Universities express deep concern over funding situation

Universities in New Zealand are warning of catastrophic consequences if the government does not renew a one-off funding boost made by its predecessor, writes John Gerritsen for RNZ.

The sector is in the middle of another difficult year, with half of the eight institutions expecting to lose millions of dollars. Universities New Zealand Chief Executive Chris Whelan told RNZ the situation would get even worse if next year’s budget did not confirm an extra 4% increase to subsidies for enrolments at degree-level and above, for 2024 and 2025 only. The increase was on top of a 5% increase to subsidy rates in 2024 and was worth about NZ$128 million (US$77 million). This year’s government budget increased 2025 subsidy rates 2.5%.

“There’s a deep concern that that funding runs out in December next year; it would be effectively a drop on funding for the sector of about 8% at that stage and that would be catastrophic,” Whelan said. “From talking with the chief financial officers of the universities, it’s their single, number-one concern.”
Full report on the Otago Daily Times site