The University of Haifa faces a structural deficit expected to reach approximately NIS 58 million per year starting in the 2029-2030 academic year, according to a financial efficiency plan approved by the Council for Higher Education's Planning and Budgeting Committee. The plan, which will apply from 2026 to 2030, requires the university to implement cuts and adjustments amounting to tens of millions of shekels annually, raise additional revenue sources, and report regularly on its progress. About 170 staff members are expected to lose their jobs or have their positions reduced.
According to the document, the anticipated deterioration in the university's financial situation stems mainly from two factors: The burden of budgetary pensions and changes in the research funding model. The end of the dedicated fund used for pension payments, alongside ongoing expenditure growth, is expected to weigh down the institution's budget by about NIS 42 million.
Concurrently, the reduction in the safety net following the update to the research model is expected to subtract an additional NIS 16 million from the university, following efficiency measures estimated at approximately NIS 4 million.
The plenum of the Planning and Budgeting Committee recently approved the efficiency plan, following a discussion held about a month prior. Its final approval is conditional on obtaining the consent of the university's Board of Governors and the signatures of the institution's president, director-general, and Board of Governors chairman on a commitment to its implementation.
According to the plan's targets, the University of Haifa is required to achieve savings of NIS 24 million in the 2026-2027 academic year, NIS 42 million in 2027-2028, NIS 48 million in 2028-2029, and NIS 46 million in 2029-2030 and in a steady state, compared to the 2025-2026 baseline year. Alongside the efficiency measures, the university is expected to reduce the deficit by approximately NIS 1.8 million in the 2026-2027 academic year by increasing the number of medical students beyond the approved quota. It is also expected to withdraw a remaining balance of about NIS 5.5 million from the dedicated fund used in recent years for budgetary pension payments.
The university committed to working toward balancing its budget also by raising new sources, including donations and increasing withdrawals from capital market investment yields. In the 2026-2027 academic year alone, the scope of required additional sources is estimated at approximately NIS 9.7 million. As part of the plan, the institution's management is required to advance an agreement with the administrative staff by the start of the 2027-2028 academic year, in coordination with the Finance Ministry's Wage Commissioner. In addition, it will be required to carry out further efficiency measures and align its research outputs with the new funding model.
One of the prominent clauses in the plan is the possibility of an academic merger. According to the decision of the Planning and Budgeting Committee, as part of the strategic move, the University of Haifa will consider merging with another institution that has engineering disciplines. The document did not specify which institution the merger might occur with or what stage the examination is in.
At the same time, the professional team of the Planning and Budgeting Committee will examine the target ratio between the number of faculty members and students at the university, as part of a systemic review ahead of the next five-year plan. Depending on the results, a recommendation may be made to alter the target set for the institution. Hundreds of lecturers are expected to end their employment.
The plan also includes a series of potential enforcement measures. If the University of Haifa fails to present a balanced budget each year, the professional team of the Planning and Budgeting Committee can recommend canceling the quota addition approved for it in August 2025, canceling the safety net adjustment approved in May 2026, and even appointing an accompanying accountant for the institution. Ahead of the 2027-2028 academic year, the committee will examine the implementation of the plan and the balance of the university's budget. If it turns out that the planned moves have not matured or are insufficient, additional efficiency steps and other measures will be considered to bring the institution to a permanent budget balance.
The university administration will be required to submit a detailed quarterly report to the Planning and Budgeting Committee on the implementation of the plan, including a comparison between actual expenses and income versus forecasts. In addition, two follow-up meetings will be held each year with the participation of the university president, director-general, and chief financial officer. It was further determined that by the 2028-2029 academic year, the option of appointing an external accountant on behalf of the committee will be examined to perform an in-depth review of wage expenses at the university. Depending on the findings, the university may be required to take additional efficiency steps. The plenum of the Planning and Budgeting Committee welcomed the cooperation of the University of Haifa administration and the reaching of agreements, but clarified that the implementation of the plan and meeting the set milestones will remain under ongoing monitoring.
University of Haifa: 'One of the most significant periods of growth and activity in our history'
University of Haifa response: "The University of Haifa is currently in one of the most significant periods of growth and activity in its history. The academic and financial strength of the institution is evident in several key areas: Accelerated academic development: Expanding the course offerings, including the historic establishment of the School of Medicine as well as the School of Design; Student trust: Continued upward trend and excellent registration figures for the various study programs."