First Nations University of Canada has its main campus in Regina and satellite campuses in Saskatoon and Prince Albert. (CBC)

A delegation from First Nations University of Canada has been told Ottawa won't restore $7 million in annual funding to the struggling Saskatchewan-based institution.

That was the word Thursday after a member of the faculty, a student and Federation of Saskatchewan Indian Nations chief Guy Lonechild met with federal Indian Affairs Minister Chuck Strahl in Ottawa.

Last month, Strahl said he had waited long enough for the university to reform itself and would halt funding after the end of the fiscal year on March 31.

The university delegation tried to get him to change his mind in a meeting on Thursday morning, citing changes that have been made in how the school is run, but they were not successful.

"We have heard a no," Lonechild said.

Strahl confirmed that later with reporters, saying the changes and proposed changes are worthwhile, but simply too late.

"Of course, they're saying that now, for sure, change is coming but frankly we're just not going to continue in this current funding arrangement," Strahl said.

Strahl noted that Ottawa's cut followed a similar decision by the Saskatchewan government to cut $5 million in annual grants.

Both governments said there were problems with governance at First Nations University — in particular, a longstanding concern that there were too many chiefs and other politicians on an oversized board of governors.

There have also been reports in recent weeks about alleged misspending at the university. In recent years, the school has been wracked by various controversies, including the departures of numerous senior staff, budget deficits and allegations that academic freedom was being threatened.

In response to FNUC losing half its funding, the FSIN — which controls the university — dissolved the board of governors and appointed a new board with fewer members.

Hoped that would be enough

This week, Saskatchewan chiefs also agreed to a plan to share management of the institution with the University of Regina, which has its main campus close to the FNUC main campus.

Under that proposal, the U of R would control the FNUC's finances, but FNUC would remain an independent academic institution.

Lonechild and the group from the university hoped that would be enough to convince Strahl to change his mind.

Expressing disappointment, student leader Diane Adams said she doesn't know what's going to happen now to FNUC and its 800 students (another 1,200 from the U of R take classes at FNUC).

Some of those students may not feel comfortable in a non-First Nations university and could end up leaving post-secondary education altogether, she said.

"Our future is very uncertain," she said.

If the money isn't restored, the university will soon have to give notice to its professors, said James Turk, the executive director of the Canadian Association of University Teachers, who was also at the meeting urging Strahl to relent.

The group wants to meet with Saskatchewan Premier Brad Wall and Prime Minister Stephen Harper about the cuts, Turk said.

"We're going to do anything possible to get it reversed," he said.

Strahl said he thought it would be a good idea for him to discuss things with the Saskatchewan minister who's in charge of the FNUC file, Advanced Education Minister Rob Norris.