It’s the first time in years that the fourteen universities jointly make such a big loss, says EY in its annual Education Barometer. And the new government’s cutbacks aren’t even here yet.
Increased costs
Based on the 2023 annual reports and the accompanying financial forecasts, the agency concludes that institutions are smashing their piggy banks en masse. Last year, they made a loss of 100 million euros. This year, it will probably be 250 million. This is mainly caused by increased personnel and housing costs.
In all fairness, the piggy banks were bursting at their seams a little bit. Over the years, the universities have built up over four billion euros worth of equity. That buffer grew considerably during the COVID years. Due to the tight labour market, it’s not possible to fill all vacancies, which means money is left on the shelf.
Danger zone
EY thinks those joint reserves will decrease to 3.6 billion euros in the years ahead. Although this is still a huge amount, there are major differences between the institutions. Three to five institutions need to be careful not to end up in the danger zone in 2026, says EY. The accounting agency doesn’t mention any names.
The elephant in the room is the new government policy. The report doesn’t yet take into account the impending cutbacks in higher education and scientific research. As early as next year, the minister of education wants to transfer 175 million less to universities due to the starter and incentive grant cuts.
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