Red Deer Polytechnic is projecting an estimated $10-million deficit for its 2025/2026 budget, which will result in program suspensions and a reduction in staff.
On Wednesday, Feb. 5, RDP issued a statement highlighting the reasons for this estimated deficit for the fiscal year ending June 30, 2026: Refugee and Citizenship Canada impacts to international student enrolments, rising inflation and an anticipated zero per cent increase to base grant funding from the Government of Alberta.
"We are working with the Government of Alberta to determine a sustainable path forward," the statement said.
"As a result of the projected deficit RDP will be looking at making structural changes. This includes a comprehensive operations and program review, which will include program suspensions, and unfortunately, a reduction in staff and operating budgets.
"RDP is committed to ensuring all changes continue to provide our students with an excellent learning environment, and that we will continue to work toward achieving our 2030 Strategic Plan: Productivity and Social Impact."
Stuart Cullum, RDP president, said the post-secondary system across Canada is "experiencing a significant impact" as a result of fiscal pressures, noting Red Deer Polytechnic is no different.
"We feel that our institution is strong and we're on a good path with a strong strategic plan, so we'll get through this period. But it is a period where we'll have to address a significant deficit, and we'll address it in a variety of ways," Cullum said.
Red Deer Polytechnic is currently in the annual planning process to prepare its operational budget for the 2025/2026 academic year — the post-secondary institution’s leaders shared budget planning information with all faculty and staff on Feb. 5.
"We're facing a $10-million deficit, which is a sizable deficit for our institution and our budget," said Cullum.
"We're going to be to proposing a managed approach. We're going to address some of that deficit in the upcoming year, some more the following year and then the final bit in a third year. Our intention is to utilize our savings in order to bridge to balance over the next three years."
This 2025/2026 budget will need to be approved by RDP's board of governors, as well as the Ministry of Advanced Education due to the post-secondary institution positioning a budget utilizing its reserves.
"Before the end of June, we're going to have to come up with around $5 million of savings. That, unfortunately, means there will be some permanent job losses and program suspensions in order to facilitate those savings," said Cullum.
The programs being suspended will be determined by the end of next week.
Cullum noted RDP has launched seven new programs in 2024.
"Our expectation is that as we recalibrate around these fiscal challenges, we're going to continue to grow programming and develop programming around our four areas of focus, and what's needed for our community and the industries that we serve," said Cullum.
"This in no way puts Red Deer Polytechnic off its path towards contributing towards Alberta's and Central Alberta's economy, as well as the community. We just need to address this (deficit) and calibrate the institution accordingly."
