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– The fact that the results are better than we feared at the start of the year and exceed the budget is entirely due to the excellent work done on the collective part of university staff. However, despite things moving in the right direction, everyone needs to continue contributing and focusing on cost-efficiency and maintaining high student numbers. We still find ourselves in a challenging situation and work remains to achieve long-term financial balance, says Katarina Hedlund Johansson, University Director.
Reduced travel and conference costs have contributed to the improved results, and the delayed move to the new Campus Borlänge has also resulted in savings despite this presenting a challenge for the organisation. As for student numbers, we are almost at target levels, which is very positive. However, personnel costs are unfortunately higher than expected, which is partly a consequence of the ongoing workforce reduction process that began in autumn 2023. Parallel to this, an additional workforce reduction process is underway in the School of Teacher Education, where reassignment assessments are underway.
The introduction of the Policy för kontorsarbetsplatser (Office Workplace Policy) for Campus Borlänge has been a key part of reducing facility costs, and both the policy and its effects will be evaluated. There will also be a review of how to consolidate space in Falun, and a detailed work plan will be drawn up.
Policy för kontorsarbetsplatser (Office Workplace Policy) (pdf)
Reduced Government Funding
The government's budget proposal for 2025 will mean that the University will see a reduction in government funding starting next year, with further cuts in the years to follow. Compared with 2024, funding will have decreased by more than 20 million SEK by 2027.
– It is now clear that a significant number of higher education institutions in Sweden, among them Dalarna University, will face a reduced funding cap in the coming years. This means that the direction set by the University Governing Board focusing on consolidation and prioritisation of programmes is highly relevant. We must continue reviewing how to run our operations and which programmes to invest in and which we may need to phase out, says Vice-Chancellor Jörgen Elbe.
Decision on Cost-saving Measures 2025-2027
To achieve the long-term goal of a balanced budget, where the University's capital will be restored to around 10% of turnover by 2027, several long-term measures must be implemented. These measures will involve development, phasing out, and improving efficiency with the aim not only to improve the financial situation but also to provide impetus for future academic development.
Decisions on improved efficiency at the University from 2025-2027 will be incorporated into upcoming budget work and will result in reduced costs of 51 million SEK over the next three years.
The measures that have been decided are based on data and strategic discussions over recent years in the University Governing Board and the Advisory Council to the Vice-Chancellor, and with School management and trade unions through MBL negotiations.
The current financial situation at Dalarna University, with low public authority capital (myndighetskapital) and low student revenue (studentintäkter), requires long-term, structural changes rather than short-term changes. A balanced budget is the concern of everyone at the University. It takes time to implement measures and by early 2027, the expectation is that the collective results of the measures taken will demonstrate that the University has both a robust economy as well as what is needed to enable growth and high-quality education and research.
The work to achieve a sound economy involves four consecutive processes:
Short-term (in 2024):
- Increase revenue: increase student numbers.
- Reduce costs: reduce variable costs, such as work-related trips and conferences.
Medium-long term (1-3 years) and long-term (more than 3 years):
- Consolidate and make structural changes at the University to achieve a balanced budget.
- Reduce costs for premises.
