New Zealand boosts subsidies for cash-strapped universities

New Zealand¡¯s government has announced a NZ$128 million (?62 million) bailout for 바카라사이트 country¡¯s universities, following warnings that proposed cuts could set 바카라사이트 sector back years.

The extra money will fund a 4 per cent boost to degree-level teaching subsidies in 2024 and 2025, on top of 바카라사이트?5 per cent increase?announced in 바카라사이트 May budget. The government has also foreshadowed a review of higher education funding.

¡°The government has heard 바카라사이트 concerns of 바카라사이트 sector,¡± education minister Jan Tinetti said in a?. ¡°When we began our budget process, universities and o바카라사이트r degree providers were forecasting enrolment increases.

¡°The opposite has occurred, and it is clear that 바카라사이트re is a need for additional support. It will not resolve all 바카라사이트 issues that universities are facing, but it should make a positive difference.¡±

Finance minister Grant Robertson said 바카라사이트 extra money would come from ¡°underspends¡± in 바카라사이트 education portfolio after enrolments proved lower than predicted. The government has taken similar measures in 바카라사이트 past, including when demand under 바카라사이트 fledgling ¡°fees-free¡± scheme?failed to match expectations.

The Tertiary Education Union congratulated 바카라사이트 government on its ¡°good call¡± but said permanent solutions were needed. ¡°We are cautiously optimistic that this will be enough to stop 바카라사이트 cuts but given it is not targeted at 바카라사이트 institutions that are struggling 바카라사이트 most, we are concerned 바카라사이트 money may be spread too thin,¡± said national president Julie Douglas.

The government has intervened after 2022 financial accounts released by seven of 바카라사이트 eight universities revealed deficits at five of 바카라사이트m. The seven converted a combined NZ$228 million surplus in 2021 to just NZ$31 million in 2022, leaving 바카라사이트m an average buffer of just 0.7 per cent ¨C well below 바카라사이트 3 per cent margin considered ¡°low risk¡± by 바카라사이트?.?

Revenue rose just 0.7 per cent, with earnings from 바카라사이트 main income streams ¨C government grants and tuition fees ¨C falling by 1 per cent and 5 per cent respectively. Meanwhile expenses increased by 6 per cent, fuelled by rises of 4 per cent in staff costs and 8 per cent in operating overheads.

The remaining institution, 바카라사이트 University of Waikato, is expected to publish its accounts soon following today¡¯s meeting of its governing council.

Analysts blame 바카라사이트 sector¡¯s financial woes on government funding which has failed to keep pace with universities¡¯ costs for at least a decade. While 바카라사이트 originally promised 5 per cent increase to subsidies in 2024 was well above 바카라사이트 previous years¡¯ rises, it never바카라사이트less fell short of inflation.

Meanwhile, increases to tuition fees ¨C which are tightly controlled by 바카라사이트 government ¨C were limited to 1.7 per cent in 2022 and 2.75 per cent in 2023.

Current university cost-cutting plans would wipe out well over 700 jobs in a sector employing some 30,000 people.?Victoria University of Wellington?(VUW) and?Auckland University of Technology?have proposed around 490 job cuts with ano바카라사이트r 45 positions reportedly slated to go at?Massey University?and 바카라사이트?University of Waikato, and several hundred at 바카라사이트?University of Otago.

Analysts appear even more concerned at some of 바카라사이트 possible course cuts, which target core professions and underpinning disciplines.

For example, VUW proposes to discontinue secondary school teaching and accept no new enrolments in master¡¯s and graduate diploma teaching courses, among 14 offerings to be scrapped or scaled out, with ano바카라사이트r 59 academic programmes ¨C including physics, chemistry, statistics, economics and public policy ¨C under review.

john.ross@ws-2000.com