The Tertiary Education Commission has confirmed the student achievement component (SAC) funding rates for tertiary education institutions for this year and the next. The previously estimated SAC rates for 2010 were based on an estimated 2.5 percent increase in the Consumer Price Index (CPI), but the newly confirmed SAC rates are lower, being based on only a 1.95 percent increase in the CPI.

However, NZIER is forecasting that CPI will be 5.1 percent for 2010-2011 and 2.7 percent for 2011-2012.

The SAC and Youth Guarantee rates for 2011 also have been set, following Budget 2010. The Youth Guarantee becomes a separate fund in 2011 . These have been calculated by increasing the 2010 SAC rates by 2.2 percent.

TEU national president Dr Tom Ryan says the fact that the rates don’t appear to match inflation will continue to cause significant problems for tertiary institutions, their staff, and students.

“It’s going to get harder for staff in tertiary institutions to continue to do the world class job they are doing when the government continues to lower the level of funding.  First we faced savage cuts from last year’s budget, and now the remaining pool of money is dwindling even further because of inflation .”

“Students’ education will suffer if institutions continue to make budget cuts that don’t have an academic purpose,” said Dr Ryan.