Student Achievement Component – Access in Priority Areas
 

Operating funding

• 2008/09 $13.412m
• 2009/10 $16.894m
• 2010/11 $16.171m
• 2011/12 $10.111m

Four Year Total $56.588m
 

[This initiative is expected to incur operating expenditure of $11.366 million and capital expenditure of $15.478 million over four years in Votes Social Development and Revenue due to forecast increases in Student Loans and Allowances uptake.]

The government is creating opportunities for more young people to achieve in tertiary education and to gain the skills and qualifications they can use in their careers.
 

Funding provides for increased enrolments at universities and Institutes of Technology and Polytechnics in priority areas: young people enrolling in degrees, and higher participation in trade and technical qualifications.
 

The level of additional funding is based on demographic information and projections of tertiary participation rates.

Investing through the Tertiary Education Organisation Component
 

Operating funding

• 2008/09 $5.407m
• 2009/10 $17.116m
• 2010/11 $24.643m
• 2011/12 $26.981m

Four Year Total $74.147m

This initiative provides funding for increases to the Public Provider Base Grant including additional funding for Equity Loading.  Funding will be used to provide support for tertiary education institutions to focus on their core roles and distinctive contributions, and to assist Māori and Pacific students, and students with disabilities succeed in tertiary education.

Increasing the Performance Based Research Fund

Operating funding

• 2007/08 $4.311m

• 2008/09 $7.221m
• 2009/10 $9.183m
• 2010/11 $13.000m
• 2011/12 $13.000m

Four Year Total $42.404m

This initiative increases the Performance-Based Research Fund (PBRF) pool size to $250 million by 2010 to support increased quality research and research-based teaching and learning, and to provide incentives for improving research quality in the tertiary sector.
 

This initiative provides for the transition between automatic and discretionary participation adjustments to the PBRF pool. 

Priorities for Focus: Strengthening Universities
 

Operating funding

• 2008/09 $15.000m
• 2009/10 $15.000m
• 2010/11 $15.000m
• 2011/12 $15.000m

Four Year Total $60.000m

This initiative provides funding to support universities’ distinctive contributions and ensures New Zealand will further develop high quality academic education and research that leads to the ongoing development of skills and knowledge.
 

Final details on how the funding will be used will be determined following discussions in the Universities Tripartite Forum.

Skills Strategy - Literacy, Language and Numeracy Strategy
 

Operating funding

• 2008/09 $27.253m
• 2009/10 $36.253m
• 2010/11 $45.498m
• 2011/12 $47.498m

Four Year Total $156.502m
 

[A further $9.040 million over four years has been appropriated through Vote Employment to support demand-side LLN initiatives.]

Government has committed to a comprehensive programme designed to improve the literacy, language and numeracy skills of New Zealanders.
 

Previous budgets have established pilots, small funding pools and initiatives to fund literacy, language and numeracy.  This package provides a full-scale co-ordinated approach that builds on the findings of those pilots.
 

The government will invest in those already at work, or preparing for work, to ensure that our businesses increase their productivity and our workers increase their skills.
 

This initiative supports the New Zealand Skills Strategy.  Government agencies will work together with the education sector, business and unions to implement a comprehensive programme designed to improve the literacy, language and numeracy skills of New Zealanders.

Skills Strategy Programme Office
 

Operating funding

• 2008/09 $1.240m
• 2009/10 $1.240m

Two Year Total $2.480m

This initiative provides funding to support the implementation of the New Zealand Skills Strategy to be led by the Skills Strategy Programme Office.
 

The New Zealand Skills Strategy is a partnership between workers, industry and government to drive skills development and utilisation in New Zealand.

Supporting an Industry Training Organisation Strategic Leadership Fund
 

Operating funding

• 2008/09 $1.125m
• 2009/10 $2.250m
• 2010/11 $2.250m
• 2011/12 $2.250m

Four Year Total $7.875m

This initiative provides additional funding to increase the size of the Tertiary Education Organisation Component for Industry Training Organisations (ITOs).  This funding supports the distinctive contribution of ITOs, in particular the Strategic Leadership Role.

Tertiary Education Commission: Policy Advice and Leadership of Tertiary Reforms
 

Operating funding

• 2008/09 $8.310m
• 2009/10 $7.075m
• 2010/11 $7.075m
• 2011/12 $7.075m

Four Year Total $29.535m

This initiative supports the work of the Tertiary Education Commission (TEC) in leading the tertiary reforms, including both policy development and leadership of change in the tertiary sector.
 

It strengthens the ownership and monitoring role of the TEC and will enable a partnership approach to supporting Tertiary Education Institutions (TEIs), and reduce the need for Crown interventions. 
 

It also creates a small number of additional roles to continue the detailed policy development required for the reforms, and funds some areas of work hosted by the TEC on behalf of other education agencies.

Funding the National Qualifications Framework
 

Operating funding

• 2008/09 $0.750m

One Year Total $0.750m

This new funding is for the New Zealand Qualifications Authority (NZQA) to administer the National Qualifications Framework (NQF) pending decisions about credit fees increases (which could take effect from 1 January 2009).

Lowering the Age Limit for Student Allowance Parental Income Testing by One Year
 

Operating funding

• 2008/09 $9.140m
• 2009/10 $17.806m
• 2010/11 $19.043m
• 2011/12 $20.300m

Four Year Total $66.289m
 

Capital funding

• 2008/09 ($2.437m)
• 2009/10 ($5.095m)
• 2010/11 ($5.118m)
• 2011/12 ($5.107m)

Four Year Total ($17.757m)
 

[Note that funding is split between Votes Social Development and Revenue]

Government is increasing eligibility for student allowances by lowering the age at which the student allowance parental income test no longer applies.  This change takes effect from 1 January 2009. |
 

The age limit reduces from 25 to 24 years of age.  The maximum rate of student allowances for those aged 24 also increases to that currently available to students aged 25 years and above.
 

