Irish universities are teetering on a ”cliff-edge” due to chronic underfunding by the State over several years which has led to a €250 million deficit in the sector every year, the Oireachtas has heard.
State funding of higher education per student is 34 per cent less than it was in 2008, director general of the Irish Universities Association Paul Johnson told the education committee on Thursday.
“Government has acknowledged the problem but not moved fast enough to address it,” he said, adding the gap in funding now stands at around €250 million per annum.
“Our pre-budget submission thus sought €190 million in additional core funding this year and next to close that gap. Budget 2027 provided only €10 million in new core funding,” Johnson said.
The Department of Further Education’s budget for 2027 included a €34 million student support package, including a €150 reduction in the student contribution fee and a 4.5 per cent increase in SUSI maintenance grants.
The focus on student support comes amid a growing accommodation crisis, which has seen students commuting long distances, couch-surfing and working long hours to afford their educational costs.
However, the universities themselves now say they too are “treading water”, Paul Farrell, chairman of Trinity College Dublin’s board told the committee.
“It is incumbent upon us to point to the very real cliff-edge we are teetering upon,” he said.
“The help for students and families is welcome and is appreciated, but the budget day speeches offer no clear commitment to closing the remaining core funding gap.”
Mike Beary, chair of University College Dublin’s governing authority, said the sector was “now at the absolute limit of capacity” and “cannot deliver a world-class economy and society with one hand tied behind our back”.
Sean O’Driscoll, chairman of the governing authority at University College Cork (UCC), said his institution has become “increasingly reliant” on non-Exchequer income such as philanthropy, international student recruitment, and commercial income to make ends meet.
“UCC’s internationalisation strategy has helped diversify income streams. However, recent Government policy developments affecting visa arrangements, while outside the control of the higher education sector, are having a material impact on recruitment from key international markets, with an estimated financial impact of €3.7 million for UCC for 2026/27,” he said.
The universities called on the State to close this gap in core funding so they can carry out more research and lower student-to-teacher ratios.
They also asked for increased State support in the building of student accommodation in order to close the viability gap they face in building more homes on campus.