Executive Director's 2012 Budget summary

2012 Budget decisions

SAVINGS measures
The Government targeted its savings at student benefits avoiding reductions to universities' revenue.

1.    Student contribution for science and mathematics units

The Government announced in December 2011 that from 2013 new students enrolling in science and mathematics units from 2013 would be charged up to the Band 2 rate, and no longer be limited to the national priority rate.  The Budget has extended the change to existing students, bringing forward the full saving.
Students will pay about $160 million more in 2013, $100 million in 2014, and $40 million in 2015.  Government funding for those units will decrease to balance the student increase.
There can be some discussion about changing the charging regime for existing students, some of whom could argue that had they chosen a science or mathematics stream due to the lower charge.  The evidence suggests that is true for few students.  The Base Funding Review recommended the change but it took a general approach of incrementally introducing any changes to student charges.

2.    Australian students not living in Australia

A small saving comes from removing access to HELP {?] loans for Australians if enrolled but not living in Australia.  It does not apply to short term offshore study arrangements.

In a similar way Youth Allowance (and other income benefits) will not be paid if the person is outside Australia for more than 6 weeks.

3.    Reduction in international scholarships

Scholarships funded by DIISRTE (AEI) will reduce by $4 million 2012-13 and then $2 million.  I am not sure of current extent of these scholarships to judge the impact.

EXPENDITURE measures

4.    The equity package

The Base Funding Review argued that the low SES loading and the enabling loading should be set to a standard rate per EFTSL, to avoid the rate reducing as the number of students expands.  The Government has taken up this proposal such that:

•    the low SES loading will be set to $1400 per EFTSL from 2013 [not fully clear] and indexed; and

•    the enabling loading will increase from $1833 (2012) to $2500 in 2013 and $3068 indexed from 2014.  This adds about $14 million a year once fully in place.

Both loadings are currently around $1800.  There is thus a saving to it from the low SES change in the first few years - to 2015 or 2016 where the number of low SES students would reduce the rate under the current arrangements to $1400 or below.

The saving is used to support the enabling loading change and to increase the partnerships element of HEPPP.  Overall there is an increase in total expenditure of $23 million over the four years.

For universities the amounts received will change for all three elements such that individually the impact will be quite variable.  There is also a question about the direct value of the partnership funding which requires external activity that may in the future ensure better educated applicants but which does not support current teaching expenditure requirements.

5.    Science and mathematics education

A package across DIISRTE and DEEWR driven by a report from Professor Chubb, Chief Scientist, worth about $14 million a year once fully in place from second half of 2013.

•    improving teaching quality through

o    mathematics and science teaching training, hence for universities;
o    support to current teachers and school science support staff;

•    raising of school student interest in science and mathematics

o    involving university staff in more interactions with school students;
o    support for intensive teaching (summer schools etc) through Australian Mathematical Sciences Institute and in international events like science Olympiads;

•    a new Education and Industry advisor in the Office of the Chief Scientist.

Applications and enrolments in sciences have increased as universities have expanded, and at a rate slightly ahead of the general expansion.  Further effort to ensure higher level science and mathematics study at school should help maintain the growth in interest.

Strengthening of school student capabilities in sciences and mathematics is important for the debate about entry standards into universities.  University entry is formally based on completion of year 12 certificates.  For universities to accept applications from the full set of such students one issue is confidence in their school level learning.  If the package can improve the general standard, as well as encourage the very capable students, it will improve the transition year 12 certificate to university.

6.    Other measures

•   Funding to support HECS-HELP reductions for early childhood teachers who take relevant positions.  The range of eligible locations in which to work is widened.

•    Youth Allowance and other income support recipients will receive an additional non taxable payment each March and September to help with larger expenses.  $210 a year for a single person; $350 for a couple.

•    Ongoing funding for the National Academies.

7.    One off payments

There are three for universities:

•    Murdoch for its Px2 equity programs, $5 million before July 2012, redirected from schooling funds the WA Government has not taken up;

•    Monash Foundation;

•    UWS to refurbish further parts of the historic orphanage buildings at Parramatta, $7 million.

RESEARCH
There are no formal research measures.  The Government emphasises that the planned growth in SRE continues with RIBG-SRE due to reach 50 cents per national competitive grant dollar from 2014.

There are to be consultations about renewing NCRIS.  There is no funding allocated.  Rather DIISRTE has floated with UA and the Go8 options to redirect some of the SRE growth to research infrastructure.  This is a question for universities to consider carefully.  In effect is there a benefit from supporting further collective research infrastructure, including potentially upkeep and use of previously funded facilities, over retaining all currently planned funding for university uses.

If an amount is to be re-allocated from SRE on what basis would that be done - a slice with remaining funds allocated by SRE formulae; a proportion off each university's SRE (all or just threshold two?).  How would that translate into the allocations of the new NCRIS for value to each university.

DEMAND DRIVEN FUNDING AND BASE FUNDING
The Minister's release includes estimates for student numbers and funded load out to 2015.  The funded load data shows growth of 20,000 to 30,000 EFTSL each year from 2009 through to 2013, then slowing with only an 8000 EFTSL growth in 2015.  These estimates may be designed to reflect current reality for its pipeline effect and then reduce the growth to make Government fiscal forecasts less extreme.

	2007	2008	2009	2010	2011	2012	2013	2014	2015
Students	562,079	575,675	612,873	652,394	670,000	710,000	740,000	760,000	770,000
Funded student places	428,735	439,666	469,073	499,704	518,900	547,900	572,400	590,700	498,300
Commonwlealth Grant scheme	$3.5b	$3.8b	$4.1b	$4.8b	$5.0b	$5.9b	$6.1b	$6.5b	$6.8b