The Board of Governors approved a financing strategy that supports up to $250 million in new financing to advance critical capital and systems priorities. The proposal has also moved through the provincial approval process. Through this process, the university would self-finance capital projects by seeking up to $250 million in the form of a bond from third-party lenders and not require capital funding from the Government of Saskatchewan.

USask faces significant capital and system renewal needs that cannot be funded through existing operating resources. Key drivers include limited unrestricted cash reserves, inflationary pressures, aging infrastructure and systems, and the need to invest in new revenue-generating opportunities.

USask has a demonstrated track record of using debt financing to support strategic capital investments. In 2019, the university issued an $85-million bond to fund major renewal and modernization projects across four key academic facilities: Murray Library, W.P. Thompson Building, Arts & Science Building, and Thorvaldson Building. Previous to that, USask leveraged borrowing to successfully deliver other significant infrastructure projects, including student residences and the Stadium Parkade, reflecting its experience in responsibly financing long-term capital priorities.

The financing would support:

• Integrated Services Renewal (ISR)
• Engineering expansion projects (IDEAS)
• Edwards School of Business expansion
• Strategic revenue-generation investments, including expansion of nuclear medicine capabilities
• A sinking fund to support future repayment obligations

The largest investment is the Integrated Services Renewal (ISR) project, which would require approximately $120 million, representing about half of the planned financing. The project modernizes core systems supporting students, finance, human resources and university operations.

Operating grants, tuition, and fee revenues are not keeping pace with inflation and ongoing operating pressures. While operating resources support our day-to-day activities, they are not sufficient to fund the large-scale investments required to renew aging systems, modernize infrastructure, expand learning spaces and create new opportunities for growth.

The university's unrestricted cash reserves are insufficient to fund these major one-time capital investments while maintaining ongoing operations.

No. The strategy outlines that USask maintains a balanced-budget approach and has projected structurally balanced operations. The financing is intended to support long-term capital and strategic investments, not to address operating deficits.

After rigorous analysis, we have determined that the financing is affordable. The strategy includes 10-year projections, peer benchmarking, debt-policy analysis, and multiple stress tests. Annual financing costs have been incorporated into long-term financial planning.

USask has a demonstrated track record of using debt financing to support strategic capital investments. In 2019, the university issued an $85-million bond to fund major renewal and modernization projects across four key academic facilities: Murray Library, W.P. Thompson Building, Arts & Science Building, and Thorvaldson Building. Previous to that, USask leveraged borrowing to successfully deliver other significant infrastructure projects, including student residences and the Stadium Parkade, reflecting its experience in responsibly financing long-term capital priorities.

Our research indicates that even with an additional $250 million in financing, USask's external debt would remain well below the average debt levels of U15 research-intensive universities with third-party financing.

The university would face delays or pauses to critical projects, including ISR. Risks identified include increased pressure from aging systems, delayed infrastructure expansion, and the potential loss of strategic opportunities such as the expansion of nuclear medicine capabilities.

The financing strategy does not propose tuition increases to fund these projects. The report focuses on financing capital priorities through long-term debt financing supported by the university's overall financial capacity.

The financing strategy is not a workforce reduction initiative. As is always the case, we responsibly plan for continued financial management, balanced-budgeting, and ongoing efforts to improve revenues and manage expenses.

The investments are intended to:

• Improve student-facing systems and services
• Modernize administrative and payroll systems
• Expand learning and teaching spaces
• Support research and innovation opportunities
• Create capacity for future growth

The timing is important because planning and implementation are already underway for several priorities. Delays could increase costs, extend project timelines, and increase operational risks. 

The Be What the World Needs Campaign for USask spanned 10 years, from 2015 to 2025, and funds raised have already been put to work supporting thousands of people and projects. Funds raised during the campaign were donor-restricted to mission‑aligned projects during that period and cannot be redirected to the capital priorities the new financing will support.

This financing is an investment in USask's future. It allows the university to address critical infrastructure and systems needs, support student success and research excellence, pursue strategic growth opportunities, and do so within a financially responsible framework that has been rigorously assessed for affordability and sustainability.