More than 5,000 students a year are expected to benefit from this initiative.

Increasing the Student Allowance Parental Income Threshold by 10 Percent
 

Operating funding

• 2008/09 $4.314m
• 2009/10 $8.431m
• 2010/11 $8.854m
• 2011/12 $9.260m

Four Year Total $30.859m
 

Capital funding

• 2008/09 ($1.008m)
• 2009/10 ($2.130m)
• 2010/11 ($2.075m)
• 2011/12 ($2.009m)

Four Year Total ($7.222m)
 

[Note that funding is split between Votes Social Development and Revenue]

This initiative widens access to student allowances by increasing the parental income threshold by 10 percent.  This change means that students whose parent’s combined income is less than $50,318.22 per annum will be eligible for a full allowance from 1 January 2009 to widen eligibility to student allowances to more full-time students. 
 

This initiative also raises the cut-out point (i.e. the point at which students become ineligible for a student allowance) to $82,237.80 per annum for those living away from home and $75,855.32 per annum for those living at home.  This increase is over and above the annual Consumer Price Index increases effective on 1 April each year.
 

Increasing the Student Loan Scheme Living Cost Component to $155 per week
 

Operating funding

• 2008/09 $2.774m
• 2009/10 $5.233m
• 2010/11 $6.072m
• 2011/12 $6.187m

Four Year Total $20.266m
 

Capital funding

• 2008/09 $6.139m
• 2009/10 $13.583m
• 2010/11 $16.185m
• 2011/12 $16.957m

Four Year Total $52.864m
 

[Note that funding is split between Votes Social Development and Revenue]

This initiative provides for an adjustment of the Student Loan Scheme living cost maximum entitlement each year by the rate of inflation, along with an initial increase from $150 to $155 per week from 1 January 2009.
 

This initiative increases the maximum student loan living entitlement for the first time since it was put in place in 1997.
 

Approximately 95,000 students a year are expected to benefit from this initiative.

Expansion of the Bonded Merit Scholarship Scheme
 

Operating funding

• 2008/09 $1.444m
• 2009/10 $2.831m
• 2010/11 $4.243m
• 2011/12 $4.866m

Four Year Total $13.384m
 

Capital funding

• 2008/09 ($0.399m)
• 2009/10 ($0.777m)
• 2010/11 ($1.131m)
• 2011/12 ($1.221m)

Four Year Total ($3.528m)
 

[Note that funding is split between Votes Social Development and Revenue]

The number of new Bonded Merit scholarships offered to students in 2008 for the 2009 academic year will be increased from 1,000 to 1,500. 
 

Bonded Merit scholarships recognise and reward New Zealand’s most academically capable students (from the second year of their first bachelor’s degree).  They fund a maximum of $3,000 per year for course fees for up to four years.  Students are bonded to stay in New Zealand after they have graduated for the same time period as the duration of their study.
 

The government has identified the need for New Zealand to retain more skilled graduates so that they can contribute to the achievement of the government’s economic transformation goals.  The bonding component of the scheme will assist with this.
 

The scheme was introduced in 2006 and there are currently about 2,460 students on the scheme.

Savings identified in Vote Education (Tertiary)
 

Operating funding

• 2008/09 ($5.500m)
• 2009/10 ($3.500m)
• 2010/11 ($3.500m)
• 2011/12 ($3.500m)

Four Year Total ($16.000m)

Following an analysis of current baselines for tertiary education, Skill Enhancement and Enterprise Scholarships have been identified as areas of consistent underspend.  The baseline for Skill Enhancement has been reduced by $3 million on an ongoing basis.  The baseline for Enterprise Scholarships has been reduced by $2 million for 2008/09 only.
 

In addition, $500,000 held within the Ministry of Education's departmental baselines following the review of its tertiary functions has now been released. 
 

This reprioritisation will not affect current levels of provision or agency capacity, and will be used to support other areas of tertiary education. 

Tertiary Education Capital Investment Fund (Contingency)
 

Operating funding

• 2008/09 $35.000m
• 2009/10 $30.000m
• 2010/11 $30.000m

Three Year Total $95.000m
 

[A further $17.021 million has been transferred from other, existing contingency items, to make the total value of the fund $112.021 million.]

This initiative will create a new capital contingency fund for three years.  The Fund will contribute to strategic capital projects at tertiary education institutions which those institutions cannot fund from other means.
 

The Capital Fund will provide a mechanism for the government to prioritise its capital expenditure.  It will support structured and higher quality government investment decisions and foster improved institutional viability.  The Fund will replace current contingencies and ad-hoc funding.
 

The TEC will establish an expert advisory panel to assess proposals for capital funding rigorously and consistently against known assessment criteria.

International Education Promotions
 

Operating funding

• 2008/09 $0.450m
• 2009/10 $0.450m
• 2010/11 $0.450m
• 2011/12 $0.450m

Four Year Total $1.800m

This initiative will fund an ongoing increase in the budget for generic education promotions activities in other countries.
 

The additional funding will assist NZ education providers (e.g. NZ universities, polytechnics, schools, and English language providers) to compete effectively in the tough market for international students, through effective branding of New Zealand’s educational and lifestyle advantages.