Good afternoon, Chair Easter and members of the finance committee.
As Fanshawe's president, I am pleased to have the opportunity to speak on behalf of our 43,000 students and on the critical role that colleges play in preparing people for jobs.
COVID-19 has reinforced the significance of colleges within our communities and as stimulators of the economy across our country. Colleges and Institutes Canada, as well as Polytechnics Canada, have emphasized this, and we are proud members of both organizations.
What is important to remember is that colleges are agile. We quickly transformed our manufacturing and research capacities to produce PPE and to assist with research. We will be able to pivot just as swiftly in the recovery period. Colleges offer industries turnkey solutions for industry needs, providing creative solutions and developing programming in order to have the talent pipeline meet workforce demands.
I need to emphasize that COVID-19 has had a serious financial impact on Fanshawe. We anticipate a tuition and ancillary fee revenue loss of $54 million. In addition, we expect supplementary COVID-related expenses of $2 million to equip the workforce with remote accessibility and to prepare for a safe learning environment. This year's fiscal projected loss of $56 million, which represents 15% of our overall annual budget, is being mitigated by significant expense reductions and a hiring freeze.
Our priority remains safeguarding our students, faculty and staff, and giving our learners the best experience possible in creating a pathway for their success. We believe the government can play an important role as we look to the other side of COVID.
For a number of years, the Government of Canada's innovation and skills plan has been important in helping Canadian businesses grow, scale up, innovate and export, while creating quality jobs and wealth for Canadians.
As noted, in February Fanshawe embarked on a $58-million investment to create “Innovation Village”. Funding has been secured from the City of London, and we hope for similar support from the province and the federal government. Innovation Village is a physical and virtual hub that brings business, industry and the not-for-profit sector to the front door of Fanshawe, fostering student experiential learning, business growth, scale-up and innovation to support wealth generation and job growth within the region. The total annual projected impact by 2030 will be $64 million, generating $137 million each year in increased economic spinoff.
This leads to my final point this afternoon, the importance of the two upper levels of government engaging with municipalities, colleges, universities and other public sector organizations to drive the economy through infrastructure investments.
Several years ago, the federal government rolled out the strategic infrastructure fund. The application process was efficient and the decisions on the awards were announced quickly. It was one of the most effective tools we have seen to support the building of communities through strategic partnerships. Fanshawe took advantage of SIF and created the centre for applied research and innovation in biotechnology, or CARIB. CARIB advances biotechnology, chemistry and environmental technology programs through research and innovation with industry collaborations and partnerships. In one current example, industry and our CARIB researchers are conducting cutting-edge research that may translate into effective treatment for COVID-19. Testing is currently under way and the preliminary results are showing promise.
Fanshawe research is also working on additional studies, including the ability to manufacture potential therapeutics on a large scale and examining cannabis extract therapies that have the potential to treat blood clots and inflammation that occur in life-threatening COVID-19 cases. The work being done in applied research at Fanshawe is very responsive to Canada's immediate needs. The collective knowledge and advanced facilities within our institution allow our team to address emerging challenges. SIF supported the development of modern labs, which, together with the wisdom and devotion of faculty and staff, allow us to produce tangible results that are critical in today's world.
Similarly, a new infrastructure program supported by the federal and provincial governments will allow Fanshawe to continue doing the work that has lasting and profound results.
An investment in Canada's post-secondary infrastructure also ensures training can occur in an environment that responds to physical distancing and other safety protocols while supporting green retrofits. Fanshawe has two shovel-ready projects ready to go as soon as the program is announced.
Thank you again for providing time for Fanshawe. We are part of your post-recovery solution and look forward to working with you.