Quinte News has learned about a strategic plan that Loyalist College is undertaking with a goal of future stability and sustainability.
On Wednesday over the lunch hour, President Mark Kirkpatrick held a virtual presentation and update for staff about the challenges the school is facing.
Kirkpatrick began by putting to bed what he called rumour and speculation.
Is Loyalist College privatizing?“No, we remain a proud, public institution.”
Loyalist College and the partnership with the Development Fund“Our work with the Skills Development Fund reflects our mandate to promote economic and social development in our region. Programs like Elevate Plus and Base31 are examples of community partnerships that help people gain skills and employment.Loyalist College merging with another college“That is not true. We are not in discussions about merging, nor have I been directed to do so. Loyalist is this region’s community college. Our focus is on building a sustainable future that ensures students and businesses have access to high-quality education locally.”
As he made his way to a prepared statement, Kirkpatrick indicated the path of the community college will be defined by its own strategic priorities and regional mandate.
He says there has been a $48-million reduction in revenue through fiscal 2026 and 2027 (April 1, 2025 to March 31, 2027).
“Each Ontario college is facing its own unique and difficult challenges and each college will follow a different path and timeline. One that is best for them. What matters is that Loyalist has a plan to move forward.”
Kirkpatrick says one of the most significant drivers of the financial challenge the college is facing is the sharp decline in international enrolment, also what has been known as the fiscal cliff.
“Colleges Ontario is forecasting a $4.2-billion revenue decline by fiscal 2028, across all colleges. This will result in a sector-wide funding gap of $1.5 billion by fiscal 2028, across the entire college sector. ” He continued, stating they will see another drop by November 2026. “This is the source of the rapid revenue loss we are experiencing.”
“While this reality is challenging, there is some good news. Our multi-year plan anticipated these changes and we are hitting the targets we projected. Even in the face of these declines, we are on the right path to stability and sustainability. We will emerge smaller, stronger, and more focused on what we do best.”
He spoke of a board approved plan to achieve fiscal sustainability by fiscal 2028 “Domestic enrolment will be stabilized between 2,300 and 2,500 students, ensuring a strong local engagement. International enrolment will represent no more than 15 per cent of our total enrolment.”
He added that the goal of the program portfolio is to offer programs that matter most to students, employers, and address the needs of southeast Ontario. “The school plans to concentrate on between 65 and 70 programs that are in line with labour market demand. Approximately 40 per cent will focus on allied health and community services, 25 per cent on skilled trades and advanced manufacturing, 20 per cent on applied technology and business and 15 per cent on selective offerings that meet community needs, such as creative industries and applied sciences.”
“Applied research, professional learning, and community engagement, are not just add-ons, they are critical pillars of who we are becoming and align with our mandate.”
He says the path forward will look at diversifying revenue streams and deepen relevance. They will review enrolment trends, program viability, and community needs as an ongoing discipline.
“We can no longer be everything to everyone. That approach is neither sustainable nor strategic. Instead, we will excel at what we choose to do. Disciplined decision making, continuous evaluation, and a willingness to adapt. These principles will guide us, as we build a future that is strong, sustainable, and purpose-driven.”
“We will consolidate assets to reduce costs, but we will remain a meaningful presence in each region. Belleville will remain our core campus, the heart of Loyalist. At the same time, we will continue operations in Tyendinaga, Bancroft, and Port Hope, leveraging the unique strengths of each location.”
“Our fiscal priorities are clear and they form the basis of Loyalist’s sustainability plan.”
The sustainability plan revolved around three main priorities. They are achieving a positive cash flow, generating annual surpluses, and minimizing new debate. Kirkpatrick says the steps are essential to restoring long-term stability.
“While revenue loss has been rapid, expense reductions cannot happen at the same pace, which makes discipline planning critical.”
The only current debt Loyalist College has is in residence infrastructure and Kirkpatrick says that will be repaid by August of 2027.
