ATEM 2008 Regional Conference (NSW/ACT)‘Education Revolution & Higher Education Directions’

Dr Caroline Perkins A/g Group Manager, Higher Education Group

24 July 2008

IssuesEducation Revolution

Bradley Review of Higher Education

2008-09 Budget:

Education Investment Fund $500 million renewal funding Doubling of Commonwealth Scholarships Phasing out domestic undergraduate fee paying places Additional places and capital for universities Maths and science initiative

Other Current Issues

Current Government Policy Agenda• The White Paper Australia’s Universities: Building

our Future in the World was released in July 2006 and outlined the ALP’s policy framework for higher education

• Investing in Our Future: An Education Revolution outlines the Government’s education policy agenda

Education Revolution• Through the Education Revolution the

Government aims to provide universal access to a high quality education from the earliest age, world-class teaching and learning in schools, and effective training and ongoing learning opportunities in universities and the workplace.

The Bradley Review• An expert panel, chaired by Emeritus Professor

Denise Bradley AC, has been established to examine and advise the Government on how to progress a number of key objectives for higher education.

• The Terms of Reference and membership of the Panel can be found at: www.dest.gov.au/HEreview.

• Submissions due by 31 July 2008.

The Bradley Review (cont’d)

• Themes: Diverse high performing institutions with a global focus; Productivity and participation; Effective and efficient investment; Underpinning social inclusion through access and

opportunity; Enhanced quality and high standards; A broad tertiary education and training sector; and Policy linkages.

• The Panel released a discussion paper at the beginning of June 2008 followed by stakeholder consultations to conclude at the end of July 2008.

2008 – 09 Budget

• $11 billion Education Investment Fund to transform higher education and vocational education training.

• $5 billion from the surplus in addition to the $6 billion from the HEEF.

• Priorities will be capital expenditure and renewal and refurbishment in universities, vocational institutions and research facilities.

Education Investment Fund (EIF)

Education Investment Fund (EIF)• Unlike the HEEF, which allowed only for the interest

earned to be spent, there will be no cap on yearly allocations from the EIF.

• Decisions about annual disbursements from the EIF will occur through the annual appropriation process.

• There will be no disbursements from the EIF in the 08-09 financial year to ensure allocations align with the recommendations of the Higher Education Review and priorities of universities and vocational education and training sectors.

$500 Million for Better Universities – Renewal Funding

• One-off capital grants paid by 30 June 2008

• All Table A and Table B providers

• Funding agreements with the Commonwealth – each provider will determine the projects to be undertaken, consistent with its individual mission and the following priority areas: information and communications technology laboratories libraries and student study spaces teaching spaces student amenities

Better Universities – Renewal Funding

• $490 million allocated by formula: 70% on shares of total domestic student load

(reflecting overall institution size – using latest available published full year data – 2006).

30% on shares of 2008 Institutional Grants Scheme funding (reflecting research activity, using previously reported data).

• $10 million special payment for ANU reflecting unique mix of teaching and research and lower overall benefit from former Government’s supplementation of grants for teaching (CGS increases for HEWRRs and Governance Protocols).

The Scholarships for a Competitive Future measure will: double the number of Commonwealth Scholarships for

undergraduate students to go to university from 44,000 to 88,000 by 2012 at a cost of $238.6m.

Two new scholarship categories will be introduced from 2009: National Priority Scholarships, targeting undergraduate

students enrolling in priority disciplines such as nursing, teaching, medicine, dentistry, allied health, science, engineering and mathematics; and

National Accommodation Scholarships for students relocating interstate to study specialist courses not available near their home.

Scholarships for a Competitive Future

Phasing out domestic undergraduate fee paying places

• Phase out from beginning of 2009 Current students not affected.

• $249 million over 4 years for replacement Commonwealth supported places,

includes HECS-HELP effect, 11,000 by 2011 (funding for places will be ongoing).

and scope for some transitional assistance in 2009 to support the new places.

Additional nursing places Single cohort of 90 places commencing second

semester 2008 1,170 ongoing places commencing in 2009 $99.5 million over 4 years

Additional early childhood education places 500 new places in each of 2009, 2010 and 2011

(1,500 extra commencing places by 2011) $53.9 million over 4 years

Maths and Science Funding of around $560 million over 4 years has been

allocated to support this initiative. Maximum annual student contribution amount reduced

from $7,412 to the lowest ‘national priority’ rate of $4,162 (per EFTSL) for commencing students.

