Multi-year Perspective and Continuity

Within the sector, it was agreed to budget less cautiously. A temporary negative budget is permissible in that case. The Minister of Education, Culture, and Science previously urged that deficits be budgeted, cash and cash equivalents be reduced, and solvency be lowered. Radboud University has complied with this request by responsibly budgeting and projecting a temporary financial deficit in the coming years. In 2025, a positive operating balance is expected again.

In the coming years, investments will be made in the quality of education and research by recruiting additional staff, partly to reduce the perceived workload and to increase the well-being of both staff members and students. In addition, investments will be made in various IT projects in the coming years, such as strengthening the organisation around privacy and information security, and implementing a new roster application and ERP system.

Finally, the university has committed itself to several (social) objectives based on our strategy, but we have not yet found structural funding for them. This includes funding for the unique research facilities at the FELIX Laboratory (‘laser lab’) and the High Field Magnet Laboratory (HFML, ‘magnet lab’), as well as the establishment and provision of a broad range of teacher training programmes to reduce the teacher shortage.

The budgeted result for 2021 is €11.6 million negative. With this, the university invests in the quality of education and research by increasing the number of (academic) staff, partly to facilitate education in smaller groups and to reduce the workload. In addition, the university invests in privacy and IT security. Following the hack at Maastricht University just before Christmas 2019, we carried out several internal and external investigations in 2020 to bring IT security to a higher level. As a result, a structurally higher expenditure level is anticipated at Corporate Information Systems for privacy and ICT security. Expenditures are also planned in 2021 for the roll-out of Office 365 and User-Focused Online (new content management system for streamlining internet and intranet pages). In addition, further investments will be made in 2021 for the implementation of a more centrally controlled timetabling software system. Finally, there are the consequences of the coronavirus crisis, such as the deficit at Radboud Services due to the closure of the sports centre and catering facilities.

The faculties were allocated additional resources of €17.7 million in 2020, mainly to expand the academic staff, to increase the quality of research and education, and to reduce the workload. However, not all vacancies will have been filled (by far) in 2020. It is estimated that this will happen in 2021.

Negative results have also been forecast for 2022–2024, returning to a small positive result in 2025. Larger multi-year deficits have been estimated for Computing and Information Sciences (CIS), Real Estate and the Faculty of Science (especially the HFML-FELIX research facilities).

Direct government funding includes positive reference estimates, some of which have not yet been spent. The funds have been set aside centrally as expenses and have therefore been accounted for as result neutral.

In the table below, the FTE development in the years 2019–2025 is set against the number of students. Student numbers are expected to remain constant, in line with the strategy. The university strives for quality rather than quantity. Due to the extra investment in staff in the next few years to continue to offer quality and to reduce the workload, we see a favourable development in the ratio of academic staff to the number of students. This will facilitate teaching in smaller groups and intensify student guidance. The number of FTEs will decrease again slightly in 2025. This is partly related to the expiration of funding for HFML-FELIX.

The development of tangible fixed assets up to and including 2025 is based on an indicative update of the 2017 Long-term Investment Prognosis (MIP). The implementation of the campus strategy in the campus plan has been delayed by COVID-19 and will be completed in 2021. An update of the MIP was used for the 2021 budget, in which the following projects were identified.

Of the approximately €155 million total investment and maintenance expenditures for the period from 2021–2025, final decisions have been taken about approximately €43 million. For the approximately €112 million remaining, concrete elaboration and decision-making is still open (in a new MIP). This will be completed shortly. With the explicit reservation of decision-making on these investment and maintenance expenditures, it is anticipated that negative liquidity balances will arise from 2021 onwards and that loan capital will be required for financing. 

In the period from 2019–2025, provisions will decrease by more than €11 million. This mainly relates to the senior staff scheme, which is being phased out (minus €2.1 million), the demolition and asbestos removal (minus €7.2 million) as a result of carrying out the planned work, and other provisions (minus €1.8 million).

A detailed overview up to and including 2025 is as follows: