SLU news
Suspension of capital makes continued investment in teaching positions possible
Published: 27 September 2018
SLU has a large surplus capital that consists of unused direct government funding – i.e. tax revenue. Annual direct government funding must normally be used within the year in question. For years, capital at SLU has not been used as intended, which makes discussing allocation of funds at SLU level a difficult task. In 2017, to reduce capital, the SLU Board decided to introduce a fee of 10 per cent for capital that exceeds 10 per cent of the turnover.
The faculty (i.e. the faculty centrally and all departments) has planned for budget deficits for years but has not reached these goals, despite pressure from the SLU Board. If a public authority like SLU reports great capitals, this is an argument for reducing funding. The same thing applies internally to the NJ Faculty.
For the NJ Faculty, the issue is SEK 175 million in balanced capital within the reporting area research and doctoral education, which largely consists of unused direct government funding. During its meeting on 12 September, the faculty board decided to suspend the half of its balanced capital that exceeds the established maximum (decided by the SLU Board) of ten per cent at the end of 2018. The capital in question concerns the reporting area research and doctoral education, and the remaining capital that exceeds 10 per cent of its turnover at the end of 2019.
When calculating the balanced capital, several exceptions are made. For example, capital reserved by the department to fund post-docs and doctoral students connected to the faculty’s strategic initiatives is exempted, as is capital intended to fund the coming year’s investment write-offs.
How will the suspended capital be used?
During the year, the faculty management has discussed the need to employ teachers with all departments. Above all, the departments have reported a great need to recruit senior lecturers and associate senior lecturers. The faculty co-funds 75 per cent of associate senior lecturer salaries and 35 per cent of senior lecturer salaries. As the faculty centrally has substantial deficits because of the previously approved initiatives regarding co-funding of posts and because funding from SLU Board has now been reduced, there will be very limited room for new teaching positions during the next few years. This decision by the faculty board to suspend capital will make it possible to continue to recruit teachers to cover the needs reported by the departments to the faculty management.