Like other tertiary education bodies across the country, Charles Sturt University is trying to chip away at a large deficit exacerbated by the pandemic.

But even before coronavirus made matters worse, the institution had been cradling a $16.2 million structural deficit.

"We had expanded over a number of years and really were operating on reducing margins," Acting Vice Chancellor John Germov said.

"In fact, [we were] relying on our investment earnings to get us into a budget-positive state."

Professor Germov said this operational approach had been compounded by falling domestic student enrolments as well as the impact of the drought and bushfires.

Then, as the impact of coronavirus became clear, CSU forecast an almost $50 million deficit.

University forced to make cuts

As a result, the university changed and cut courses and reduced staff numbers to try to get back in the black.

A further 100 positions are set to go in the coming weeks, and employees will be offered voluntary redundancy.

Professor Germov said CSU had also delayed any capital spending that was not subject to contracts.

He said consultants had carried out an independent review of the university's budget position.

"They've confirmed that we are on track to end [the 2020-21 financial year] with about a $22 million deficit," Professor Germov said.

But he said the university was confident that by the end of the 2021-22 financial year it would be "at break even".

CSU has used a New South Wales parliamentary inquiry to highlight the challenges facing the tertiary education sector, before and during COVID-19.

Present structure poses challenges

In its submission, it suggested amending the Charles Sturt University Act to give it more flexibility with its campuses.

"This could, for example, mean removing any obligation to maintain a certain number of campuses, or to have them in particular locations", the submission stated.

Despite the submission, Professor Germov said CSU was committed to its existing sites.

"It would be preferable to have greater flexibility about what type of services were offered at particular campuses if demographics and population trends made those campuses less and less viable," he said.

"Rather than having to get an Act of Parliament changed, our preference would be to have that perhaps negotiated with the department or the minister of the day."

He said CSU's present structure posed challenges.

"It requires the reproduction of all the sorts of student services and support that you would expect with a major presence," he said.

"It may well be in the future some campuses may be better positioned as supported study centres with the key services the students require, given the nature of the study that they're undertaking."