LONDON, Ont. - The University of Western Ontario is considering early retirements, job cuts and tuition hikes to cope with a $41 million drop in revenue by 2011.

Budget recommendations will be considered by the university senate late this month and the school budget will be set in April.

The downturn in stock markets has pummelled investments which the university relies on for its endowments.

As of Dec. 31, the university says the value of its endowments was $11.1 million less than the originally donated amounts.

Western hopes to receive some grants in the upcoming provincial budget and will further expand graduate enrolment to attract funding.

Across town in London, Ont., Fanshawe College faces a budget shortfall of $6.5 million, a situation that may also trigger layoffs.