Like other universities of applied sciences and research universities in the Netherlands, HZ University of Applied Sciences is facing a number of measures and developments that are affecting the institution’s finances. HZ is now taking several steps to ensure it remains financially healthy in the future.
HZ is being affected by nationwide education budget cuts totaling one and a half billion euros, the impact of the 'Balanced Internationalization Act', a declining number of young people in the province, lower-than-expected student intake in 2024, and the eventual discontinuation of special funding for small-scale programs. With equity of over 40 million euros and a solvency ratio [1] of 51 percent, HZ is currently in a very healthy financial position and it intends to stay that way. Therefore, the university aims to save 2.5 million euros next year, increasing to a structural saving of 7 million euros annually from 2029 onwards. HZ’s total budget is approximately 80 million euros.
Strategic choices
HZ will achieve these savings primarily by working more efficiently and intelligently, keeping a sharper eye on expenditures, and making strategic choices. This includes, for example, increasing collaboration between programs, clustering activities, and cooperating more closely - as an independent university of applied sciences - with other educational institutions, both within and outside the province.
In the coming years, HZ will reduce its staff from 548 FTEs to 494 FTEs by 2029, a decrease of 54 FTEs. This decline can be partially offset by natural attrition—by 2031, 85 employees (58 FTEs) will retire—and by taking a more critical look at which vacancies should or should not be filled and which temporary contracts should or should not be extended.
Opportunities
On the other hand, HZ continues to focus on expanding short-term courses, part-time education, and practice-based research. Project subsidies already account for about 15 percent of the budget. These offer definite opportunities, though not guarantees. In addition, HZ continues to lobby in The Hague for so-called capacity-based funding [2] and for an exemption status for regional universities of applied sciences under the WIB.
At HZ, a steering committee is currently working on exploring ways to cut spending. The group includes, among others, board member Hans Camps, the domain directors, the heads of Finance and HR, and the new Director of Operations, Joeri Versluis.
“We are in a healthy financial position, and of course we want to keep it that way. That requires well-considered decisions. That’s why we’re critically examining all our structures, activities, and processes, and keeping a close eye on our expenses. We’re starting early, which gives us the space to carefully develop a well-founded set of measures", says Versluis.
“HZ has been a stable organization for years, with a strong foundation of quality. Audits consistently confirm that our education, research, and quality assurance are in good order. We’ve been among the top universities of applied sciences in the Netherlands for some time now. And that’s a key starting point. It gives us the confidence that we can successfully meet these challenges.”
[1] Solvency is the ratio between equity and total assets. A ratio between 25 and 40 percent is considered normal for educational institutions.
[2] A funding model with a fixed base amount, so that educational institutions are less dependent on the number of students.