Unfunded students create $100 million shortfall

Posted By TEU on Nov 3, 2011 |


Tertiary Update vol 14 No 41

A government decision to underestimate the number of students who study each year cost tertiary institutions $100 million for each of 2009 and 2010 according to TEU national president Dr Sandra Grey.

TEU released the third of its election graphs on the state of tertiary education this week. It shows that for the last two years over 10,000 full time equivalent students in study were not funded by the government.

“What that means,” said Dr Grey “is that institutions need to cut costs in other places to pay for those students. The result is higher fees, larger student: staff ratios and less money available for pastoral care and support.”

In 2009, tertiary institutions taught 246,000 full time equivalent students. Unsurprisingly the next year there were 4000 more full time equivalent students due to students passing from secondary into tertiary education, and larger numbers of people wanting to study because of growing unemployment. Despite the increase in numbers of students, the government chose to fund 6000 fewer student places in 2010 making a shortfall in funding of 10,000 students for the second year running.

Also in Tertiary Update this week:

  1. Community education wants another look
  2. Educators keep ahead of mean wage rises
  3. TEU advocates new plan at Aoraki
  4. New Zealand doesn’t have to be a low wage country

Other news

Urgent support needed for locked out workers at CMP Meatworks Rangatikei. These 111 workers have now been locked out for 10 days as the boss tries to force them to agree to an up to 30 percent pay cut. The union members are prepared to bargain but the current offer is unjustified and unaffordable. You can donate food to NZNO in Palmerston North, or donate money to the ‘Disputes Fund’ account number: 38-9007-0894028-08 – CTU

TEU members at Te Tai Poutini and Nelson Marlborough Institute of Technology will both be voting whether to ratify new collective agreements next week. TEU also had a formal facilitation with the University of Auckland over the on-going dispute about the academics’ collective agreement. The recommendation from facilitation, and details of the two ratification votes, will be available shortly.

There is official confirmation that total student loan debt now exceeds $12 billion, highlighting just what a liability the Student Loan Scheme has become for the country. “It is ironic that in accounting terms the annual report refers to the scheme as a significant financial asset, when in reality this $12 billion debt manifests itself as a liability on individuals, the country, and our economy,” – David Do, Co-President of NZUSA.

Canterbury University is pleading for at least another $150 million from the Government as it faces losing almost 20,000 students and $346m in revenue in the next eight years – The Press

Six industry training organisations have been given until February to improve their performance or face losing all taxpayer funding – New Zealand Herald

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