There are concerns that university funding is not keeping up with costs.
A Tertiary Education Commission briefing paper suggests the financial books of Massey University and Wellington's Victoria University are deemed high risk.
RNZ reports eight universities had forecast a combined deficit of $42 million.
Universities New Zealand Executive Director Chris Whelan told Mike Hosking the Government controls about 70% of funding.
He says they are making choices on expenditure, but it comes down to a conversation with Government.
LISTEN ABOVE