Centennial College to merge 2 campuses due to funding cuts, international student cap

Toronto's Centennial College says it plans to merge two of its five campuses due to "stagnant government funding and a decline in international student enrolments induced by federal policy changes."

In a statement on Wednesday, Centennial College president Craig Stephenson said the college will relocate all programs from its Story Arts Centre in East York to its Progress campus in Scarborough by the summer of 2026.

The college has not yet made a decision about the building that contains the Story Arts Centre, he said.

"The decision is part of a comprehensive strategy to secure the long-term sustainability of our academic programs and ensure the vitality of campus life," Stephenson said.

The "relocation" means students, faculty and staff will move as well. The Story Arts Centre is home to some of the college's school of communications, media, arts and design programs.

The college says it will ensure students, faculty and staff at the centre have the resources and support to manage the move with little disruption.

"This decision, while deeply upsetting and unsettling, is a critical step if we are to safeguard Centennial's long-term sustainability."

The announcement comes more than a month after the college said it is suspending 49 programs as it deals with the fallout of the federal government's cap on international study permits. The 49 programs represent a roughly 28 per cent reduction from its previous offering of 177 programs.

In the statement, Stephenson said the plan to move the programs and students is in its early stages and the school will develop a detailed transition plan.

"We deeply recognize the significance of the Story Arts Centre and its ties to the community. After analyzing a range of factors with careful evaluation, this decision has been approached with great care and respect for the deep connections that our students, faculty, alumni, and the broader creative community all have to this campus," he said.

Classrooms, labs not being well utilized, president says

In a letter to staff obtained by CBC Toronto, Stephenson said the decision was made by the executive team and the board of governors and relocation is about "strategic consolidation of space."

Stephenson said factors that influenced the decision include the "low utilization" of classrooms and labs, with only 40 per cent of the available space at Story Arts Centre currently in active use. That percentage is expected to drop even further once the college begins to suspend programs.

The college expects enrolment to drop 43 per cent overall and 53 per cent at the Story Arts Centre this year compared to 2022 to 2023, Stephenson said.

"Consolidation of staffing and students will not only ensure a higher level of energy and vitality, but expose Story Arts students to a greater range of services and engagement opportunities," he said in the letter. 

Stephenson said he understands the decision will have an emotional impact.

"For many, the Story Arts Centre represents much more than just walls and classrooms; it's been a home for creativity, a place of passion, and a symbol of opportunity for generations of students, faculty and alumni. Its influence on the arts community — both here in Toronto and beyond — is undeniable," he said.

Last September, the federal government announced it would slash the number of international student visas it issues by another 10 per cent. The new target for 2025 and 2026 will be 437,000 permits. In 2024, the target was 485,000 permits.

Deciding how to divide the allocation of permits among post-secondary institutions is up to the provincial government, which announced last March that colleges would face the biggest drop in their international student numbers. 

Advocacy group concerned about financial sustainability

Maureen Adamson, CEO of Colleges Ontario, said in an email on Wednesday that the advocacy organization is deeply concerned about the "financial sustainability" of colleges in Ontario.

"There is currently no end in sight for more difficult decisions like the one that Centennial College was forced to make today due to federal caps and chronic underfunding. College grads are the backbone of our economy and we need them now more than ever to protect Ontario," Adamson said.

Bianca Giacoboni, press secretary for Nolan Quinn, Ontario's Mnister of Colleges and Universities, said the province has invested heavily in colleges to stabilize them.

"Our postsecondary sector, including Centennial College, is going through a rebalancing right now and some difficult decisions are being made by our institutions to ensure their longevity," Giacoboni said. 

"We have been and will continue to work with the sector to ensure that they're able to keep providing Ontario students with the education and skills they need for good-paying, in-demand jobs and careers."