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VET and higher education funding: is it lifting social inclusion?

VET and higher education funding: is it lifting social inclusion? Gerald Burke and Peter Noonan ‘Where to now with VET and social inclusion ?’ 17th Annual National CEET Conference - Friday 1 November 2013 Monash Conference Centre – 30 Collins Street, Melbourne.

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VET and higher education funding: is it lifting social inclusion?

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  1. VET and higher education funding: is it lifting social inclusion? Gerald Burke and Peter Noonan ‘Where to now with VET and social inclusion?’ 17th Annual National CEET Conference - Friday 1 November 2013 Monash Conference Centre – 30 Collins Street, Melbourne

  2. Benefits and policies • Postsecondary students • Funding CEET

  3. Employment benefits of qualifications(Persons 25-64 Australia 2011) CEET

  4. Policies: More training, more inclusive, better focus and use • Core skills, literacy and numeracy • Additional wrap-around support for less advantaged • VET and higher education system 3% p.a AWPA, more COAG • Lift quality in teaching and assessment • Assess specialised occupations, lessen shortages • Workforce development to reduce under use of skills

  5. Policies and benefits • Postsecondary students • Funding CEET

  6. Enrolment rates by age 2010 CEET

  7. Postsecondary students Australia 2010 CEET

  8. Background – policies and benefits • Postsecondary students • Funding CEET

  9. OECD classification of countries’ finance models 1 no/low tuition fees; generous student support 2 high tuition fees; well-developed student-support 3 high tuition fees; less-developed student support 4 low tuition fees; less-developed student-support CEET

  10. Funding of universities 2013 CEET

  11. Government expenditure per student or hour CEET

  12. Key aspects of funding • Fees since 1989 • Loans from 1989 • income contingent, Australian government funded • repay through income tax system if income $51,000+ • about 30% of HELP cost covered by government • Income support grants for less advantaged—eg Youth Allowance • (Some) extra funding for tuition/mentoring of less advantaged • ‘Entitlements’ to government supported places • unlimited in higher education so far • Complex/varied in VET; not all supportive of less advantaged • Open to private providers in VET CEET

  13. COAG reform council projections of people without a higher level qualification CEET

  14. Additional commencements required in TE to meet COAG target Additional 1.7 million commencements over 8 years from 2013. Will require $20 billion additional expenditure. Source : ACIL ALLEN CONSULTING ANALYSIS CEET

  15. VET government revenues constant 2012 prices Australia $ million CEET

  16. Funding outlook and COAG targets • VET funding outlook well short of requirement to meet COAG target without further major drop in per student funding. • COAG target rationale not clear and should be reviewed if a target is retained. • However target has clearly help drive increased attainment levels • Quality and level of skills utilisation also need to be considered. CEET

  17. Implications for entitlement models • Different eligibility rules, rationale for public subsidies and student contributions across VET and between VET and HE • Tension between public value and priority needs role of VET and general goals to lift workforce participation levels and social inclusion • Highest public subsidies likely to go to areas of highest private return • Case for better targeting of entitlement – e.g. school leavers and new workforce entrants and different funding model for existing workforce CEET

  18. That’s all Thanks CEET

  19. Key messages • Disadvantaged have been helped but not as much as hoped • The VET sector is the main provider for disadvantaged • Indigenous/those with disability increased in the VET sector. • Low SES improved share when rapid expansion in HE and VET • Leads to enhanced employment if good quality education • Difficulties in sustaining funding and quality • Disadvantaged suffer when poor quality: less informed, lower cost CEET

  20. Quality • lack of funding for good teaching • inadequate assurance of assessment • poor information • Bradley -- a regulatory and quality assurance agency for whole of tertiary • Efficiency and use of funds – more for less • outcome based funding • competitive funding • better management and new technology • Funds • Bradley -- national TERTIARY entitlement funding model • Australian government to take over government VET funding • increase fees and HELP • increase employer contributions eg National Workforce Development Fund • more indexed public funding for tuition and support of less advantaged CEET

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