University of Twente will have to sail sharply into the next few years to maintain its healthy financial position. The Spring Memorandum 2024-2028, which gives an outlook on the finances for the coming years, shows that revenues in this period will be less than previously expected. Although UT needs to be keen on its spending, the Executive Board is confident of making healthy and sustainable choices.
The coming years will still see growing income. For instance, projected revenues in the coming years will go up from 440 million euros in 2024 to 466 million euros in 2027. However, this is less than previously expected. The biggest fluctuation is the central government's contribution. It is expected to be €14 million (in 2024) to €19 million (in 2027) lower than previously thought.
Adjustment of expected student growth
The main reason for the lower expectation is an adjustment in the forecast of the number of students starting a bachelor's or master's degree at UT. UT does still expect to grow slightly in the coming years, from 12,600 students in 2023 to 13,600 in 2027. That is however 1,000 to 1,500 fewer than previously thought. This is partly due to regional demographics, with fewer students completing secondary education. Moreover, there is uncertainty about the influx of international students, as measures are being considered nationwide that may make it more unattractive for international students to study in the Netherlands (and Twente).
The financial consequences of this adjustment are substantial. For instance, the state contribution UT receives for education, which partly depends on the number of students, will be adjusted downwards by €5 million (2024) to €10 million (2027). Tuition fees will also be reduced by EUR 2.7 million annually due to lower intake.
Focus
The adjusted financial frameworks require some financial thinking. In the Spring Memorandum, the Executive Board indicated its intention to focus on tasks with a major societal impact.
For instance, education will be further future-proofed, with much attention to setting up a Lifelong Learning Programme. There is also a desire to further develop collaboration activities in various regions, such as Apeldoorn, Zwolle and with VU in Amsterdam.
The academic tasks focus on the areas of health, climate, safety and chip technology: areas in which UT is already successful and where there are opportunities to increase the university's impact.
UT also wants to make a firm commitment to sustainability, both in its own organisation and in its teaching and research tasks, and when investing in, for example, accommodation for education and research, to look even more closely at the necessity for the primary process.
Process
In the coming period, the faculties and service departments will start preparing the budget for 2024 on the basis of the Spring Memorandum. In doing so, caution is required and faculties and departments will take into account the changed financial reality as a result of the decrease in revenues described above. It should be noted that there will still be several factors that will become known later and affect the final size of UT's budget for the year 2024.
