1. TEM Conference Sydney 2006 1 AUCKLAND UNIVERSITY OF TECHNOLOGY

2. TEM Conference Sydney 2006 2 How Do Tertiary Funding Reforms Make a Difference? Presented by Maureen Reid Head of Planning & Projects Vice Chancellor’s Department

3. TEM Conference Sydney 2006 3 New Zealand Tertiary Sub-sectors Universities/Colleges of Education Institutes of Technology/Polytechnics (ITP) Wānanga Private Training Establishments (PTE) Industry Training Organisations

4. TEM Conference Sydney 2006 4 New Zealand Context Previous driver - participation “bums on seats” model

5. TEM Conference Sydney 2006 5 New Zealand Context 20002004Growth Non- degree 38,00080,00042,000 Bachelor’s22,21723,109892 Course Completion Domestic EFTS (Dye, S. 4 April 2006)

6. TEM Conference Sydney 2006 6 New Zealand Context Qualification Completion Rate (after 6 years) 46%Bachelor’s Degree 30 to 40%Sub-degree 50 to 60%Postgraduate (cf 45%USA) - Vincent Tinto (Scott, D. 2006)

7. TEM Conference Sydney 2006 7 Course & Qualification Completion Rate Estimates (2004) Sub-sectorCourse completion rate estimate Qualification completion rate estimate Universities81%46% Institutes of Technology & Polytechnics63%30% Colleges of Education84%46% Wānanga71%42% Private Training Establishments63%41% Total70%39% The qualification completion rate refers to the % of students starting a qualification in 2000 who had completed a qualification by the end of 2004. (Scott, D. 2006)

8. TEM Conference Sydney 2006 8 New Zealand Context Te Wānanga O Aotearoa $ 5M in 2000 $239M in 2004 CPIT $13.8M for COOL IT course (Media Release 23 December 2004)

9. TEM Conference Sydney 2006 9 New Zealand Context Limits on Growth Shift to System capability Student success A differentiated sector (STEP 2005-07)

10. TEM Conference Sydney 2006 10 New Zealand Context 19912002 Government Grants % Operating Revenue 73%42% Tuition Fees14%29% Revenue Other Sources13%29% (Scott & Scott 2004 p1)

11. TEM Conference Sydney 2006 11 International Context - Australia Funding sources for Australian Universities, by Percentage

12. TEM Conference Sydney 2006 12 Tertiary Funding New Zealand Reforms Commence 2008 Changes to planning, funding, quality and monitoring Three-year funding agreement

13. TEM Conference Sydney 2006 13 Tertiary Funding New Zealand Reforms Government funding to support teaching and learning Learner Achievement Component TEO Component Nature of Programme Volume of teaching and learning Nature of the learner Core Component Costs associated with a TEO’s role and distinctive contribution Strategic Fund Realigning provision Promoting and supporting innovation Performance element to incentivise student success Pol Min (06) 13/5 p10

14. TEM Conference Sydney 2006 14 Ministers guided by: i.Statement of Tertiary Education Priorities (STEP); ii.relative performance of the different sub-sectors in achieving educational outcomes; iii.need to maintain and build capability within each sub-sector; iv.pattern of skill and learning need across the sector – of employers, students and communities; v.relative cost of different provision. Cabinet Policy Committee, POL (06) 13/5, p2

15. TEM Conference Sydney 2006 15 Ministers also Set funding targets on the basis of sub-sector along with tolerance bands within which TEC can operate Determine funding within each sub-sector for the two main components (Learner Achievement and TEO Components) Funding up to 3 years subject to provider performance and delivery against the Profile (plan)

16. TEM Conference Sydney 2006 16 Learner Achievement Component Government funding of course delivery to students General/teaching staff costs Operating costs Course development Student support Buildings/equipment Capability development

17. TEM Conference Sydney 2006 17 Learner Achievement Component Nature of the programme Volume of teaching and learning Nature of the learner

18. TEM Conference Sydney 2006 18 TEO Component Government contribution to costs that support each provider to focus on its specific and distinctive role in the tertiary network

19. TEM Conference Sydney 2006 19 University Role develop knowledge that informs undergraduate degree and postgraduate teaching undertake research in a wide range of fields provide pathways to higher levels of tertiary education develop international links, standards or scholarship and credibility

20. TEM Conference Sydney 2006 20 TEO Component Core Component Strategic Fund

21. TEM Conference Sydney 2006 21 Issues/Implications Learner Achievement/TEO Component Split Outcome Measures Funding Timeframe Nature of Programme Nature of Learner Transparency Distinctive Contribution

22. TEM Conference Sydney 2006 22 AUCKLAND UNIVERSITY OF TECHNOLOGY