Project Focus

Since 2002, the funding of universities in Hesse has been defined by Higher Education Pacts, negotiated between the State of Hesse and its 14 universities. The funds provided through this pact consist of a so-called base budget and a performance-based budget. Allocations within the base budget – which constitutes the majority of funding – are based on student enrolment figures dating back to 2020. Allocations within the performance-based budget are tied to the achievement of specific targets in the areas of research, teaching, gender equality, and internationalisation.

Key points of the pact include: a reduction of university budgets by 30 million Euros in 2026, a revision of performance indicators, no comprehensive funding to offset the public-sector pay scale increases in 2025, and only limited compensation for pay increases in 2026. Expected increases in staff costs in 2027 and subsequent years will be covered by the State of Hesse only up to a growth rate of 2.5 % and above a threshold of 4 %. Compensations will be executed in the year following an increase. Universities may thus be required to bear part of the costs themselves. Inflation-driven increases in material as well as operating costs will not be compensated.

The agreement puts tremendous pressure on Hessian universities to undergo structural change. Due to the revised performance indicators, the resulting burdens will not be distributed evenly among universities. Universities are already dealing with an existing deficit. Previous increases in university funding have been entirely absorbed by significant growth in construction and energy costs, as well as the need to finance additional tasks. With further increases in pay scales and inflation expected, the universities’ deficits will continue to grow over the next six years. Hessian universities anticipate a total budget shortfall of around one billion Euros – equivalent to 10 % of their total personnel expenditures. This means that universities are forced to decrease over the course of the coming years.

Adjustments and structural changes will be imperative. They need to be dealt with in a responsible manner, in dialogue with the departments and the governing bodies of the universities.

President Tanja Brühl and Vice President for Administration and Financial Affairs Martin Lommel assess the outcome and its implications for TU Darmstadt:

“The Hessian Higher Education Pact will significantly weaken Hesse’s volume and strength for innovation and competitiveness. As universities, we essentially contribute to the economic development and resilience of our country through research, teaching, and Third Mission activities. The cuts set down in the pact put these powerful contributions at risk for a long time to come. The cuts will directly affect our university. Adjusted for inflation, the budget for TU Darmstadt will remain at the 2010 level – even though our student numbers have increased by 20 % since then. Third-party funding competitively raised by TU Darmstadt researchers has grown by more than 50 %. We have successfully translated scientific innovations into market-ready solutions through an impressive number of start-ups.”

President Tanja Brühl and Vice President for Administration and Financial Affairs Martin Lommel further state: “Expected increases in personnel and operating costs will lead to a budget deficit for TU Darmstadt. We need to offset this deficit through cuts in all sections of our university. We will handle this process in a responsible manner and in close dialogue with the members and organisational units of our university. We are grateful to all colleagues and students who have continuously raised their voices for TU Darmstadt and for strong conditions for science and research in Hesse over the past weeks. The outcome of the negotiations does not reflect what we had expected for TU Darmstadt.”

We will handle the limitations set by the Hessian State Government with utmost responsibility – despite vitally disagreeing with the imposed obligation to make substantial cuts. We will concentrate on the university’s core strengths and profile. This does imply, however, that we will not be able to fill some positions nor to continue some of our essential tasks and services.

We aim to devise the process of focusing our activities as transparently and participatory as possible. Based on clear and comprehensible parameters and criteria, the Executive Board will make feasible decisions. We will keep you informed throughout this process – via this website, in meetings of the Senate and University Assembly, and through a variety of dialogue formats.