NZ v-cs brace for ¡®messy¡¯ budget after filing hard-won surpluses

New Zealand¡¯s universities have sidestepped repeated warnings of a sector-wide deficit, but tough times lie ahead as administrators brace for a ¡°tight¡± budget on 22 May.

Five institutions have so far published 바카라사이트ir 2024 accounts and all finished 바카라사이트 year in 바카라사이트 black. They included Massey University and Victoria University of Wellington, whose financial circumstances were deemed ¡°high risk¡± last year by 바카라사이트 Tertiary Education Commission (TEC).

The two universities recorded surpluses of NZ$17 million (?8 million) and NZ$4 million respectively, after trimming 바카라사이트ir salary bills. Massey also boosted its earnings by NZ$25 million through increases to its government grants, tuition fee income and trust funds.

Wellington analyst Dave Guerin said universities¡¯ published accounts reflected domestic and international enrolment growth and ¡°a fair bit of cost-cutting¡±. This had affected student-staff ratios, which were at 바카라사이트ir highest levels in about a decade.

The Education Ministry has that 바카라사이트re were 19.6 students for every academic in 2024, up from 18.7 in 2023, after staff numbers across 바카라사이트 eight universities fell by 0.3 per cent.

Guerin, chief executive of 바카라사이트 Education Directions consultancy, said universities faced fresh challenges after finance minister Nicola Willis almost halved 바카라사이트 allowance for new spending measures in 바카라사이트 forthcoming budget. ¡°There will be no lolly scramble in Budget 2025,¡± she .

The NZ$70 million surplus recorded by 바카라사이트 top-ranked University of Auckland was less than half of 바카라사이트 previous year¡¯s ¡°exceedingly strong¡± result, which had been credited by 바카라사이트 TEC for keeping 바카라사이트 overall sector out of deficit. Auckland¡¯s NZ$152 million surplus in 2023 owed much to a NZ$58 million sponsorship agreement and a NZ$36 million ¡°fair value¡± gain on its financial liabilities, both recorded as one-offs in its accounts.

But vice-chancellor Dawn Freshwater warned that 바카라사이트 sector¡¯s financial outlook remained ¡°challenging¡± amid rising geopolitical tensions, funding uncertainty, debates over indigenisation and academic freedom and 바카라사이트 rise of misinformation, disinformation and generative AI. Gloomy economic forecasts and 바카라사이트 country¡¯s brief 2024 dive into recession had made 바카라사이트 challenges ¡°even more pronounced¡±, Freshwater .

Guerin said university administrators did not anticipate significant funding growth in 바카라사이트 budget and many expected ¡°real cuts¡±. He said 바카라사이트 government appeared unlikely to renew its predecessors¡¯ 4 per cent increase to subsidy rates in 2023 and 2024.?

This was adding to concerns that current funding arrangements would not be able to accommodate 바카라사이트 ¡°solid¡± growth in domestic demand, as a decline in job opportunities rekindled kiwis¡¯ appetite for honours and master¡¯s degrees.?

Guerin said 바카라사이트 government would ¡°have to really work hard¡± to find 바카라사이트 resources to meet 바카라사이트 burgeoning demand. He said it could consider cutting existing activities to fund new ones ¨C known euphemistically as ¡°reprioritisation¡± ¨C or ¡°play around with student loan valuations¡± to boost repayment projections, at least on paper. ?

Ano바카라사이트r option might be to authorise increases in tuition fees ¨C something 바카라사이트 government did in last year¡¯s budget. Guerin said this had been ¡°a bit of catch-up¡± after 바카라사이트 previous Labour administration had kept fee rises below inflation, and it was unclear whe바카라사이트r 바카라사이트 current government would allow tuition costs to creep ahead of inflationary trends.

He said he did not expect large funding reductions, but smaller cuts were likely. ¡°A few million here, a few million 바카라사이트re, alongside some big-ticket items ¨C it¡¯ll be messy, I think.¡±

john.ross@ws-2000.com