Laurentian University built through the 2010s, went insolvent, and cut 69 programs

In April 2022 Ontario's auditor general, Bonnie Lysyk, released a preliminary report on Laurentian University in Sudbury. She said capital expansions from 2010 to 2020, together with 'poor management of its financial affairs', were big factors in its insolvency. The university had begun a building spree in 2010, and 'there wasn't the revenue coming in to support the payment down of the principal and interest', she told CBC. Senior administration costs grew 75% over the decade, peaking at more than $4M a year in 2018, and some senior salaries exceeded legislated limits.

Laurentian announced insolvency in February 2021 and restructured under the Companies' Creditors Arrangement Act (CCAA), which had never before been applied to a public university. The auditor general called that choice a mistake. She said the university refused to seek financial help from the province early, raised the CCAA with the minister in August 2020 without saying how much help it needed, and made an explicit funding request only in December 2020, when the ask was large and time short.

On 12 April 2021 Laurentian cut 69 programs, affecting about 932 students, and fired 195 staff and faculty with little notice and severance. Legal and consultant fees tied to the insolvency exceeded $24M by March 2022. The report said there was no intentional wrongdoing and the expansion plans were well meant, but the board of governors failed to provide proper oversight.

69 programs cut affecting about 932 students, 195 staff and faculty fired, and more than $24M in insolvency fees as of 3 March 2022.

A decade-long building spree from 2010 was not matched by revenue to cover principal and interest.

The board of governors failed to provide proper oversight, according to the auditor general.

Senior administration costs rose 75% in 2010–2020 and were larger than at comparable Ontario universities.

Laurentian chose the CCAA and delayed a clear funding request to the province until December 2020, leaving little time.

Debt-funded expansion without revenue to repay it, plus a late and vague ask for help, leaves only drastic options.

The report was a preliminary perspective submitted to the Ontario Legislature. It also said the Ministry of Colleges and Universities did not intervene in time. It noted that Nipissing University, which had trouble in 2014, sought ministry funding early.