University to Take a “crisis approach” to Tackle Crushing Debt and Low Enrolments

Words by Zoë Mills (they/she)

The university is taking a “crisis approach” in an attempt to increase domestic enrollment numbers after extremely low enrollments in the past few years. 

Documents leaked to Salient detail statistics regarding the decline in enrolment numbers, university debt, and the university's plan moving forward to increase enrollments. This information was presented to staff last week. 

Total Domestic EFTs (Equivalent Full-Time students) enrolled are currently at 13,524, down by 1463 students in comparison to this time last year. University accommodation is only at 92% occupancy. Total university (and VUW foundation) losses from 2022 equate to $25.3 million, with closing debt sitting at a whopping $83 million at the end of 2022. The 2023 budget estimates that, by the end of the coming year, this debt will increase to $118 million.

The university is currently in the process of developing and adopting a new “EFT Growth Program” with the hope of "improving our recruitment and retention activities”, “increas[ing] EFTS”, and “return[ing] us to sustainable financial footing”. The program will be sponsored by Vice Chancellor Nic Smith and led by multiple university leaders including Chief Operating Officer Simon Johnson. “Reversing [the] 2022 operating loss” is cited as a main challenge to the program. 

“The past few years have seen the intersection of changes in student demand, the growth of new areas of study and the waning of others, demographic changes, unique economic conditions (i.e. low unemployment and growing cost of living), closed borders, and the broader impacts of COVID-19,” a university spokesperson told Salient in a statement. 

“Responding to these changes requires a strong focus on student recruitment and retention. We have a range of plans and strategies underway this year, which are all being coordinated through a central programme of work. There will be opportunities for staff and students to contribute to this work,” they said.