Holland College questions fairness of province giving $2M grant only to UPEI

CBC

11-06-2025

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The president of Holland College is not happy that the P.E.I. government stepped in with a $2-million grant to the University of Prince Edward Island to cope with the loss of revenue from international tuition fees, but Holland College got nothing.
"It doesn't seem fair... I support closely what the administration of UPEI is doing and I think that they are doing some cool things after a very difficult period of time, but no, it doesn't seem fair," said college president and CEO Sandy MacDonald.
"I guess I'm qualifying my answer because I'm hoping the province will take the opportunity in the next fiscal year to balance things out, so I'm hoping it will be made fair."
MacDonald has estimated that the international student population at the college will plummet by 85 per cent over the next two years as federal changes to student permits kick in, designed in part to relieve a nationwide housing crunch. From a high of 800 international students, Holland College enrolment is projected to fall to 140 students by September 2026.
That means a huge drop in revenue, leading the college to phase out eight programs and lay off 25 staff.
Three kilometres away from Holland College's main campus in Charlottetown, at the University of Prince Edward Island, officials have raised tuition fees and made some cuts.
But they also received a one-time grant of $2 million from the Department of Workforce, Advanced Learning and Population to help offset the loss of international tuition fees, estimated at $3 million this year.
It was included in UPEI's 2025-2026 budget as a line item called International Enrolment Reduction Support. UPEI's vice-president of administration and finance, Tim Walker, said it will be used for things like recruitment and retention, enrolment planning, and a hunt for new revenue streams.
"This important support gives UPEI the opportunity to consider more options and take action during this fiscal year, ensuring we have a stronger foundation for the next budget planning cycle (2026-27)," Walker said in an email to CBC News.
MacDonald said getting a similar $2 million would have made a huge difference to Holland College.
"We have been underfunded for many years," he said. "We've made the argument many times. It goes back all the way to the auditor general's report from 1999; Wayne Murphy said at the time we had a structural deficit."
Why the upfront cost is multiplying for international students on the Island
1 year ago
Duration 3:59
Both UPEI and Holland College are increasing tuition deposits for international students. Lornie Hughes, the registrar at Holland College, explains why.
Expected funding did not come in
He said in 2023, the college and the province made a deal that would provide extra money over the next three fiscal years to help the college catch up with its deficit. Then it would go back to a lower funding level.
The first year, Holland College did get a 9.5 per cent increase and $3 million more for its capital budget. This year, it was expecting the same.
"We did not get that. We got a 6.5 per cent increase and half of the $3 million in capital," MacDonald said. "We were disappointed, but we understood the province is under financial constraints, so we had to accept that."
Would the $2 million have made a difference in terms of those decisions? Of course it would. — Sandy MacDonald
Then came the realization that UPEI had asked for — and gotten — the $2 million grant.
"We've suspended eight programs, we've cut portions of three other programs," MacDonald said. "Those were the results of the deficit that we faced this fiscal year. So would the $2 million have made a difference in terms of those decisions? Of course it would."
As for the future, MacDonald said the college will ask for — and hopefully get — some International Enrolment Reduction Support funding of its own for 2026-2027.
"Certainly we will have a significant deficit again this year," he said. "I've spoken to the province since the budget come down and they've said, 'We're willing to work with you.'
"So if UPEI was getting a one-time grant for this issue this year, certainly we would be hoping to get something similar for next year."
Cuts at Holland College will affect all union members, UPSE president says afterweekend meeting
2 months ago
Duration 2:16
The news came late Friday: Holland College said it would freeze some programs and downsize others because caps on international students have led to the P.E.I. college is taking in less money. Over the weekend, the president of the college met with union officials like Karen Jackson of UPSE (shown) to discuss what happens next, especially with the 35 jobs that will be affected. CBC's Stacey Janzer reports.
Province's response
CBC News reached out to the provincial government about the grant to UPEI and MacDonald's concerns.
"Holland College did not receive funding in the 2025-26 academic year for an international enrolment reduction support grant," a spokesperson replied by email. "The province is working closely with post-secondary institutions to help address overall enrolment challenges and the impact of international student reductions...
"All funding requests submitted to the province undergo a thorough review and consideration process. Holland College did receive a 6.5 per cent increase in its core operating funding for the 2025-26 academic year to help address operational needs.