Topic: Budget 2026 and Area reduction 2025-2026
Place: The Auditorium, VilVite
Presented by: Ståle Ellingsen (head of department) and Julie Stavnes (head of administration)
Budget
The budget for 2026 consists of an Excel file with budget tables and a Word file with text descriptions of the various items in the budget proposal. This year, the faculty requires two versions of the long-term budget – a balanced version based on the assumption that some positive assumptions apply, and a stringent version without positive assumptions.
New this year is that the age limit for government employees will be increased from 70 to 72 years from 01.01.2026, which will result in a somewhat higher expected salary cost in the coming years than previously calculated.
Income and costs
Extraordinary study places that were created during the corona epidemic are now being phased out. This has an effect for BIO in 2026 in the form of a reduction in the basic funding.
Long-term budget
The budget is set up with a planned area reduction of 4000 m² from 2027. This provides a significant annual saving, but also an expected reduction in rental income of approximately 6 million NOK per year. Overall, we expect positive operating results in the upcoming budget period, and the accumulated deficit is expected to be reduced from approximately 30 million NOK today to approximately 7 million NOK in 2030.
Such a positive development assumes that the proposed area reduction will be implemented in its entirety with budgetary impact from 2027. Alternative long-term budgets were presented at the meeting in which the area reduction is either reduced by 50% (2000m2) or removed completely. From these it is clear that an area reduction of the magnitude proposed will be absolutely necessary in order to achieve positive economic development at the institute.
Results for 2026
For 2026, we expect a positive operating result of NOK -1.907 million, while accumulated profit at the end of 2026 is expected to be NOK 27.134 million.
Area reduction 2025-2026
The work on area reduction started in 2022 due to a large financial deficit. A total of 3,500 m² was identified and vacated in 2022/2023, but it was already clear at that time that there would be a need for further area reduction to be in a position to turn the financial situation in a positive direction.
The department currently has approximately 16,600 m² distributed across three buildings on Marineholmen: Thormøhlensgate 53 A, 53 B and 55 Bioblokken. Half of the current area is located in TM55 Bioblokken, the rest is distributed across 53A and B. The total rental cost for 2025 is approximately 40 million NOK.
Future plans
A working group was established in March 2025 to identify areas that can be reduced. The group, in collaboration with the department management, has prepared a proposal that involves moving out of TM53 A completely and distributing the activities and people currently located there, to our existing areas in TM53B and TM55. If the proposal is implemented, we will be able to reduce the area by 4000 m² and the rental costs by almost 25%.
It will require significant investments to make TM53 B and TM55 ready for new residents/densification, and we are in ongoing dialogue with the Faculty of science and technology (NT), the Estate and facilities management division (EIA) and UiB management on the matter. The process will involve a lot of moving activity for several groups, and those groups that do not move will also have to regroup to run their activities in a smaller area.
Further process
The proposed solution is now being reviewed in detail together with the subject groups and the department’s employees. The working group will then prepare a final report that will be sent for consultation to all employees at BIO. EIA/UiB must then decide whether there are funds to carry out the process. We are in continuous dialogue with the University at all levels to ensure that all parties involved have the information they need in the decision-making process and, not least, that all levels in the organization have a common understanding of the situation.
When a final proposal with a cost and progress plan is available, BIO must make a final decision on whether we want to implement the reduction.
The work plan is to finalize a proposal during the 3rd quarter. Based on this, we see it as completely unlikely that there will be any relocation activity in 2025. Our starting point is that the entire relocation process can be carried out during 2026.