CHF 25 million cut for USI and SUPSI: what changes for cross-border workers

Context

TL;DR

• Ticino cuts 25M francs for health insurance, affecting universities.
• USI faces 6.5M loss, 5% of its budget, risking competitiveness.
• SUPSI to reduce 1.3M, 80% costs tied to staff, jobs at risk.
• International student fees may rise, discouraging enrollments.

Key facts

• Amount cut: 25 million francs
• USI cut: 6.5 million francs over two years
• SUPSI cut: 1.3 million francs
• Current USI fees: 4,000 francs for Swiss, 8,000 for international
• USI budget: 130 million francs
• SUPSI staff costs: 80% of total costs
• Decision deadline: End of 2024
• Enrollment start: February 2025

The Ticino Cantonal Government has approved a savings package worth 25 million francs to finance the two health insurance initiatives. Among the sectors affected are public transport, refugees, services for people with disabilities, and the two cantonal academic institutions: the Università della Svizzera Italiana (USI) and the Scuola universitaria professionale della Svizzera italiana (SUPSI). For USI, the direct cut amounts to 5.5 million francs, leading to an overall reduction of 6.5 million francs over two years, including the one million cut in 2023.

The USI budget at risk

The interim rector of USI, Gabriele Balbi, describes the situation as a 'perfect storm' threatening the canton’s academic strategy. 'This cut will have a significant impact,' explains Balbi, noting that with a budget of 130 million francs, the loss of 6.5 million represents nearly 5% of revenue. 'The main concern is the strategic vision: what kind of university does Ticino want for the next thirty years? Do we want to maintain this jewel we have built, or opt for something different?' the rector asks. USI has already tapped into its reserves and is evaluating further measures, but the risk of losing competitiveness in the Swiss academic landscape is real.

SUPSI, for its part, will face a reduction of 1.3 million francs. The director-general, Franco Gervasoni, points out that 75% of the institute’s costs come from human resources, leaving little room for maneuver. 'We will need to carefully analyze every expense item to avoid compromising attractiveness and competitiveness, especially in an increasingly dynamic academic context,' Gervasoni states.

📊 Balbi warns: 'It is an unprecedented situation that will put the entire Ticino academic system to the test.'

Federal cuts already underway

Both institutions are already grappling with cuts decided at the federal level, which add further challenges. Balbi recalls that for over a year and a half, working groups have been addressing these future cuts and the potential equalization of university fees envisaged by bilateral agreements with the European Union. 'This is an unprecedented situation that will put the entire Ticino academic system to the test,' the rector concludes.

Operational details

For USI and SUPSI, the reduction in public funding arrives at a critical moment. For years, the two institutions have been a key reference point for cross-border workers and international students, attracting talent from across Europe. However, the Ticino State Council’s decision could force the universities to rethink their policies, with direct repercussions for cross-border commuters who attend their courses.

The increase in tuition fees for international students

One of the solutions proposed by the Ticino Government to mitigate the impact of the cuts is to raise university tuition fees for international students. Currently, the annual tuition at USI stands at 4,000 francs for Swiss students and 8,000 francs for international students. 'These figures are already among the highest in Switzerland,' explains Balbi, 'because the Canton of Ticino funds the university to a lesser extent than other cantons.' The prospect of further increases could discourage international students from enrolling, who are already burdened by high costs and competition from universities in other European countries.

Competitiveness at risk

SUPSI, which relies on a highly regarded professional training model beloved by cross-border workers, risks losing its appeal. '80% of our costs are related to staff,' explains Gervasoni. 'Any cuts to this item could lead to job reductions, which in Ticino represent a significant added value, especially for those working at the border.' The concern is that the loss of competitiveness could push students and faculty to other locations, reducing the educational offerings available to cross-border commuters who cross the border daily to attend classes in Lugano, Mendrisio, or Locarno.

Comparison with the previous situation

Before the cuts, USI and SUPSI could rely on stable funding and a steady growth in enrolments. Now, with an overall reduction of 6.8 million francs, the two institutions will need to revise their strategic plans. 'We are facing an unprecedented situation,' says Balbi. 'The risk is that Ticino’s universities will lose ground to those in other Swiss regions, where public funding is more substantial.'

Possible scenarios

If the Government does not introduce further measures, the two universities could be forced to:

• Reduce their educational offerings by cutting less popular courses;
• Increase tuition fees for all students, both Swiss and international;
• Cut jobs, with direct consequences for local employment;
• Decrease investments in research and innovation, compromising teaching quality.

These scenarios, if confirmed, could have a direct impact on cross-border workers, who may need to reconsider their study plans or seek alternatives in other cantons.

Useful tools to protect your net income

To reduce FX leakage, compare CHF-EUR exchange options and banks for cross-border workers.

Key points

For cross-border workers attending USI or SUPSI, the coming weeks will be decisive. The two universities are evaluating how to address the cuts, and some measures could come into effect as early as the next academic year. Here’s what you should do to protect your interests.

Step 1: Monitor official communications

USI and SUPSI will publish official updates on the measures adopted in the coming days. It is essential to stay informed through institutional channels, such as websites and newsletters. 'Final decisions will be made by the end of the year,' explains Balbi. 'In the meantime, we urge all students to follow official communications and participate in the informative meetings organized by the faculties.'

Step 2: Explore alternatives

If the increase in tuition fees for foreign students is confirmed, cross-border workers may consider other options, such as:

• Enrolling in online courses offered by other Swiss universities;
• Choosing universities in regions with lower tuition fees, such as German-speaking Switzerland;
• Checking whether their employers offer contributions for education.

Step 3: Contact the guidance offices

The guidance offices at USI and SUPSI are available to support students. 'We are aware that this situation may create uncertainty,' says Gervasoni. 'That’s why we are organizing individual meetings to evaluate the best solutions together.' Students can book an appointment through the official websites of the two institutions.

Step 4: Review your budget

An increase in tuition fees or a reduction in scholarship funding could impact your personal finances. It is advisable to:

• Review your monthly expenses;
• Consider applying for loans or scholarships;
• Contact your employer to check for available training subsidies.

Step 5: Prepare for changes

If the cuts lead to a reduction in courses, it is useful to promptly inform yourself about the alternatives proposed by the universities. 'We are working to ensure the continuity of the most in-demand study programs,' assures Balbi. 'However, some changes may be unavoidable.'

📊 Useful tools

For cross-border workers looking to assess the financial impact of the cuts, the salary calculator can help estimate your finances based on potential tuition fee increases or income reductions. Additionally, the university tuition fees comparator allows you to compare the costs of Ticinese universities with those in other cantons.

⚠️ Key deadlines to remember

• By the end of 2024: USI and SUPSI will publish definitive measures;
• By February 2025: enrollment begins for the 2025/2026 academic year;
• By June 2025: final decision on federal cuts affecting USI.

Staying informed and acting promptly will be crucial to navigating this period of uncertainty.

Source: ticinonews.ch