May 26 2014 Professor Peter Noonan Professorial Fellow, Mitchell Institute Victoria University Honorary Fellow LH Martin Institute Graduate School of Education The University of Melbourne Global and National Trends: Policy Decisions and Impacts on Vocational and Higher Education The need for a new tertiary education financing framework
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May 26 2014 Professor Peter Noonan Professorial Fellow, Mitchell Institute Victoria University Honorary Fellow LH Martin Institute Graduate School of Education.
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May 26 2014
Professor Peter NoonanProfessorial Fellow, Mitchell Institute Victoria University
Honorary Fellow LH Martin InstituteGraduate School of EducationThe University of Melbourne
Global and National Trends: Policy Decisions and Impacts on Vocational and Higher EducationThe need for a new tertiary education financing framework
Current issues in tertiary education financing
• Three major unresolved policy challenges:– Divergent approaches and implementation of entitlement
concept– Growing gap in investment and enrolment growth between
VET and higher education– Growing gaps in entitlement models between states in VET
• Broader policy context– Reconceptualising tertiary education– Federalism reform process– Review of VET entitlement
Mitchell Institute Tertiary Funding Project
• Phase one report http://www.mitchellinstitute.org.au/reports/financing-tertiary-education-in-australia-the-reform-imperative-and-rethinking-student-entitlements
– Rationale – Principles – Key elements– Financing framework – Modeling scope and methodology– Next steps
• Phase two report– Modeling outcomes– Final design and implementation– Mid June release
Problems with current tertiary funding model
• Differential treatment of students;• Inconsistency in eligibility, subsidies and fees• Inconsistent access to income contingent loans• Inconsistent access to student income support• Widening investment gap between higher education
and VET;• Growing gap in per student funding levels;• Potential distortion of student choice; and• Diminished overall effectiveness of the tertiary
education system.
Expenditure on education and training in Australia, 2003-4 to 2012-13
The proposal • Coherent approach to tertiary education policy
– Tertiary education defined as Certificate III and above– Certificate I and II defined as pre-tertiary
• Commit to a coherent tertiary entitlement model through COAG
• Each level of government takes specific responsibility for a specific set of qualifications – Commonwealth degrees and sub degrees– States fund certificate III and IV
• Extend ICLs to all tertiary qualifications under a single scheme– Will require major rethinking of ICL design
Commonwealth and State funding responsibilities by AQF level
Key issues• Eligibility for entitlement– 18-24 year olds or working age population– Funding still available outside of the entitlement
• Design and relationship between subsidies and fees
• Extension of ICLs and settings– outcomes of modeling– financial sustainability essential
• Need for proper modeling of future demand requirements