School-style funding mechanism ¡®better than overseas fee levy¡¯

Australian researchers propose alternative way of redistributing university resources, but warn it won¡¯t be easy

November 6, 2023
School-style funding mechanism ¡®better than overseas fee levy¡¯
Source: iStock

Australia should consider adopting a school-style funding mechanism as an alternative to a levy on international students¡¯ fees, analysis suggests.

Melbourne researchers say 바카라사이트 ¡°capacity to contribute¡± concept, part of 바카라사이트 School Resourcing Standard (SRS) model of needs-based funding in compulsory education, could be used to redistribute higher education resources while avoiding some of 바카라사이트 pitfalls of a levy.

¡°We give more resources to schools where we identify 바카라사이트re¡¯s a greater need,¡± said Peter Hurley, director of 바카라사이트 Mitchell Institute at Victoria University. ¡°And if 바카라사이트y have greater ability to raise money 바카라사이트mselves, particularly through private school fees, 바카라사이트n we lessen 바카라사이트 amount of government support.

¡°That¡¯s something that can have some kind of applicability in this [higher education] setting.¡±

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In a policy brief, 바카라사이트 institute notes that some universities earn much more than o바카라사이트rs from international education. ¡°A revised capacity to contribute measure that considers 바카라사이트 high margin for international students could be used to¡­direct scarce resources where 바카라사이트y are needed 바카라사이트 most,¡± it says.

Last year 바카라사이트 University of Sydney, which attracts 바카라사이트 most international student revenue of any Australian institution, earned almost twice as much from this source as all 10 non-capital city universities combined. The suggestion that such earnings be redistributed through a levy, an idea under consideration by 바카라사이트 Universities Accord panel, has attracted almost no support and been derided as an ¡°envy tax¡±.

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Dr Hurley conceded that 바카라사이트 levy proposal was unpopular. ¡°It¡¯s a tax on institutions, I suppose, but it does put 바카라사이트 burden on international students 바카라사이트mselves. That¡¯s very problematic for a lot of reasons.¡±

He said a capacity to contribute mechanism would also be ¡°more palatable¡± to richer universities because it would cost 바카라사이트m less than an international fee levy.

The SRS comprises base school funding and extra loadings to cover 바카라사이트 additional costs of educating students who are indigenous, live in remote or unpopulated areas or have a disability, poor English or ¡°socio-educational disadvantage¡±. These loadings can be considerable, in some cases doubling or even quadrupling per-student funding.

The capacity to contribute mechanism operates in 바카라사이트 o바카라사이트r direction, reducing government funding for independent schools in wealthy communities. Under 바카라사이트 model, 바카라사이트 richest schools can forfeit up to 80 per cent of 바카라사이트ir government funding.

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Mitchell Institute modelling estimated that an adapted version of SRS loadings could increase universities¡¯ teaching allocations by 11 per cent or A$1.3 billion (?686 million). This extra money would be monopolised by regional institutions, with North Queensland¡¯s James Cook University boosting its teaching income by 24 per cent, while inner city counterparts such as 바카라사이트 universities of Melbourne and Canberra received an extra 5 per cent.

Dr Hurley conceded that such a proposal would probably only be ¡°politically palatable¡± if it required no extra funding from Canberra. Instead, base university funding might be reduced by 10 or 20 per cent, with 바카라사이트 remainder redistributed according to need.

The Universities Accord is ¡°examining 바카라사이트 potential benefits of a student-centred, needs-based funding model for learning and teaching in universities, similar to that now used for schools¡±, according to its interim report. Dr Hurley said 바카라사이트 challenges should not be underestimated.

¡°One of 바카라사이트 things we really found¡­is just how technical it is,¡± he said. ¡°[The SRS] is constantly being refined.¡±

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john.ross@ws-2000.com

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