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.
Daily Telegraph New Zealand (DTNZ) is an independent news website, first published in October 2021. - where this article was sourced.
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.
Daily Telegraph New Zealand (DTNZ) is an independent news website, first published in October 2021. - where this article was sourced.
2 comments:
Nowhere is there a better illustration of " Go WOKE go broke". Why should the taxpayer once again have to bail out organisations who are victims of their own stupidity.
A good case to be made to outsource all of NZ's tertiary education to Australia, where many of the best and brightest already are going to study, leaving NZ universities populated by relative dunces while staffed by hush-hush diversity hires.
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