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Education Forum, 06 May 2003

Budgeting for education success

The Australian Budget on 13 May 2003 announced many reforms for the tertiary education sector that place it on a more market-based footing.

The Australian Department of Education, Science and Training website provides all the details on the proposed Australian higher education reforms, including the background reports prepared as part of the Crossroads review process. It can be accessed here: http://www.backingaustraliasfuture.gov.au/

The Howard Government Budget provides a record AU$69.8 billion over the next four years for education, training and science. Funding in 2003-04 totals more than AU$15.8 billion, an increase of 6.1% over the amount available for these sectors in the previous year. Budget information at a glance highlights the main spending.

The website of the Australian Minister for Education Science and Training, Brendan Nelson, has a page with links to information on all the Australian Budget education initiatives.

The Australiansays fees could increase by up to a third for students beginning undergraduate degrees in 2005, and twice as many full-fee places will be available.

The Agereports that Dr Nelson wants universities to be run in a business-like fashion.

The Sydney Morning Heraldreports that an extra $404 million in funding is linked to a ban on strikes.

Students and business groups react to the Budget.

The Australian Labor Party says it will join with the minor parties to block changes to higher education announced in the Budget.

Australian vice-chancellors have commended the government on the reforms, saying they will help with inadequate resources and previously inflexible policies.

An Education Forum press release says the Australian initiatives could be a pointer for New Zealand tertiary education.

"The Australian higher education reforms are a timely reminder that New Zealand's policy framework needs to be 'world-class'. While the government here has introduced some useful tertiary reforms, other changes it has made are increasingly at odds with global trends and world best-practice," Education Forum policy advisor Norman LaRocque says.

A report from Mr LaRocque released earlier this year discusses who should pay for tertiary education in New Zealand. The report argues that students, rather than taxpayers, should foot more of the bill for tertiary education.

"If it is unfair for students to pay more of the cost, as some argue, then it is even more unfair to ask taxpayers to foot the bill given that students are, on average, from wealthier households than taxpayers generally and that students enjoy the bulk of the benefits from tertiary education, including higher lifetime earnings," Mr LaRocque has said.

Education highlights from the Australian Budget

Up to $1.5 billion injection of funds over five years, with most of the money coming in the last year or two; $152 million rise next financial year
Universities able to charge increased fees, up to 30 per cent higher than HECS
From 2005, students will not have to repay HECS loan until they begin earning $30,000 a year
Universities to increase the number of students paying up-front from 25 per cent to 50 per cent of each course
HECS to stay; joined by two new loan schemes
Fee-paying students eligible for loan of up to $50,000, repaid at 3.5 per cent above the inflation rate for a maximum of 10 years
More places to train nurses and teachers in public universities, with universities able to charge lower HECS fees
Private tertiary institutions, such as Avondale College in NSW, allowed to access public funds for nurse and teacher training and for indigenous students; 1400 places available
$3.6 billion over three years for a new training agreement with states
Workplace reform, with staff encouraged to take up individual workplace agreements and the right to industrial action restricted
More money, from 2006, for excellent academics
Overhaul of university governing bodies
From 2004, a new community scholarship programme to help disadvantaged students with accommodation and other living expenses
New computer system to monitor students' academic career and loan history
Taskforce to examine closer working ties between universities and publicly funded research groups such as the CSIRO
Pressure to make universities choose between research and teaching institutions

Source: Sydney Morning Herald.

An Education Forum feature looks at a report, released in February by the Centre for Independent Studies, that calls for tertiary education reform in Australia.

Report author Andrew Norton has said that Australian universities face serious financial and educational difficulties if reform is not introduced and that the best reform would be to let universities set their own fees to get the income needed to keep quality up.