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Financial risks loom over universities

Tertiary education news
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A Tertiary Education Commission (TEC) briefing paper reveals that New Zealand universities’ financial situations are more precarious than they appear, with two universities classified as high risk and the sector’s forecasted surpluses under scrutiny.

The report, released to state media under the Official Information Act, highlights that the $138 million surplus reported in 2023 was largely driven by one-off gains, masking an underlying $66 million deficit. It also warns of potential long-term risks due to declining enrolments, deferred capital spending, and rising operational costs, particularly for Massey and Victoria Universities. These institutions, along with Otago, Lincoln, and Waikato, face challenges that could impact their ability to maintain facilities and meet student needs.

The briefing also casts doubt on the sector’s optimistic financial forecasts for the coming years, pointing out that universities’ expenses are expected to outpace income, with some already operating at a deficit.

The report highlights the need for urgent action to address these financial issues, as deferred maintenance and capital projects risk making some facilities unusable or non-compliant. University leaders, however, remain confident, with Massey and Victoria University vice-chancellors telling state media that their institutions are on track to achieving financial sustainability, despite the TEC’s warnings.

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8 COMMENTS

  1. Well with Grant Robertson now holding the purse strings for Otago, expect ruination in short order. Of course if Labour gets voted back in next term money will be splashed like confetti but then the country will be complete Toast in that event.

  2. Nothing of worth gets funded by globalist governments. They are too busy spending money doing their foreign masters bidding.

  3. As we see the politicians these universities produced, I’d recommend people invest elsewhere.🤔
    The outcome isn’t impressive.

  4. Former Labour Finance Minister Grant Robertson appointed vice-chancellor role at University of Otago
    The role commands an annual salary of $629,000 – $544,843 after accounting for KiwiSaver and the rental of University Lodge in St Leonards, where Robertson will stay with his partner, Alf.
    As an MP he was paid $163,961.
    Not a bad screw wouldn’t You say?
    No wonder they’re all going broke

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