University of Waikato Exceeds Funding Cap

March 13th 2010 at 1:10pm, By Dave Guerin

One of the big issues in tertiary education last year was whether providers could enrol above their funding cap. Enrolment demand was high due to the recession, while there was slower growth in places than in previous years, so providers were open to getting more funded places (obviously) as well as enrolling unfunded students (mainly because they had low marginal costs but also due to a feeling that it was the right thing to do). The problem for the government was that even unfunded places had student fees, which means student loans, which are funded through extra debt (almost half of which is expensed immediately).

I remember being on Nine to Noon with Anne Tolley last year, when I was representing the ITP sector, and she said that no-one would be allowed to go above their cap, because there was no money budgeted for extra student loan expenditure. It was the first time she’d said that publicly and TEC reinforced that message publicly and privately. I suspected at the time that universities would be given the nod and allowed to over-enrol (and heard some ITPs claim that they had been given leeway too) , but I was assured by TEC that the same message was going out to the whole sector – no exceeding the cap.

Now Roy Crawford, VC at the University of Waikato, has confirmed to The Waikato Times that they enrolled 106% of their cap last year (with 100% being spot on target), whereas the rules only allowed people to enrol up to 103% of their cap. Now did Waikato do this off their own bat or were they given encouragement by the government? And even if they weren’t given encouragement, will they face any sanction? The questions are important because thousands of extra students could have been enrolled last year, but most providers took the government’s statements seriously. If the government doesn’t deal with this, then we can expect a lot more enrolments above the 103% cap in 2010.

I have put in an OIA request on last year’s enrolments and will share them with readers when the answers come through. My guess is that 4-10 TEIs exceeded the 103% cap in 2009.

ITP Musical Chairs 6 – Ministerial Appointees

March 12th 2010 at 2:34pm, By Dave Guerin

I started a series on ITP Councils in early February but have been distracted from it over the last couple of weeks. so I thought I’d better write something about Ministerial appointees. (This is the sixth post in a series on ITP Council changes – the seventh will be on Joyce’s decisions and the last one will be on the final shape of ITP Councils.)

The Minister has been able to appoint four people to tertiary education institution councils under the Education Act 1989, but changes to the Act last last year mean that those four reps will be half of the total Council in ITPs. The Minister is also able to appoint the Chairperson at ITPs. He will do so next week.

I am supportive of the Minister appointing people to the Councils of ITPs, as the Minister does represent the ultimate owner of the institution (putting aside university sector semantics). But there are problems. If the Minister is to name representatives, then you would expect a clear vision as to what the Council is supposed to do and what competencies are needed on the Councils – I’m not confident that the current process consistently delivers on those issues (under this Minister or his predecessors over 20 years). I expect a pretty clear message from the Minister next week though. Of course, whatever you do with process design, Ministers are still bound to appoint party flunkies from time to time.

Another issue is the protection of institutional autonomy, but that is becoming less important in ITPs. Institutional autonomy has never been a standalone item – a better shorthand would be the “institutional autonomy-regulation balance”, which more accurately reflects section 160 of the Education Act 1989. And over the last couple of years, government agencies and Ministers have clearly decided that institutional autonomy is less important than institutional regulation in ITPs. In that light, it seems quite sensible to have greater Ministerial input in Councils.

Finally, whatever you or I might think about whether or how the Minister should appoint people to Councils, the political reality is that not many people care about it and that it was as easy as pie for the government to change the legislation last year. It’s a useful lesson for how things that seem set in stone can change very quickly, and one that we might see more or this year.

News 12 Mar – Students Get a Car, a Mock Funeral and Criticism

March 12th 2010 at 8:12am, By Dave Guerin

  1. Waiariki car winner Roberto Mura wioth CEO Pim BorrenStudent Giveaway Waiariki Institute of Technology has given away a car as part of a promotion to encourage students to pay their fees early. Roberto Mura won the prize and is pictured with Waiariki CEO Pim Borren (on the right). I think this may be the biggest prize ever given out as part of a tertiary education promotion – does anyone have any other suggestions?
  2. Tertiary education reform Three stories in provincial papers provide useful feedback from the tertiary sector. The Waikato Times quotes general support for the reforms from Te Wananga o Aoteaora, Wintec and the University of Waikato, with concern from PTE ATC New Zealand. The Manawatu Standard has qualified support from UCOL and Massey, although Steve Maharey at Massey really should be supportive, as he tried the same thing as a Minister. Sunlive, a website, interviews Bay of Plenty Poly CEO Alan Hampton, who seems cautious about the changes.
  3. NZUSA Attacked The Dominion Post has a stinging editorial about NZUSA’s approach today.
  4. VSM Students at Massey University mourned the death of their students association, as part of a protest against VSM. (By the way, their opposition, Student Choice, have a website.)
  5. Lincoln-Telford merger The ODT has another story, with union, business and local government reaction.
  6. Aoraki Restructuring Aoraki Polytechnic is doing some restructuring - the first since the CEO, Kay Nelson, started last year.
  7. Research Funding The government is funding four food research centres in what looks like an effective industry liaison and technology transfer strategy.
  8. Rugby World Cup The Hospitality Standards Institute released a training package for the Rugby World Cup nyesterday, developed with industry and polytechnics.

