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The board approves the budget

On 18 December the AU Board approved the university's budget for the next three years. Without a doubt, this is the toughest budget Aarhus University has adopted in recent times, says Chairman of the Board Michael Christiansen.

2013.12.19 | Anders Correll

Chairman of the Board Michael Christiansen and Rector Brian Bech Nielsen. Archive photo: Lars Kruse / AU Communication

On 18 December the AU Board approved the university's budget for the next three years. The 2013 budget is DKK 6.443 billion with a budgeted deficit of DKK 81 million. The 2014 budget includes a DKK 60 million deficit. The budget must balance starting in 2015. To achieve these budgetary targets, Aarhus University must make budget cuts that will make it necessary to reduce the size of its staff. The university must achieve permanent reductions in annual expenditure of approximately DKK 225 million starting in 2016.

Nine Board members voted in favour of the budget plan, while the two student representatives refused to adopt the budget on the grounds that the plan did not adequately describe how the so-called financial room for manoeuvre for new initiatives is to created.

“Without a doubt, this is the toughest budget Aarhus University has adopted in recent times. Though I had hoped that we would pass the budget unanimously, I respect the students’ decision. However, I am pleased that the students agreed on the necessity of restoring budgetary balance after 2015,” says Chairman Michael Christiansen, who is also pleased that the rector and the rest of the senior management team will now continue the budget process in dialogue with the university’s staff with the support of the Board.

At the meeting, the Board approved the senior management team’s plan to draw on funds from the so-called financial room for manoeuvre for new investments in education and to fund measures to mitigate the impact of the budget cuts on staff, including voluntary redundancy packages.

The rector is also was pleased that the budget is now in place, because this means that the difficult discussions on the coming budget cuts at Aarhus University can move forward.

“The scenario we’re facing is definitely not a desirable one - either for staff or management. Now that the budget has been adopted, we can begin concrete discussions on how we will find the budget cuts. We have decided to earmark additional funds to meet the desire for reasonable redundancy packages,” says Rector Brian Bech Nielsen, who also emphasises that the budget earmarks extra funds to initiatives such as providing teaching staff with additional pedagogical training.

Read more about the budget

Budgeted net cost reductions 2014-2016 Accumulated, DKK mill.

Area

2014

2015

2016

AR

16.8

25.3

25.3

ST

43.7

65.5

65.5

HE

21.1

31.6

31.6

BSS

18.4

27.6

27.6

The central administration

25.0

50.0

75.0

Total

125.0

200.0

225.0

The university must achieve permanent reductions in annual expenditure of approximately DKK 225 million starting in 2016.  Note that the reductions in question are net reductions.

Policy and strategy, Technical / administrative staff, All AU units, Students, Academic staff