Universities will be compensated for lost revenue. HELP remission of up to $1,500 annually for a period of 5

years. For students graduating with maths or science undergraduate degrees from the end of 2008, if they work in related occupations, including teaching of these subjects in secondary school.

Other current issues

Institutional Assessment Framework• The Australian Government currently monitors university

sustainability through the Institutional Assessment Framework (IAF).

• The IAF process involves three key elements: the IAF Information Collection (IAFIC) the IAF portfolio biennial visits to most institutions

• The Deputy Prime Minister has approved the continuation of the IAF process for 2008.

• New accountability arrangements will be part of a move to mission-based funding compacts from 2010.

Mission-based funding compacts The Government is committed to the introduction

of mission-based compacts to recognise the breadth of university activities and the differences between institutions.

A more flexible approach to university funding will allow universities to develop their strengths and facilitate a more diverse higher education sector.

Consultation with the sector on arrangements for compacts will take place this year. The first compacts will be negotiated with universities in 2009 and will take effect from 2010.

DEEWR and DIISR will work together on compact consultations and policy development.

The next funding rounds…Learning and Teaching Performance Fund

$74.4 million will be allocated in 2009.

Arrangements for the next round of the Fund will be announced in the coming weeks.

Capital Development Pool (CDP) Programme

The 2008 CDP round will run as per normal later in the year and decisions by year end.

This will provide HEPs with time to review their priorities in light of the $500m Renewal Funding announced in the Budget.

What’s currently happening on…Legislation• The Bill to remove the HEWRRs

and the National Governance Protocols requirements is still being considered by Parliament.

• The legislative amendments required to implement the Government’s election commitments will be introduced during this sitting period.

Philanthropy• BIHECC has just released a report

into philanthropy in higher education in Australia. The government is currently considering the report.

MCEETYA• Inquiry into a national accreditation

body – report and recommendations to MCEETYA later in 2008.

• University auditing and reporting – JCHE developing questions to identify issues.

Carrick Institute• The Deputy Prime Minister determined that the

Carrick Institute for Learning and Teaching Higher Education should change its name to the ‘Australian Learning and Teaching Council’.

• The Government has reduced the Carrick Institute’s funding for 2008 by $5.4 million.

• In future years, savings of $10.7 million will be drawn from the Learning and Teaching Performance Fund.

Demand for University

New DEEWR Undergraduate Applications, Offers and Acceptance Report, 2008

Differs from Universities Australia Report.New DEEWR Report includes:• Analysis beyond that of Eligible Applicants• Analysis beyond that of Eligible Applicants • Acceptance rate calculated as a percentage of those

that received an offer rather than as a percentage of eligible applicants

• Analysis of trends in key fields identified as areas of skill shortage

• A review of offer and acceptance rates in relation to key applicant demographics

• Expanded information on factors affecting current and future demand

Application, Offers and Acceptance Trends, 2001 to 2008

Eligible Applicants

Eligible Receiving an Offer

Eligible Accepting their Offer

100,000

120,000

140,000

160,000

180,000

200,000

220,000

240,000

2001 2002 2003 2004 2005 2006 2007 2008

Year

Elig

ible

App

lican

ts

(#)

Application and Offer Trends for UAC, 2001 to 2008

25,000

35,000

45,000

55,000

65,000

75,000

2001 2002 2003 2004 2005 2006 2007 2008

Year

Elig

ible

ap

plic

ants

Eligible applicants

Eligible receiving an offer

Estimated Unmet Demand

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

18.0%

2001 2002 2003 2004 2005 2006 2007 2008

Year

Perc

enta

ge o

f elig

ible

app

lican

ts

National

UAC

Eligible Applicants Receiving a First Preference, compared to the State Offer Rate

