Chair of the AU board: Sound finances with room for ambitions

Solid, stable finances with moderate growth that can accommodate the university’s ambitions: in the words of Birgitte Nauntofte, chair of AU’s board, “this is an apt description of AU’s financial situation”. 

At the board’s final meeting on 5 December, the board approved the university’s budget for 2025 and reviewed the budget forecast for financial developments through 2027.

Nauntofte says: “We’re on secure financial footing. I was particularly struck by the university’s fiscal responsibility in correcting previous imbalances in terms of operations. I’d like to single that out. Ensuring that the university has the financial headroom to act strategically is a priority for the board. Aarhus University’s finances are now fundamentally sound, and the university can continue its positive, ambitious development.”

An important development in basic research funding
In 2025, AU will have new opportunities to bolster its research and core tasks. This is primarily thanks to the latest round of allocations from the research reserve: this time, the political parties have chosen to allocate part of the reserve to fund basic research. This means an additional allocation to AU amounting to DKK 93 million in 2025.

In Nauntofte’s words: “It’s extremely positive that our politicians are now signalling that they are aware of the problem posed by the structural pressure on basic research funding from increasing external grants. So it’s great news for non-targeted research in Denmark that we will be receiving more funding for this type of research at Aarhus University in 2025.”

Like the chair of AU’s board, Rector Brian Bech Nielsen also welcomes the increase in basic research funding in 2025:

“Basic research funding is crucial for the research performed at Danish universities. This increase will enable the university to provide better support for important research while also co-financing an increasing volume of external funding. I very much hope that the increase will be made permanent from 2026. Taking the long view is inherent to research, which means the financial framework for our activities must be long-term as well.”

Focus on campus development
Aarhus University’s fiscal forecast for the next few years includes major investments and one-off expenses. One of these investments is the continued development of the university’s campuses, which is entering a new phase: Campus 3.0.

“In 2025, we’ll inaugurate new facilities at the southern end of the University City, expand our facilities in Katrinebjerg and relocate multiple administrative units in order to ensure more accessible service and make optimal use of vacant facilities in the University Park. We will also be investing in the development of our other campuses. Herning is getting a new roof, we will continue developing AU Viborg and we will consolidate campus facilities in Emdrup. There will be a number of one-off expenses associated with redevelopment and relocations,” University Director Kristian Thorn explains.

These expenses are accounted for in the budget, he adds: “Investments in the university’s campus development have been included in the budget forecasts through 2027. This will enable the university to consolidate its research and teaching activities and foster a vibrant learning environment.”

The first fiscal effects of the Master’s reform
Aarhus University forecasts continued growth in external research funding over the multi-year fiscal period. However, a decline in student places and enrolments is expected, as a consequence of political reforms.

The Master’s reform is not yet finalised, and negotiations are ongoing. The parties to the agreement still need to reach agreement on the new Master’s degree programme models to be introduced. However, the introduction of these new models will not start affecting the budget until after 2028 in any case. On the other hand, the sector resizing aspect of the reform has been finalised. As a consequence, the faculties have incorporated the decrease in student FTE funding into their budgets for the coming fiscal years.

Thorn says: “The reduction in admissions to Bachelor’s degree programmes will come into effect with 2025 summer admissions, and the faculties have meticulously incorporated these changes in their budgets for the coming years. Fortunately, the full reduction in student places will be phased in over several years, and we are seeing growth in other sources of revenue. This means we will be able to avoid an abrupt downturns in our finances, and we will be able to maintain the structural balances we have achieved.”