Grant agreement provides planning certainty

The basic funding for Saxony’s universities has been secured. The Minister-President, the Minister for Science and Finance and the university vice-chancellors have signed a funding agreement valid for eight years.

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“For Mittweida University of Applied Sciences, this means we can set about tackling the tasks entrusted to us,” says Professor Volker Tolkmitt. He signed the agreement at the State Chancellery in Dresden alongside the 13 other vice-chancellors of the state universities, Minister-President Michael Kretschmer, Minister for Science Sebastian Gemkow and Minister for Finance Hartmut Vorjohann.

Through this new grant agreement, the Free State of Saxony aims to put higher education institutions in an even better position to tackle challenges in higher education policy, such as the shortage of skilled workers, digitalisation in teaching and administration, sustainable campus development and technology transfer.

“Saxony can only overcome the challenge of the skills shortage if we, as a Free State, open ourselves up even further with a spirit of curiosity and a willingness to experiment. This is what Mittweida University of Applied Sciences stands for, and this is what Saxony’s universities stand for,” said Tolkmitt. “I am pleased that, together with the State Rectors’ Conference, we have succeeded in articulating our contribution to Saxony’s future in a convincing manner.”

Eight years of planning certainty with new responsibilities

The grant agreement, signed on 15 May 2024, covers the years 2025 to 2032. Over these eight years, the Free State of Saxony will provide its universities with a total of around seven billion euros, taking into account the increases in fixed and expected collective agreement and salary scales. This essentially constitutes the basic funding for all universities for the years 2025 to 2032.

In addition to increases in collective agreement rates and salary scales, universities will be provided with further funding for specific tasks, most of which are already set out in the new Higher Education Act and will increase over the term of the grant agreement: The grant will rise from 5 million euros in 2025 to 15 million euros and 25 million euros in 2026 and 2027, before 30 million euros is allocated annually to the 14 Saxon universities from 2028 to 2032.

“I am pleased that we have once again succeeded in securing a funding agreement for such a long period,” said Sebastian Gemkow, Minister for Science. “With Saxony’s financial leeway shrinking, it is by no means a given that we can provide around seven billion euros as a foundation for the universities and even make funds available for additional tasks. However, I am convinced that it is necessary to provide this planning certainty for the universities. Only in this way will they be able to position themselves strategically for the future.”

The additional funding is intended to put universities in an even better position to tackle higher education policy challenges such as the shortage of skilled workers, digitalisation in teaching and administration, sustainable campus development and technology transfer.

Kretschmer: “A clear commitment by the Saxon State Government to strong universities”

“Saxony’s academic sector, with its research and teaching, forms the foundation for innovation and competitiveness, as well as for the Free State’s economic strength and appeal,” said Minister-President Michael Kretschmer: “The renewal of the funding agreement for eight years is a clear commitment by the Saxon State Government to strong higher education institutions and, at the same time, an expression of the great confidence placed in these institutions. With this funding agreement, we are laying the foundations to ensure that our universities and higher education institutions can continue to succeed in national and international competition.”

For Mittweida University of Applied Sciences, this means it can continue on its successful path. Despite limited financial resources, Mittweida University has developed over the past 30 years into a model of success for higher education in Saxony. “Far removed from the pull of the major cities, we have for years successfully bucked the trend of falling student numbers. Because we do things differently, because we create the space to make new ideas a success,” says Volker Tolkmitt. “We will continue along this path and intensify our efforts even further. Digitalisation, sustainability, cosmopolitanism – what Saxony demands of its universities is already a reality here. As a university community, we will work to intensify this further and continue to build on our excellence in student support and applied research.”

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