A budget summary to yesterday’s university council meeting detailed the 2026 financial outlook, noting an expected $9m deficit was an improvement on its 2025 budget deficit of $15.5m.
Acting vice-chancellor Prof Jessica Palmer told the Otago Daily Times the university was on track to return a small surplus in 2027.
It had been working to reduce its deficit and return to surplus since 2023 and, to date, had saved "close to $45m".
"The staged approach to returning to surplus is deliberate to ensure we can continue to deliver high quality teaching, research and student support," Prof Palmer said.
The budget reflected the challenging financial and economic environment universities nationwide were operating in, while broader structural funding issues remained a significant concern.
Domestic and international fees are budgeted to increase by 6% and 5% respectively.
The university was forecast to finish 2025 with a $11.8m deficit, rather than the $15.5m budgeted — "continuing our steady path towards surplus".
Its strategic plan to 2030, Pae Tata, covered several proposals to reduce the deficit, such as increasing student numbers.
The budget summary said these were expected to grow by 690 to 19,768 equivalent full-time students in 2026 — the school leaver cohort was larger than previous years, although domestic competition remained "intense".
Work to review and, where appropriate, consolidate papers was ongoing and was planned to reduce duplication and better align papers with industry trends.
"There is no specific goal to cut a certain amount of papers," Prof Palmer said.
Space-saving work among divisions continued; it might include collaborative or flexible use of some laboratories and improved timetabling, she said.
"Fifty-five staff members have just moved out of space we lease in Hanover St to move into a university-owned property, providing significant savings annually from 2026 onwards."
The 2025 budget was released to the ODT in August.
Prof Palmer said the public summary of the 2026 budget was published after a change to the university’s financial reporting.
"Otago is the only university in New Zealand which provides such a document."
She said all university staff had been fully informed of the 2025 and 2026 budgets.
