EIT's council chairwoman has claimed it would have drifted into "the red" if a merger of the country's polytechnics did not go ahead.
Education Minister Chris Hipkins announced at the beginning of August that the country's 16 polytechnics and institutes of technology will be disestablished and merged into one national institute.
EIT, the Hawke's Bay region's institute, has consistently prided itself on its financial stability, and strong surplus figures.
But its council chairwoman Geraldine Travers has revealed that the future might not have been so bright.
Travers told Hawke's Bay Today that going into a deficit would have happened in