The vice-chancellor at the University of Canterbury, Rod Carr, wrote to staff last week warning them the university council is likely to present an austere budget for 2012.

“As many staff will be aware, we are facing some major challenges associated with preparation of our 2012 budget. No decisions have been made and no numbers are finalised at this stage. Some of these challenges are earthquake-related, others are issues the senior management team has previously identified.”

The vice-chancellor noted that there would be a loss of revenue arising from student withdrawals and lower recruitment related to the earthquakes, as well as increased costs associated with the earthquake.

“The current early draft budget for 2012 has a significant shortfall, of the order of $12- $18 million on an expenditure base of around $300 million. Over the next five weeks the senior management team will be working through various options to ensure we can present a viable budget for 2012.”

Dr Carr invited staff to provide their own thoughts to council on how to increase revenue, concentrate the university’s resources or cut costs.

“This year, more than almost any other year in the university’s recent history, we need to take a hard look at all costs and ensure that any dollar we spend is justified. There will be some short term pain.”