Multi-year perspective and continuity section

Within the sector, it was agreed to budget less cautiously, which resulted in a negative budget. The Minister of Education, Culture, and Science urged that deficits be budgeted, cash and cash equivalents be reduced, and solvency be lowered. Radboud University complied with this request by responsibly budgeting and projecting a temporary financial deficit in the coming years. A positive operating balance is expected again in 2026.

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 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. Finally, the university is preparing for a major improvement in its real estate portfolio (the campus plan). Based on our strategy, the university has committed itself to several (social) objectives. These include 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 shortage of teachers.

The budgeted result for 2022 is €18.1 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. The university is also investing in research facilities, such as the Event Horizon Telescope and the maintenance of HFML Felix, partly due to which the university expects an increase in indirect government funding and contract funding. With regard to contract teaching, the university expects a similar offer as in 2021. A structurally higher expenditure level is also planned for privacy and ICT security. An example of this is the Centre for Privacy and Data Governance (iHUB). Since some budgeted vacancies were not (immediately) filled in 2021, the 2022 budget also takes into account the delayed filling of vacancies.

Negative results have also been forecast for 2023–2025, returning to a small positive result in 2026. Larger multi-year deficits have been estimated for IT operations, property operations and the HFML-FELIX research facilities.

In the table below, the FTE development in the years 2020–2026 is set against the number of students. Student numbers will initially increase slightly and are expected to remain constant from 2024 onwards, in line with the strategy. The university strives primarily for quality rather than quantity. Due to the extra investment in staff in the next few years to continue to offer quality and 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 employees is expected to increase by 203 in 2022 compared to 2021. This is related, among other things, to the extra staffing investments from the additional structural resources (reference estimate 2021) and should lead to a better balance between education and research and a reduction in overall workload. Given the scarcity in the current job market, it is extremely challenging to retain staff and fill open vacancies on time. The number of FTEs is expected to decrease as of 2023. This is largely due to FTE developments in the Faculty of Medical Sciences and the Faculty of Science.

The projected balance of cash and cash equivalents at the end of 2021 in the 2022 budget was €62.3 million. The realisation at the end of 2021 shows that the final position was €75.6 million, €13.3 million higher than forecast. As a result of investments of €35.5 million, a decrease of €31.1 million was budgeted in the 2022 budget (from €62.3 to €31.2 million). Due to the higher starting position in 2022 and adjustments to the investment level as a result of the campus plan, cash and cash equivalents will probably be higher than currently budgeted.

The development of tangible fixed assets is based on the multi-year investment projection (MIP) of April 2021, which did not include the campus plan. The campus plan, which is expected to be finalised in 2022 and which details the vision for the campus over the next ten years, has been partially included in this budget and the multi-year estimate. The MIP of €235 million includes €112 million worth of projects for which decisions have been made (including energy-saving measures), and €123 million worth of projects for which decisions still need to be made (including Humanities accommodation). Pending a final decision on these investment and maintenance expenditures, a negative liquidity balance is expected as of 2023, which will necessitate the acquisition of loan capital. An investment of approximately €35 million was estimated in 2022, of which €27 million is for buildings and approximately €8 million is for equipment and inventory.

In the period from 2020–2026, provisions will decrease by approximately €6 million. This mainly relates to the senior staff scheme, which is being phased out (minus €1.7 million), the demolition and asbestos removal (minus €4.7 million) as a result of carrying out the planned work, and other provisions.

A detailed overview up to and including 2026 is as follows: