1. VSU and the Student Experience Suzi Hewlett Higher Education Group Department of Education, Science and Training Department of Education, Science and Training

2. Today’s Presentation Voluntary Student Unionism (VSU) University finances Others sources of funding Where to from here?

3. Voluntary student unionism (VSU) The Australian Government’s policy on VSU has two key objectives: – To ensure that higher education providers cannot require a student to be a member of a student association, union or guild; and – To ensure that students are not required to pay any fees to a provider or any other entity for the provision of an amenity, facility or service that is not of an academic nature, unless the person has chosen to use the amenity, facility or service.

4. VSU Legislation VSU legislation was passed by Parliament on 9 December 2005 to implement VSU. VSU provisions came into effect on 1 January 2006, and there were transitional provisions until 1 July 2006. Universities can no longer make enrolment subject to the payment of student union fees.

5. VSU Compliance Compliance with VSU provisions is a condition of grants under the Higher Education Support Act (HESA), and a condition of continued approval as a higher education provider under HESA. A Statement of Compliance was forwarded to providers for endorsement in late June. All providers have signed their Statement of Compliance. DEST proposes that ongoing compliance will be confirmed through a similar process on an annual basis. DEST will also need to respond to any complaints we may receive from students or other parties.

6. Support for Universities The Australian Government initially announced three initiatives with the introduction of voluntary student unionism: – Transition fund for maintenance and construction of sporting and recreation facilities – Assistance for universities to access appropriate financial management and accounting bodies to assist with business plans, asset and financial restructuring – An independent assessment by an organisation chosen by tender of the economic and other consequences of the legislation, no earlier than 18 months after its full implementation

7. Voluntary Student Unionism Transition Fund The VSU Transition Fund was announced by Minister Nelson in December 2005 following passing of the Higher Education Support Amendment (Abolition of Compulsory Up-front Student Union Fees) Bill 2005. To assist universities adapt to the new funding arrangements.

8. Voluntary Student Unionism Transition Fund $80 million over 3 years (2007-09) available for the construction and maintenance of sporting and recreational facilities. On 25 October 2006 the Minister called for funding proposals by 22 November 2006. Successful projects are expected to be announced by the end of this year. Two funding rounds – the second mid/late 2007.

9. VSU Small Business Programme Support for Small Businesses on Regional University Campuses Programme $10 million over four years to assist higher education providers or groups of providers to encourage and support small businesses to establish services for students on regional campuses

10. VSU Small Business Programme Timetable Applications opened on 25 October 2006 Applications closed on 22 November 2006 Successful applicants expected to be announced in December 2006 Funding for projects to commence in January 2007

11. The Higher Education Sector in 2005 Financial overview Total Revenue:$13.9 billion Operating Result:$0.8 billion Net Assets:$25.7 billion Cash and Investments:$7.0 billion Employee Liabilities:$5.8 billion

12. Total Sector Revenue (Higher Education Only)

13. Revenue Sources 2005 (Higher Education Only) Australian Government Revenue includes Australian Government Grants and loan programmes

14. Expenses by Category 2005 (Higher Education Only)

15. University Surpluses Universities are in a strong financial position 36 Universities reported a surplus Only 2 reported a deficit – UNE a small deficit – Newcastle due to a substantial restructure

16. Other sources of funding Workplace Productivity Programme Collaboration and Structural Reform Fund Capital Development Pool Learning and Teaching Performance Fund Equity programmes Research programmes Other Portfolios

17. Workplace Productivity Programme Workplace Productivity Programme (WPP) Commenced 2006. $83 million available between 2006 and 2008 to encourage universities’ workplace reform which strengthens their capability to manage and implement workplace change Round 1 priority - review or reform of financial and operational arrangements 94 applications received; 48 approved; $57 million across 31 universities

18. Workplace Productivity Programme Workplace Productivity Programme (WPP) (cont.) Projects funded in round 1 - general categories:  Management systems/service delivery 19 (40%)  Financial management 16 (33%)  Restructuring/rationalisation 7 (15%)  Staff performance programmes 4 (8%)  VSU impact reviews 2 (4%) A second round of the WPP will be conducted in 2007 and DEST is inviting feedback from the sector on the funding priority for round 2.

19. Workplace Productivity Programme Workplace Productivity Programme (WPP) and VSU Two of the projects approved in round one are independent assessments of the economic and other consequences of implementing VSU. – University of Sydney – University of Ballarat

20. Collaboration and Structural Reform Fund (CASR) $47m to be allocated in 2005-2009 2006 funding round – 125 Expressions of Interest were received – Full applications have been sought for 20 of these projects Successful projects to be announced before the end of the year

21. Capital Development Pool (CDP) In place since 1994 to support capital projects that meet special criteria. Funds are available on a competitive basis.

22. Capital Development Pool (CDP) – funding increase The 2006/07 Budget provides $95.5 million over 4 years i.e. 50% increase in base funding, commencing in 2007. In 2006 $22.9 million will be allocated for funding projects in 2007, $23.3 million for projects in 2008 and $47.6 million for projects in 2009. This is a total of $93.8 million, more than double the amount allocated in the 2005.

23. Capital Development Pool – Funding Allocations 2006 ($m) 2006-07 Budget measure 2007 ($m) 2008 ($m)* 2009 ($m)* 2010 ($m)* 44.9New additional funding 22.923.323.824.2 Existing base funding 45.846.747.648.5 Total funding ** 68.770.071.772.7

24. Learning and Teaching Performance Fund Announced in May 2003 as part of Our Universities: Backing Australia’s Future: – “to reward those institutions that best demonstrate excellence in learning and teaching” – $251 million over 2006 to 2008

25. Learning and Teaching Performance Fund - rationale Promote overall quality of the sector. Place excellence in learning and teaching alongside research excellence as a valued contribution to Australia’s knowledge systems.

26. Higher Education Disability Support Program The Disability Support Program aims to remove barriers to access for students with physical and psychological disabilities. In 2006 $6.6 million will be distributed between universities. The Disability Support Program includes: – Additional Support for Students with Disabilities – Regional Disability Liaison Officers

27. Higher Education Disability Additional Support for Students with Disabilities Reimburses higher education providers for a proportion of costs incurred in providing educational support and equipment to students with high cost needs. $4 million allocated in 2006. – In 2006, providers met the first $500 of each student’s needs with respect to educational support. – In 2006 eligible equipment costs were fully reimbursed by DEST.

28. Higher Education Disability Regional Disability Liaison Officers – Aims to improve access to post-secondary education for students with disabilities by facilitating their transition from school to study, whether higher education or vocational education and training, and from study to work. – Annual grant to 10 host institutions. – In 2006 each host organisation received $94,228.

29. Changing domestic student attendance patterns 1996-2005

30. Where to from here? – Monitoring VSU legislation – compliance annually; review 2008/09 – Trends/concerns across sector – anecdotal – Impact for the future of student services – response to changing student profile – Next steps for the Australian government – response to the review

31. Thank you Suzi Hewlett Higher Education Group Department of Education, Science and Training Department of Education, Science and Training