Setting the University of Otago's 2011 budget had not been an easy task, vice-chancellor Prof Sir David Skegg said yesterday.
The work had began for Otago staff last year when the Government signalled funding constraints and cuts to take effect from next year.
"Because of the savings identified by the task force set up last year, and the savings projected, we have been able to strike a budget which is satisfactory and which goes some way to meeting our capital expenditure requirements," Prof Skegg said.
The budget, which forecasts an operating surplus of almost $19 million, was adopted by the university council yesterday.
The budget report said 67% of the university's income was influenced by Government policy.
That included general funding and research funding allocations, Prof Skegg said. The Government also controlled what level of tuition fees universities could charge.
Council member Dr Royden Somerville asked whether the level of government influence was staying the same or changing, and whether any trends could be predicted for the next five years.
The level had remained reasonably consistent for at least the past four years, financial services director Grant McKenzie said.