University Leadership Signs Uninspired Pact to Remain Able to Act
On Thursday, July 17, 2025, the managements of Hessian universities and the Hessian Ministry of Science and Research, Arts and Culture signed the Hessian Higher Education Pact for the years 2026 to 2031, which governs state funding for Hesse’s universities during the stated period. With tax revenues falling short of projections, universities are facing massive structural cuts – a political framework predetermined by the state government.
Since 2002, university funding in Hesse has been regulated through a “Higher Education Pact” negotiated between the state and its universities. These funds consist of a so-called base budget and a performance-based budget. Allocation of the base budget (which accounts for most of the funds) is based on student enrollment figures from the year 2020. Allocations from the performance-based budget are guided by how well universities meet their targets in the areas of research, teaching, gender equality, and internationalization.
Key points of the pact include a €30 million reduction in university budgets in 2026, a revision of the performance parameters, no comprehensive funding of the 2025 collectively agreed pay increases, and only partial compensation of the 2026 pay increases. In 2027 and beyond, the state will compensate anticipated increases in personnel costs by up to a 2.5% increase, and beyond 4% in the ensuing year – leaving universities to cover the gap. Inflation-driven increases in material costs will not be compensated.
The agreement now signed puts immense pressure on Hessian universities to implement structural changes. Due to the new rules on performance parameters, not all universities will be affected equally. The universities are already starting the pact period with a deficit. Previous rises in the available university budget have been entirely consumed by dramatic increases in construction and energy costs, along with the financing of additional tasks. With further expected cost increases caused by collective wage agreements and inflation, universities project a cumulative deficit of around €1 billion over the next six years – equivalent to 10% of their personnel budgets. This means they will have to shrink over the term of the pact.
Against this background, adjustments and structural changes will be necessary – accompanied by the challenge of implementing them responsibly in dialogue with faculties and governing bodies.
The presidents of TU Darmstadt, Goethe University Frankfurt, Frankfurt University of Applied Sciences, and the University of Music and Performing Arts Frankfurt (HfMDK) commented on the outcome of the negotiations: “To address pressing global challenges and advance our state’s modernization, we need skilled professionals and innovation. Students are the experts of our future. Ensuring their high-quality education and securing a strong and broad base of qualified professionals for the economy and society must be our top priority. Given the importance of research, teaching, and the arts for the economy and society, the scale of the cuts – over 10% – has met with broad incomprehension. The state government says it wants to kick-start the economy – but where are the smart and creative minds supposed to come from, if not from Hessian universities? The announced downsizing process will have direct consequences for the full range of academic disciplines – from the humanities, cultural and social sciences to natural sciences, engineering, life sciences, and medicine. This is no way to secure the next generation of skilled professionals. We are also deeply disappointed that developments in student numbers were not adequately considered in the base budget’s allocation. The distribution key now applied penalizes those universities that have managed to maintain student numbers at the agreed upon levels over the past five years, while favoring those that enrolled fewer students. Going forward, the focus can only be on limiting performance losses – precisely at a time when skilled professionals and innovation are more essential than ever for Hesse’s economic recovery.”
Professor Enrico Schleiff, President of Goethe University Frankfurt, adds: “As our universities’ leadership, we are aware that institutions of higher learning must also contribute to budget consolidation. However, the pact introduces new conditions without granting a transition period and without recognizing achievements under the previous pact – forcing us into an immediate ‘emergency stop’ to plan meaningful changes in line with our University Development Plan, and to remain attractive and high-performing. The pact also significantly limits our strategic room for maneuver: since enrollment figures are used as a parameter for funding, a reduction in student numbers would result in further funding cuts.”
Professor Kai-Oliver Schocke, President of Frankfurt University of Applied Sciences, states: “Demand for our degree programs has been and remains excellent: Contrary to the wider trend in Hesse, we have maintained our student numbers in recent years. We will now be forced to significantly reduce the number of study places, and all our efforts will shift towards managing this painful transformation process in the best way possible and remaining an attractive university.”
Professor Elmar Fulda, President of the University of Music and Performing Arts Frankfurt (HfMDK), says: “The decision to approve this Higher Education Pact was not taken lightly by us, especially since starting in 2026, it will mean a reduction in personnel and material costs, while positions will be filled more slowly or not at all, and services in the areas of the arts, research, teaching, and administration will be cut. Far from considering the pact a temporary ‘operational glitch,’ we view it as a long-term shift and a lasting competitive disadvantage in the competition for top talent. That’s why we must think carefully about how we, as Hesse’s only university for music, dance, theater, and related disciplines, want to position ourselves in the years ahead – what to let go of, and above all, what our core mission is.”
Professor Tanja Brühl, President of TU Darmstadt, concludes: “I would have wished for more time in the discussions between the state and universities to engage in dialogue and weigh arguments. Especially under such challenging circumstances, negotiations require time and space. The cuts are threatening TU Darmstadt’s marked advancements in research, teaching, entrepreneurship, and science communication. Together with our university’s members and institutions, we will shape this process responsibly.”
HMWK press release on the 2026-2031 Higher Education Pact (in German)
Statement on the Hessian Higher Education Pact 2026–2031
On July 17, 2025, the presidents of the state’s 14 universities signed the Hessian Higher Education Pact 2026–2031. However, we wish to emphasize that the fundamental criticism we voiced during the negotiations still stands – which is why we are putting the following statement on record:
We believe the provisions of the Higher Education Pact 2026–2031 will jeopardize our universities’ financial security and development capacity. For this reason, we oppose the planned financial cutbacks and the structural downsizing of the Hessian higher education sector.
We welcome the fact that the Hessian Ministry of Science and Research, Arts and Culture has consistently transferred individual programs within its area of responsibility into a new base budget, enabling a significant reduction in bureaucracy and greater flexibility.
We are signing the Higher Education Pact to secure predictable minimum resources as part of our overall responsibility as university executive boards.
In doing so, we are ensuring that the tasks and challenges in research, teaching, the arts, and transfer can be met as effectively as possible under the current circumstances – despite the profound cutbacks.
We are signing the pact in good faith and are relying on the promised commencement of new negotiations in the event of an economic upturn. We expect that, if the funds allocated to the Ministry are increased, the universities will be considered appropriately and without delay.
