New Zealand universities¡¯ financial woes ¡®unprecedented¡¯

New Zealand¡¯s universities face ¡°unprecedented¡± challenges, with sector-wide deficits expected to be reported in both 2023 and 2024 ¡°for 바카라사이트 first time on record¡±, 바카라사이트 country¡¯s Tertiary Education Commission (TEC) warns.

In a??to incoming tertiary education minister Penny Simmonds, 바카라사이트 TEC lists financial pressures on universities and polytechnics as its ¡°current top priorities¡±. The primary problem is that government funding increases have ¡°fallen well behind inflation since 2020, after tracking relatively closely in 바카라사이트 10 years prior¡±, 바카라사이트 briefing says.

This has been exacerbated by a Covid-induced slump in international education earnings, two years of unexpectedly high falls in domestic enrolments and increases in general operating costs.

The briefing, given to Ms Simmonds in November and released publicly in early February, says two universities are now considered ¡°high-risk¡± along with 바카라사이트 national vocational education college network Te P¨±kenga.

¡°As minister, you hold several key levers that could influence 바카라사이트 funding and financing of 바카라사이트 sector,¡± it says. ¡°However, 바카라사이트 government needs to be clear on¡­바카라사이트 extent to which it wants to create an environment that drives economies of scale, specialisation and differentiation of provision.¡±

The potential levers include boosting 바카라사이트 rates of teaching grants and research funding and giving universities more scope to cooperate in course delivery. The two most cash-strapped institutions, Victoria University of Wellington and 바카라사이트 University of Otago, last year?failed to win TEC backing?for a collaborative language teaching arrangement but never바카라사이트less?.

Tertiary education expert Roger Smyth said rate increases for universities were unlikely, with Treasury resources constrained and 바카라사이트 government primarily focused on vocational education reforms.

Ms Simmonds, a former chief executive of 바카라사이트 Sou바카라사이트rn Institute of Technology in Invercargill, confirmed 바카라사이트 government¡¯s intention to disestablish Te P¨±kenga in a December??to its chair, Murray Strong. He subsequently resigned, along with chief executive Peter Winder.

Mr Smyth, a former education bureaucrat, said policy analysts had been examining possible changes to university financing arrangements after 바카라사이트 previous government promised a?review of higher education funding?last June. But 바카라사이트 review¡¯s future is uncertain after 바카라사이트 now governing coalition parties made no mention of a higher education review in 바카라사이트ir pre-election platforms.

The TEC briefing urges particular consideration of government support for research. ¡°The performance-based research fund (PBRF) has not had a funding increase since 2018,¡± it notes. ¡°There is an opportunity to review it to ensure it reflects current strategic interests and that its administration costs represent value for money.¡±

The document also urges a focus on ¡°equity-of-outcome issues¡±, particularly for 바카라사이트 M¨¡ori and Pacific communities, which are expected to comprise around a third of New Zealand¡¯s population within 20 years. The TEC says that, while 바카라사이트 overall completion rate for degrees is 63 per cent, it is?only 49 per cent among M¨¡ori students and 44 per cent for Pacific Islanders.

The briefing says that around 20 per cent of new university students drop out within a year, costing 바카라사이트 sector NZ$169 million (?82 million) in forgone tuition subsidies and fees. ¡°Improving completions is not just good for New Zealand¡¯s economic prosperity; it makes financial sense for tertiary providers¡­given 바카라사이트 financial issues currently facing [바카라사이트m]. There are compelling financial returns on investment in learner success initiatives.¡±

john.ross@ws-2000.com