Planning security until 2024

The signing of the grant agreement between the state government and the universities on December 19, 2016, establishes a solid foundation and an exceptionally long-term funding framework for Saxony’s 14 universities through the end of 2024.

The current grant agreement not only provides financial planning certainty for the universities over the next eight years but also increases their funding and scope for action with a total volume of approximately 6.5 billion euros. In December 2013, the previous grant agreement—with a term of three years through the end of 2016—had been signed. The conclusion of the 2017–2024 grant agreement fulfills a key provision of the coalition agreement.

Among other things, the agreement ensures the funding of 9,034 staff positions at universities. In addition, it was agreed to abandon the planned elimination of 754 positions starting in 2017. The funds made available due to the federal government’s assumption of BAföG (German financial aid for students) funding for students, as well as the federal government’s 2020 Higher Education Pact funds, are to continue to be used in their entirety for the higher education sector. In addition, the Free State of Saxony is providing the state’s share of the Excellence Initiative. Furthermore, additional annual investment grants for universities are possible depending on budgetary developments

Prime Minister Stanislaw Tillich considers the agreement a very good outcome.

“The state government remains a solid partner to the universities. With this agreement, we are creating the conditions necessary for our universities and colleges to continue to succeed in national and international competition. This also applies to the continuation of the Excellence Initiative. Strong, vibrant, and innovative universities are an asset for all of us. After all, they are not only employers and important centers for training skilled workers; they are also drivers of innovation and bring together bright minds from all over the world. That’s good for Saxony—that’s what we need.”

With regard to the long duration of the funding, he added:

“It hardly gets any more reliable than this.”

Minister of Science Dr. Eva-Maria Stange expressed her satisfaction:

“This grant agreement provides the solid financial foundation on which universities can continue to develop over the next eight years and distinguish themselves based on their strengths. We are ensuring a comprehensive range of degree programs as well as support for small disciplines, and we are placing a particular emphasis on research. We are witnessing a paradigm shift away from capacity cuts toward long-term planning security on a solid financial footing. We are not only maintaining the status quo but also guaranteeing a 2 percent increase through 2024. This ensures a good student-to-faculty ratio. The quality of teaching, research, and knowledge transfer can be further improved. The universities will fulfill their responsibilities to society as a whole and to their region. Excellence will be strengthened. No institution in Saxony can plan reliably and develop over such a long period of time. I am very pleased about that.”

Finance Minister Prof. Georg Unland explains:

“With this grant agreement, the Free State of Saxony guarantees financial and personnel planning security for the state universities over eight years. This is a great privilege compared to other state agencies and institutions, which do not have such long-term planning security. This agreement underscores the enormous importance the state government places on education and research. The universities are being given a high degree of trust, but also a great deal of responsibility to take advantage of the opportunities arising from this grant agreement and to achieve the strategic goals of the Saxon Higher Education Development Plan 2025.”

Prof. Dr. Hans Müller-Steinhagen, Chair of the State Rectors’ Conference and Rector of TU Dresden, emphasizes:

“The grant agreement signed today between the Free State of Saxony and the Saxon universities provides the universities with planning certainty regarding financial resources and positions for the next eight years—a duration that is unique nationwide. In addition, the staff reductions originally approved in 2010 by the Saxon State Parliament have been reversed. For TU Dresden, this means that approximately 250 positions will be retained, and for the first time in a long while, planning without staff cuts is finally possible again! We are grateful to the state government for this, as it would otherwise have been impossible for TUD to continue its positive development and submit promising proposals in the upcoming round of the Excellence Initiative.”

The grant agreement also establishes the performance obligations of the universities and forms the financial basis for the individual target agreements concluded between the Saxon Ministry of Science and the Arts and the individual universities. Among other things, the universities commit to meeting state targets for first-year students and total enrollment, to fully leveraging joint achievement and resource potential, and to further optimizing their administrative processes.

Download PDF: Grant Agreement 2017–2024
Publisher: State Government of Saxony