University of Haifa Faces Massive Deficit, Plans Staff Cuts and Academic Merger

The University of Haifa is confronting a structural deficit expected to reach approximately 58 million shekels annually starting in the academic year 2029-2030, according to a financial efficiency plan approved by the Planning and Budgeting Committee of the Council for Higher Education. The plan, covering the years 2026-2030, mandates significant budget cuts, additional revenue generation, and ongoing progress reporting. Around 170 faculty members are expected to lose their positions or face reduced employment.

The university's financial deterioration stems mainly from the burden of pension liabilities and changes in the research funding model. The termination of a dedicated pension fund and rising expenses are projected to increase costs by about 42 million shekels, while a reduction in the "safety net" due to the updated research funding model could cut another 16 million shekels, despite an estimated 4 million shekels in efficiency savings.

The Planning and Budgeting Committee recently approved the efficiency plan, contingent on the university's governing board and senior management signing off on its implementation. The university aims to save 24 million shekels in 2026-27, rising to 48 million shekels by 2028-29. Additional measures include increasing medical student enrollment beyond approved quotas and withdrawing 5.5 million shekels from the pension fund.

The university also plans to raise new funds through donations and investment income, requiring about 9.7 million shekels in additional resources in 2026-27 alone. A key element of the strategy is exploring an academic merger with another institution offering engineering programs, though details and timing remain unspecified.

The committee will monitor the university's progress closely, with potential sanctions including canceling approved enrollment increases, adjusting safety net provisions, or appointing an external financial controller if the budget remains unbalanced. Quarterly detailed reports and biannual oversight meetings involving university leadership are mandated. By 2028-29, an external audit of salary expenses may be conducted, possibly leading to further efficiency measures. The committee praised the university's cooperation but emphasized ongoing scrutiny to ensure compliance with the plan.