New budget puts AU on course to realise Strategy 2030

“Our finances are solid, and our operating activities are balanced. And most importantly of all, there is financial capacity to advance the university’s strategic ambitions.”

This is how Chair of the AU Board Birgitte Nauntofte summed up the university’s financial situation after the Aarhus University Board approved the budget for 2026-2029, adding:

“There continues to be fundamental stability, and the university’s overall outlook is positive  – which is particularly important as we begin realising an ambitious strategy and an equally ambitious multi-year action plan.”

Revenue reaches a milestone
Aarhus University’s revenue has grown steadily in recent years, a trend which looks set to continue. The budget predicts that revenue will increase to an impressive DKK 9 billion in 2026.

An operating surplus of just over DKK 100 million is projected for both 2026 and 2027, in part due to the sale of Navitas. Operating deficits are anticipated in the subsequent budget years, due to extraordinary investments in campus development – but the university’s operations remain in balance.  

“As always, the farther ahead we look, the greater the uncertainty. Here I’m thinking of campus development in particular – prices can change over time – but of the Master’s reform and upcoming administrative cost reductions as well. But nonetheless, AU is in a position where we can permit ourselves to assume that there will be scope for strategic investments in this budget period. We find ourselves in this favourable situation because operating activities are in balance across the university and because the ministry has given us a boost in the form of increased basic funding and innovation funding in the coming years. And on behalf of the board, I’d like to acknowledge that,” Nauntofte said. 

A political breakthrough
New national political agreements have a major impact on AU’s financial forecast. Rector Brian Bech Nielsen is particularly pleased about the new multi-year agreement on the allocation of the national research reserve fund:

“We’ve been calling for an increase in basic funding and a new source of funding for innovation activities for a long time. The predictability this multi-year funding gives us puts us in a much better position in relation to planning and enhancing our academic activities, so this is a substantial boost for research and innovation. At the same time, significant funding has also been earmarked for strategic investments, for example in cybersecurity research and innovation, where we will be strong contenders, both nationally and internationally.”

Campus developments will pay off
The university’s total expenditure on rent is expected to peak next year and then decline for the remainder of the budget period. The projected increase is primarily due to the fact that Aarhus BSS anticipates a brief period with double rent in connection with the relocation to the University City. Throughout the budget period, rent will continue to account for 8-9 per cent of total revenue. University Director Kristian Thorn explained:

“Renovation projects, relocations and specialised installations involve extraordinary expenses that impact the budget – even with the partial offset from the Navitas sale. But we’re taking the long view. Because the university’s finances are sound,we can make investments while still maintaining the necessary balance. That allows us to focus on the enormous benefits our investment in our campuses will deliver. Students, staff and partners will all benefit from the improvements in our physical infrastructure for academic and social activities.”

According to Thorn, significant investments in AU’s campuses are also planned for the years after 2029. Major projects will include the continued development of AU Viborg, the relocation of Arts to the southern end of the University City and better facilities for Technical Sciences in Katrinebjerg.