in March, the amount it spent on professional and contract fees fell from more than $115 million in 2024 to about $62 million in 2025.
According to Tibbits, the college is anticipating a budget deficit for the 2025/26 financial year, “like most other public post-secondary institutions in Ontario.” He added that the college will address these financial pressures “through decisive action to reduce labour and operational costs.”
In the fiscal year that ended in March, the college actually increased its spending on salaries and benefits, up from more than $399 million in 2024 to about $436 million in 2025. Tibbits himself also received a roughly 28.5 per cent pay bump last year, earning more than $636,000 in 2024.
“These difficult but necessary decisions to align resources with the current reality are not a reflection of dedication or performance and the value brought to the institution, but rather our responsibility to the long-term sustainability of the programs and services that help us fulfil our mission,” said Tibbits.
The college is planning to invest roughly $145 million this year in capital projects at a number of its campuses, including locations in Cambridge, Waterloo, and Brantford. Importantly, that list doesn’t include Guelph.
This week, the college has announced that it’s stalled plans to expand into the Royal City.
“The Conestoga campus located at 130 Macdonell St. has been deferred,” said Erika Kastner, associate director of corporate communications for Conestoga College, in an email to 570 NewsRadio. “The college remains committed and will proceed when student enrolment allows.”
The City of Guelph appears to be patient in response to this deferral.
“While the campus opening has been deferred, we continue to support Conestoga’s efforts to establish a strong and sustainable presence Downtown,” said Christine Chapman, manager of economic development for the City of Guelph. “A successful launch will bring long-term economic benefits to Guelph, and if that takes more time, it’s time well spent.”
The college’s focus has shifted to increasing the number of domestic students enrolled in their programs by developing new programs and building infrastructure. A report sent to staff this week indicated that Conestoga’s domestic enrolment numbers have increased by 73 per cent since 2023.
That same report also indicated that their international student enrolment has declined by 62 per cent since 2023.