University of Bologna Budget Plan for 2025-2027

The Board of Governors of the University of Bologna has approved the University’s Unified Budget Plan for the 2025-2027 period.

This budget has been developed in a markedly different context from the previous 2024-2026 plan. Changes to the financing structure of the Ordinary Financing Fund (FFO) for the university system have led to lower-than-expected allocations. Additionally, universities face increased non-compressible costs, primarily due to personnel expenses, salary increases, and ISTAT adjustments.

Despite necessary cost containment measures, both for current operations and investments, the budget ensures continuity in services and compliance with the University's institutional responsibilities. Resources have also been approved to support the 2025 personnel plan, stabilizing approximately 50% of RTDA researcher positions funded under the PNRR (National Recovery and Resilience Plan). The budget aims to guarantee short- and medium-term sustainability while reserving Net Asset resources for future years.

ORDINARY FINANCING FUND AND STUDENT CONTRIBUTIONS
The University's main sources of revenue are the Ordinary Financing Fund (FFO) and student contributions. The FFO for 2025 is estimated at €475.1 million, a significant decrease of approximately €21 million compared to the previous budget.

Revenues from student contributions, the second-largest source of income, are projected at €127.85 million for 2025, an increase of €4.5 million compared to the previous budget. This estimate accounts for a 5% reduction in tuition fee exemptions and a 4% increase in enrolments among students whose ISEE (Equivalent Economic Situation Indicator) exceeds €27,000, while proudly maintaining the student support measures adopted by our University. Broadly speaking, the right to Higher Education and supporting students remain a key priority for the University.

BUDGET AND INVESTMENTS
The overall budget for 2025 allocates approximately €972.59 million for annual operations and €122.21 million for investments, bringing the total to €1.094 billion. Total costs have shown a steady increase in recent years: between the 2022-2024 and 2025-2027 budgets, costs have risen by approximately €196 million, corresponding to a 21.3% increase.

Over the 2025-2027 period, the University plans multi-year investments totalling approximately €229.4 million, a decrease of €29.52 million compared to the 2024-2026 plan.

PERSONNEL COSTS AND STUDENT SUPPORT
Personnel costs are the largest expense category, amounting to €502.85 million in 2025, an increase of €11.8 million compared to the 2024 budget. Of this amount, €367.66 million is allocated for faculty and researchers, and €135.19 million for management and administrative staff. Additional funding for new hires over the 2025-2027 period will add €88.4 million, bringing the total increase in personnel expenses to €59 million compared to the previous three-year plan, of which €48 million is attributed to ISTAT adjustments.

Funds for student support amount to €106.35 million. Costs for medical specialization contracts and doctoral scholarships are expected to decrease, with €36.29 million allocated to the latter, reflecting the conclusion of doctoral programmes funded through PON (National Operational Programme) financing.

Projections for other student and scholarship support measures total €7.72 million for 2025, an increase of €1.65 million compared to 2024. The University's budget also allocates €19.55 million to scholarships and awards directly managed through institutional funds.

ENERGY AND INFRASTRUCTURE
The budget provides €20.7 million to cover utility costs for electricity, gas, and district heating, a reduction of €4.34 million compared to the 2024 forecast, thanks to the University's Energy Master Plan.

The new multi-year budget allocates €210.4 million over the 2025-2027 period for infrastructure needs, including the New Three-Year Works Plan (as per Legislative Decree 36/2023, "Public Procurement Code"), extraordinary maintenance, and other construction projects. On the front of rents paid by the University, the decline observed in previous years stabilizes, with a 2025 forecast of €2.37 million.

ANNUAL AND MULTI-YEAR PLANNING
The 2025 annual plan and the 2025-2027 multi-year plan were developed under a scenario of financial sustainability, reflecting significant changes compared to past years. In addition to utilizing Net Asset reserves, measures have been adopted to improve the balance between revenues and current management costs and to limit new investments.

These measures aim to ensure the following objectives in the context of reduced resources:

• Allocating departmental resources to support institutional teaching and research activities.

• Supporting the activities of the Bologna and Campuses Management Divisions, following a rationalization primarily of service contracts.

• Implementing previously approved personnel policies, covering salary increases and automatic career progression costs, as well as legally mandated interventions.

• Sustaining student support policies, including merit recognition and financial aid for economically disadvantaged students, in line with previous years.

• Supporting the building plan by managing funding sources effectively, limiting the use of budgetary resources.