Despite many higher education establishments grappling with deficits, Trinity College Dublin (TCD) registered a surplus nearing €4 million in the past year. Despite this, the institution warns of a heightened burden from escalating costs and under-compensated public sector wage rises. Although TCD’s yearly results are yet to be made public, its board has accepted a financial statement showing the €3.9m surplus.
TCD had foreseen a deficit in its submission to the Higher Education Authority (HEA) in the previous year. However, Provost Dr Linda Doyle declared that TCD managed to account for a surplus in 2022/23 owing to prudent cost control, augmented revenue and average energy prices that happened to be lower than initially predicted.
Nevertheless, Dr Doyle accentuated the relentless strain on the higher education sector due to inflating costs. She acknowledged the essential nature of public service pay agreements that require funding from the institution’s already stretched budgets unless they receive subsequent support like the previous year.
Dr Doyle emphasised the necessity for the government to fulfil its commitment of supplying annual base funding of €307 million for the higher education sector, a promise made by then higher education minister, now Taoiseach, Simon Harris. She argues that this would allow Irish Universities to enhance crucial services for students and staff, aligning them with international counterparts.
Compared to the preceding year when TCD faced a net deficit of €200,000, the surplus in 2022/23 presents a stark contrast. Yet, collectively, universities are anticipated to face combined deficits approximating €15 million this year, as some struggle to navigate rising costs. Approximately eight publicly funded higher education establishments were expected to be in deficit last year as per financial projections supplied to the HEA.
The most significant financial concerns revolve around TU Dublin, University College Cork (UCC), and the University of Limerick (UL), which are all under HEA investigation after recent financial matters raised alarms. The institutions claim that they are experiencing cost pressures because of multiple factors like soaring costs, public sector wage rises, deferred Covid-19 related expenditure and an increasing workforce due to growing enrolments.
The Government insists that they have allocated enough finances to the higher education sector, however, universities contend that there exists a disparity ranging from €25 to €30 million between the State funding they have received and the actual cost of public sector salary increments.
Universities operating under deficits have assured that they have adequate cash reserves to settle their debts completely by the end of the current year.
The HEA has significant concerns about financial performance pertaining to “unplanned” deficits, instances when universities unexpectedly find themselves in a financial shortfall.
A case in point is the UCC, who faced an unexpected deficit of €11.2 million last year due to escalating costs. In response, the university has rolled out a cost-containment strategy aimed at limiting this year’s deficit to €16 million, with plans to bounce back with a surplus of €2 million in the upcoming year.