“All ongoing capital projects will be completed early in the new year, marking an important milestone in our transformation. For now, any new capital investment will only occur through directed grant funding, such as the Facility Renewals Program or the College Equipment Renewal Fund.” He finished by indicating that the only exception would be a specified donor gift.His statement continued that the college’s plan is built on conservative and realistic revenue assumptions. “We know the province is currently reviewing the funding formula. We are planning based on what we know today. The quarter or grant funding will remain the same. Current sustainability funding will end after fiscal 2027 and will be replaced with a new funding model. The tuition freeze will remain in place throughout fiscal 2028.”
“Over the next several years, Loyalist will introduce new fiscal sustainable programs to restore (domestic) enrolment, strengthen academic offerings, and meet workforce development needs across our region. At the same time, we will continue to suspend non-performing programs to maintain a portfolio of 65-70 strong, viable programs.” He says the current funding formula does not fully cover the cost of educating a domestic student.
The president continued, stating that that is why they are looking at revenue diversification through professional learning, applied research, and community partnerships to supplement core funding.
One a positive note, through all the adversity, the school has faced has been domestic enrolment. Since 2021 there has been an increase, exceeding expectations. “This fall, Belleville and Port Hope campuses reached 2,292 students, above the projection of 2,179 domestic students.”
They are looking at 2,300 to 2,500 students in the not-to-distant future, which Kirkpatrick says is critical for long-term sustainability.
Self-identified Indigenous enrolment also rose 12.5 per cent between the fall of 2024 and 2025.
Loyalist College is also expected to remain the fastest growing college in eastern Ontario, which has been a core message of the school for several years (domestic students – English language colleges).
During his presentation to staff, Kirkpatrick faced the financial challenge of international student cuts head on. “The loss of international student tuition revenue has created a significant gap that cannot be fully replaced. Under the current funding formula, domestic students and associated revenues are not sufficient to cover the cost of delivery. Reducing expenses is not just important, it’s critical to Loyalist’s sustainability plan. Our ability to generate new revenue to offset the loss of international tuition is limited. That means we must take decisive steps to align expenses with revenues.”
“The actions we are taking include a hiring freeze, voluntary and involuntary workforce reductions, program suspensions, and operating-cost reductions across the college. It does mean ongoing workforce reductions will occur. These decisions are extremely difficult and our objective is to approach them with care, respect, and empathy for the people affected.”
He says due to the speed of the loss of revenue, they need to take decisive action.
Loyalist now has two programs for voluntary staff reduction, the Voluntary Exit Incentive Program and the Voluntary Retirement Incentive Program. “These programs are designed to provide options for employees who may consider a change. Expressions of interest must be submitted by December 15, 2025.”
“This year we anticipate a $31-million shortfall in cash from operations. That’s due to the speed of revenue loss, compared to how quickly we could reduce expenses. In fiscal 2027, that shortfall drops to $2 million and by fiscal 2028, we return to a positive cash flow on an annualized basis.”
He says this year the college will have a projected $14-million deficit for fiscal 2026, next year about $10 million (2027). For fiscal 2028, the deficit is expected to be under $1 million. “At the time this plan was developed, we were about $5.4 million short on the cash needed to bridge us through fiscal 2028. To bridge the short-term cash flow challenges, Loyalist has taken a prudent step. On November 24 we entered into a loan agreement with the Ministry of Colleges, Universities, Research Excellence and Security. This is a non-revolving, draw-down loan which provides the liquidity we need to support Loyalist’s recovery plan over the next two fiscal years.”
The maximum loan amount is $25 million, but the school will only be drawing funds as needed. The exact amount, terms, and further details on the agreement are not known. “This is not a blank cheque. It is a strategic safety net. Nothing in this agreement constrains or changes the sustainability plan we’ve built. The loan simply ensures that we have the cash to carry us through this period of transformation and restructuring. This is a one-time infusion of cash.”
Kirkpatrick says they have the loan repayment as part of the school’s multi-year plan to return to a strong financial position.
“We are not just planning for survival, we are planning for renewal. Together we will build a college that’s smaller, stronger, and more focused.”
His presentation was not specific about the number of staff and full-time faculty layoffs, or if further cuts were to be expected. He did indicate there would be no further staff changes for the remainder of the calendar year.
Quinte News will be sitting down with President Kirkpatrick on Thursday afternoon to discuss the board’s decision and more on the future on our college.
