The Waiariki Institute of Technology is facing a $2 million loss this year - and possible staff cuts - as student numbers plummet.
Chief executive Pim Borren said the institute had been forced to budget for a deficit because student enrolments were down by 17 per cent, which meant an
income shortage of $5 million.
Dr Borren said the $2 million deficit was subject to approval from the Rotorua polytechnic's council when it meets today.
Although there could be job losses, there would not be major cuts.
"There will be changes but I'm very optimistic. We want to do everything we can to protect jobs."
Several factors had led to the drop in student numbers, including competition from other tertiary institutes, such as Te Wananga o Aotearoa.
Dr Borren believed Waiariki offered too many qualifications and a review needed to be carried out to examine this.
Negative publicity last year over problems with the Bachelor of Applied Social Sciences and its subsequent end had not helped.
The Government's new funding model to be introduced in 2008, which would be a move away from the "bums on seats approach", would benefit Waiariki but "we need to get through the next 20 months".
Dr Borren said Waiariki was a sound organisation but he acknowledged work needed to be done to rebuild the community's confidence.
Waiariki ended last year with a $646,000 surplus, about $250,000 short of that budgeted for.
The institute admitted this month it was under "severe financial pressure".
- DAILY POST
