In its meeting of 11 December 2018, the Executive Board finalised the budget for 2019, including an update of the Accommodations Plan and the ICT Project portfolio.
The budget shows that the UvA is financially healthy and has sufficient funds (liquidity) for the coming years to carry out its plans. For the years 2019-2023, the UvA has budgeted for a break-even result; this includes scope for new policy investments from €1.5 to €4 million in the period 2020-2023.
In addition to the University-wide situation and the budgets for the faculties, services and other units, the 2019 budget also includes the updated 2019 Accommodations Plan and the ICT Project portfolio. In the budget, the principles laid out in the Framework Letter and the discussions of the draft budget are taken into account, and the development of key financial indicators is tested against the set standards.
The UvA’s income in 2019 is set to increase by €38 million compared to 2018. Of this, €31 million is from increased government funding. Owing to such factors as additional funds from the quality agreements and adjustments such as wage-price indexation, and the negative effect of the efficiency cuts, this is an increase of around 7%.
The increase in income makes an increase in the prices and budgets in the allocation model possible. In the budget, the prices and budgets have been increased by 3.5% compared to the Framework Letter and the prices on which the new allocation model was set. This will enable faculties to anticipate rising salaries and prices and provide, to a limited degree, extra financial leeway in general.
In 2019 (and beyond) considerable investments are planned for accommodation and facilities aimed at providing better support for students, lecturers and researchers. This budget also takes account of preliminary investments in ICT. A large extra investment in ICT at universities in the coming years is needed in order to maintain a leading international position in an age of digitisation.
The budget also gives more scope for all organisational units to make investments, for which the reserves can be used. This does not mean extra expenditure for structural (ongoing) costs, but extra scope for incidental projects and innovation incentives intended to have a structural impact. For faculties this means more scope for innovation and experimentation when regular funding is not available, and an opportunity to meet agreements made with researchers to use funds from past positive results which had been added to the reserves. For the service units, it means lower costs and more scope for investment in quality improvements that will pay for themselves over time.
The draft budget was made available online in mid-October (and the Framework Letter earlier) to read and comment on. Following agreement by the Joint Meeting of the Central Works Council and the Central Student council on 7 December, the budget was approved by the Supervisory Board on 21 December, thus concluding the budget process.