Despite the unprecedented pandemic, the profits of universities across the country have increased.
Surpluses of more than $7 billion in the 2020-2021 fiscal year have been reported by Universities throughout Canada.
According to a report from the National Statistical Office released on the 10th, these universities quickly switched classes to online learning during the outbreak of the corona virus and showed higher-than-expected results despite a decrease in the number of international students and dormitory registrations and campus closures.
The biggest sources of income for universities were local government subsidies and tuition. However, return on investment in stocks and real estate reached $5.4 billion, a significant increase from the previous year ($44.3 million). Financial experts estimate that universities have benefited greatly from the stock market rebound in 2021.
During the two-year pandemic, declining enrollment and increased spending on public health measures have been a major concern for universities. Despite these concerns, however, the report said imports rose 12.8% year-on-year to $46.3 billion, while spending fell 3.8% year-on-year to $39 billion, resulting in a total surplus of $7.3 billion.
The University of Toronto reported its revenues in 2020 had increased by 10% over the previous year. Of this, about 50% came from student tuition and fees, and other major sources of income were local government subsidies (18%), investment income, donations, and research subsidies.
On the other hand, universities have been able to significantly reduce campus operating costs through distance learning during the pandemic, but these costs are expected to rise again as face-to-face classes resume after the coronavirus restrictions are lifted. “It will be very costly to get students back to campus,” said Sue Wottel, president of the Association of Ontario University Teachers.