Kwantlen Student Association Grapples with Budget Deficit, Shifts Spending Priorities
The Kwantlen Student Association (KSA) is facing a challenging financial landscape, having ended 2025 with a $2 million deficit. As the association proposes its 2026 draft budget, significant shifts in spending are apparent, reflecting a need for increased financial stability amidst declining enrollment projections.
Overspending in 2025: Where Did the Money Go?
A review of the 2025 financial statements reveals substantial overspending in key areas. Wages and benefits for elected officials exceeded the budgeted amount by over $200,000, reaching $947,848. Staff wages also saw a dramatic increase, with actual spending of $1,561,836 against a proposed $800,000. Perhaps the most striking overspend occurred in legal fees, where $788,734 was spent despite an initial budget of just $200,000. This marks a continuation of high legal costs, with the KSA having budgeted at least $200,000 for legal fees since 2023.
The authority for approving legal fees has been broadened to include the entire executive committee – a change attributed to the increased expenditures. Vice-President Finance and Operations Manmeet Kaur explained that these changes, along with utilizing reserves from the 2026-2027 fiscal year, are necessary to address the projected deficit.
Proposed Budget Cuts and Reallocations for 2026
The 2026 proposed budget outlines a series of cuts and reallocations aimed at curbing spending. The events budget is slated for a nearly 33% reduction, dropping from $250,000 to $95,000. Authority over KSA events has also shifted from the executive director to the executive committee. Despite spending over $500,000 more than budgeted on events in 2025, the association is significantly scaling back its event funding.
Lobbying efforts are allocated $141,317 in the proposed budget, a slight increase from the $108,143 spent in 2025. Peer Support, which experienced a $24,038 deficit in 2025, is allocated $97,156. Grassroots Cafe’s revenue is projected at $300,000, a substantial increase from the $148,622 generated in 2025, though still below its planned revenue of $435,000.
Enrollment Decline and Financial Projections
The proposed budget takes into account an estimated 10.35% decrease in enrollment for the upcoming year. This projected decline in student numbers likely contributes to the need for cost-cutting measures and the utilization of reserve funds. Kaur emphasized that these measures are being taken to maintain financial stability while continuing to support core services.
What So for KSA Members
These budgetary changes signal a period of fiscal constraint for the KSA. Students can expect fewer large-scale events and potentially adjustments to service levels. The increased scrutiny of spending, particularly in areas like legal fees, suggests a commitment to greater financial accountability. The budget was approved with a two-thirds majority of the council, with six members in attendance.
FAQ
Q: What caused the KSA’s $2 million deficit in 2025?
A: The deficit was primarily due to overspending on wages and benefits, and significantly higher-than-budgeted legal fees.
Q: What is being done to address the deficit?
A: The KSA is implementing budget cuts, reallocating funds, and utilizing reserves from the 2026-2027 fiscal year.
Q: How will the budget changes affect students?
A: Students may see fewer events and potential adjustments to service levels.
Q: Where can students discover more information about the KSA budget?
A: Students can find financial reports at https://kusa.ca/financial-reports/.
Q: How can students participate in KSA council meetings?
A: Interested students can email [email protected] to join the meetings.
The next KSA council meeting is scheduled for Feb. 27 at 1:00 pm.