VICNSW/ACT QLD SA & NT WA TAS TOTAL AUSTRALIA

0

10

20

30

40

50

60

70

80

90

100

State

Per

cent

age

Offer Rate

First Preference Offer

Offer Rates by Basis of Admission,National compared to UAC 2008

0.0%

20.0%

40.0%

60.0%

80.0%

100.0%

120.0%

Eligible Year 12 (home state) Eligible Year 12 (interstate) Non-Year 12

Per

cent

age

NationalUAC

Trends in Areas of Skills ShortageAnalysis was conducted in nine field of educations aligned with disciplines identified as supplying areas of skill shortage. Below are examples of four key areas:

EducationEligible

Applicants

Offers

Acceptances

7,000

12,000

17,000

22,000

27,000

2001 2002 2003 2004 2005 2006 2007 2008

NursingEligible

ApplicantsOffers

Acceptances

5,000

7,000

9,000

11,000

13,000

15,000

17,000

2001 2002 2003 2004 2005 2006 2007 2008

Medicine

Eligible Applicants

Offers

Acceptances0

2,000

4,000

6,000

8,000

10,000

12,000

2001 2002 2003 2004 2005 2006 2007 2008

Dentistry

Eligible Applicants

Offers

Acceptances0

500

1,000

1,500

2,000

2,500

3,000

2001 2002 2003 2004 2005 2006 2007 2008

Trends in Areas of Skills ShortageAnalysis was conducted in nine field of educations aligned with disciplines identified as supplying areas of skill shortage.Below are examples of four key areas:

Engineering

Eligible Applicants

Offers

Acceptances

7,0008,0009,000

10,00011,00012,00013,00014,00015,000

2001 2002 2003 2004 2005 2006 2007 2008

Natural and Physical Sciences

Eligible Applicants

Offers

Acceptances

10,000

11,00012,000

13,00014,000

15,000

16,00017,000

18,000

2001 2002 2003 2004 2005 2006 2007 2008

IT

Eligible Applicants

Offers

Acceptances2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

2001 2002 2003 2004 2005 2006 2007 2008

Agriculture

Eligible Applicants

Offers

Acceptances

2,000

2,500

3,000

3,500

4,000

4,500

5,000

5,500

2001 2002 2003 2004 2005 2006 2007 2008

Future Undergraduate Applications, Offers and Acceptance ReportsFuture improvements:• From 2009, the report will draw

upon the additional data that will come through the National Data Collection of Undergraduate Applications and Offers allowing for even greater analysis of the available data.

• From 2010, information on the number of direct applications to Universities will also be available.

Educational Participation of “Applied for Uni but no offer” group

Year 12 Uni applicants who

applied but received no

offer

2001 2003

5% Apprenticeship

11% Traineeship

6% VET Certificate

24% VET Diploma

55% No Study

Source: LSAY Research Report no. 46 Unmet Demand? Characteristics and Activities of University Applicants Not Offered a Place

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

lowestquartile

secondquartile

thirdquartile

highestquartile

Year 9 literacy and numeracy attainment level

percentage of cohort achieving attainment level

VET

higher education

no post school study

Source: LSAY Forthcoming research report no. 52 The VET Pathways taken by School Leavers

A quarter of students in the highest (Y9) achievement quartile go on to VET

64% of year 12 completers go straight on to tertiary education

Source: ABS Survey of Education and Work (Cat No 6227.0)

Higher Education

VET

No education but in Employment

0.0

20.0

40.0

60.0

20062005200420032002200120001999199819971996

Pe

rce

nta

ge

of

Ye

ar

12

co

mp

lete

rs (

%)

Participation in tertiary education by age 24, 2005

49

32

4944

87

75

13

0

10

20

30

40

50

60

70

80

90

100

enrolled completed no post school education

higher educationvocational education and training (including apprenticeships)tertiary

Source: LSAY Cohort Report – The 1995 LSAY Year 9 cohort: 24 year olds in 2005, March 2007

Domestic studentsHigher education enrolments, 1949 to present

0

100,000

200,000

300,000

400,000

500,000

600,000

700,000

800,000

1949 (a)

1956

1963

1970

1977

1984

1991

1998

2003

31,753 (1949)

110,250 includes colleges ofadvanced education

(1965)

221,281 includes teacher colleges(1973)

684,975 (2001)

726,196 (2001)

733,352 includes 43 higher education institutions listed in HESA and 46 private higher education providers (2006)

The future school leaver population

Source : ABS 2006, Population Projections, Cat. no. 3222.0

Thank You

Questions