SDU
SDU reduces rental and operating costs
SDU has a robust economy, but the University is also affected by the challenged global economy. The Rectorate takes the situation seriously and is therefore initiating a controlled slowdown of a number of costs.
Similar to the economy of businesses and households, SDU’s economy is impacted by developments in the national and global economy. A current forecast predicts an increased deficit in 2022.
- From the start of 2022, SDU budgeted with a planned deficit of DKK 79 million this year. I would like to emphasise that there is great uncertainty about this year’s result, but the deficit will likely be around DKK 130 million, says University Director Thomas Buchvald Vind on behalf of the Rectorate.
Reducing costs
The increased deficit is primarily due to a decrease in the return on SDU’s securities, which shows a decrease of DKK 36 million compared to the budget. In addition, there is a slight decrease in education revenue. Overall, SDU is affected by increasing prices and an uncertain supply situation. However, SDU is not currently affected by the rising electricity prices, as the University has a fixed-price agreement that expires at the end of 2023.
- Fortunately, SDU has a robust economy and savings to handle fluctuations in our income here and now. But make no mistake: The Rectorate takes the impact of price increases and reduced income on the University’s finances very seriously, says Thomas Buchvald Vind.
- To show due diligence, the Rectorate will now initiate a controlled slowdown of costs to alleviate pressure on SDU’s finances. The slowdown is initially aimed at reducing rental and operating costs, i.e. mainly electricity, water and heating.
- We do not know the full economic impact of the development of the world economy. By reducing some of our costs at this early stage, we can take the edge off the pressure on the University’s finances. At the same time, this will allow us time to follow national and global developments and make a more thorough assessment of the long-term impact on SDU’s finances, says Thomas Buchvald Vind.
The Rectorate will continue a series of investments to help readjust the University’s finances in years ahead, for example in relation to increased activity on external research projects.
The Rectorate will keep the organisation informed of further developments here on SDUnet.