August 3, 2017

Universities are not rolling in gold: Average funding per student and other funding facts

The Government case that universities can sustain further reductions in revenue rests on false assertions about the financial robustness of universities and over egged claims about the value of Government funding over the past decade and its additional expenditure over the coming four years.

Far from rolling in rivers of gold, IRU Members assess they would:

  • lose $43 million a year by 2021 through the cut to CGS funding;
  • have at risk $79 million a year by 2021 through the performance proposal; and
  • have at risk $74 million a year from loss of New Zealander and Permanent Resident  students.

IRU Members oppose the package and have provided additional analysis to the Senate Education Committee that is considering the impact of the Higher Education Support Legislation Amendment Bill 2017.  The major elements of focus are:

  1. An analysis of university financial positions, 2010 to 2015, which clearly shows the surplus of revenue over expenditure, has fallen from 13% to 5% as universities have reworked expenditures to focus on ensuring their future sustainability. It reflects the lack of Commonwealth programs to support university capital needs.
  2. A tracking of where the additional Commonwealth expenditure is going.
  3. An analysis of the average funding per Commonwealth funding student that challenges the Government assertion that average funding has risen in real terms.
  4. A reminder that in England, significant increases in student payment have also significantly increased revenue per student.

Read more attached or contact Conor King 0434 601 691