The State's 13 Institutes of Technology could be facing a financial crisis because of recent cutbacks in Government spending, it was claimed last night.
The directors of the 13 colleges said they would have to borrow substantial sums to meet their various commitments in 2003.
The directors said the recent Estimates did not appear to cover the full range of pay rises scheduled for 2003.
They said there was an overall shortfall of about €39 million across the sector.
They met late last week to discuss the funding problems. They have since voiced their concerns to the Department of Education.
The €39 million shortfall consists of €36 million of pay costs, plus €3 million of other costs.
A statement from the council of directors said: "The Estimates appear not to provide for increases in the 2003 pay bill arising from decisions or agreements contracted in 2002 which are estimated at €36 million."
The directors claimed the Departments of Education and Finance approved certain "contractual arrangements with the sector", which committed the colleges to additional expenditure in 2003 above 2002 levels.
"These include PPF, new structures, and approved staff recruited in 2002. Furthermore, the Part-Time Act places a unique legal obligation on institutes to pay appropriate pro-rata rates to part-time staff," said their statement.
The director's spokesman Prof Ciaran O'Cathain, of Athlone IT, said it was clear the 2003 Estimates did not have regard for the decisions approved by the two Departments in 2002 and the colleges were now placed in a most difficult situation.
"In considering their options the institutes of technology are conscious that they require ministerial approval to borrow monies.
"Should approval be given to any such request it would, no doubt, impact on the 2004 budget of each institute as repayments would have to commence in that year," said Prof O'Cathain.
The council of directors is convinced the level of services currently offered by the colleges will be reduced in 2003, he concluded.
The university sector also recently reacted angrily to their allocation in the Estimates.
The presidents of several universities are particularly worried about the impact on research.
Just last week, the president of NUI Galway, Dr Iognáid Ó Muircheartaigh, said he was deeply worried about the cuts.
"The recent announcement by the Government, in the 2003 Estimates, of cuts in recurrent and capital funding for university education and research is of deep concern to the third-level sector," he said at a conferring ceremony.