Bologna Process Stirs Blockades – Really

March 11th 2010 at 2:30pm, By Dave Guerin

The Bologna Process is an EU initiative that is basically designed to align degree structures across the EU (and the wider world – NZ’s relationship is covered here). The EU is running a Ministerial Anniversary Conference in Vienna this week “to honour and to assess the achievements of common action and its contribution to enhancing the quality and the diversification of higher education in Europe”. Also, it’s 10 years since they signed it.

So far, so boring, but the Bologna Burns site explains how demonstrations and blockades (all peaceful apparently) are being organised for the conference. It amazes me that such a fundamentally boring process can stir such passion.

All Must Be Above Average…

March 11th 2010 at 11:30am, By Dave Guerin

I was reading the proposed risk criteria for tertiary education institutions earlier this week and loved this item, which will probably just apply to polytechnics.

“12. That the institution is failing, or is likely to fail, to achieve educational outcomes that are commensurate with the average sector performance in terms of meeting the needs of learners, employers and the communities it serves.” Source: Consultation Document - Two reviews of legislation for institutions at risk and the associated gazetted criteria. MOE and TEC. December 2009 (p.28) NB Not available online, but you can ask for it here.

So, under this criterion, every polytechnic that falls below the average is automatically at risk and may face interventions, including sacking of the Council. To be fair, I think they’ll probably fix it during editing!

News 11 Mar – Telford and Lincoln to Merge?

March 11th 2010 at 7:42am, By Dave Guerin

  1. Lincoln University and Telford Rural Polytechnic are considering merging in 2011, according to an ODT story today. Telford spokespeople have referred to cuts in funding for short courses as a driver, along with the potential for lower running costs. The two institutions both operate in the primary sector but run complementary courses.
  2. Tertiary reforms
    • Steven Joyce and Maryan Street were on Close Up last night to discuss tertiary education reforms – mainly stating their previous positions. There was also a further story on TVNZ last night, whcih had interviews with Tom Ryan (TEU) and Alasdair Thompson (EMA Northern), which is worth a look for a broader perspective.
    • After initial confusion in the media over whether the quals review was going to cut courses with poor completion rates, NZPA has cleared things up, but not before a rash of stories came out with the wrong interpretation. To be fair to them, the Minister did drop a lot on their plate on Tuesday.
    • Pita Sharples of the Maori Party had to be placated by Steven Joyce after a communications mix-up, but who could blame Pita given all the vague media stories!
    • Yesterday TEC released information on public reporting of performance data on TEOs from July.
    • The TEU asked why Steven Joyce can find more money for roads but not tertiary education.
  3. Anne Tolley, Minister of Education, announced yesterday that the MOE would have to find $25m of savings and it was immediately claimed that this would end all good things (or something like that). Time will tell what the impact really is.
  4. Well, I’m looking forward to moa coming back from the dead, now that scientists at the University of Otago have extracted moa DNA from fossils - or maybe I’m confusing that with a film.
  5. The University of Auckland has enrolled the junior winner of the PM’s Science Prizes. Science New Zealand congratulated all the winners too.
  6. Victoria University has got in the paper for charging a late fee for late enrolments. The paper suggests that this is to help reduce enrolments, but all it will do is encourage people to enrol earlier, so there may be a misunderstanding here. Victoria is also being criticised by staff for “Magoo Management” – yes their headline did the trick by attracting attention, but the story looks a bit convoluted to go further.
  7. NMIT is sponsoring the Nelson Giants (basketball) and Tasman Rugby Union, with $9,000 in fees for players of each sport.

Let’s cut law courses!

March 10th 2010 at 2:31pm, By Dave Guerin

…well, give them the hard word anyway. A Facebook discussion I had last night made me think more about the impact of Steven Joyce’s performance funding on universities. While we usually talk and think about non-university, sub-degree courses in relation to poor course or qualification completion, some university courses also have poor results, like law.

Law courses often have a high enrolment in their first year (when law courses typically only make a part of the student’s courses) and then a savage cutback in year two. This will possibly lead to many students having unsuccessful course completion in year 1 (although many may pass) but will certainly lead to low qualification completion (half to two thirds of students may be gone at the end of year 1). The current approach is based on some or all of the following reasons.

  1. School marks are not always the best predictor of success at university and are often irrelevant to older students’ performance, so making decisions after a year of university academic performance gives a better indicator of future success.
  2. Students won’t have studied law before, so it makes sense to allow them to trial it.
  3. Since students have to take non-law papers in Year 1 as well, they can easily continue in and complete another degree.
  4. Letting only a few students through raises the prestige of law degrees and law lecturers (but so does having 3 applications for each place, so let’s not overstate this)

Now if a university wanted to improve its completion figures, it would look at law and find technical and real fixes to the issue. On the technical side, a university could simply refuse to accept law degree enrolments until Year 2, thereby avoiding the huge non-completion figures for that degree. On the real side, they could find a better way to manage entry into their degree and find the people likely to make the best of the opportunity.

And if start looking at real ways, we quickly find a value for money angle. If year 1 law courses are rated at 0.33 EFTS, then subsidies will be about $1700 and student fees about $1,300 for a total of $3,000 (exc GST), If, say, 800 students enrol in year 1, but only 300 go on to year 2, the cost of the trial for the 500 that don’t go on is $1.5m. Now if we put $1.5m on the table each year, I think we could come up with a better way to test people’s aptitude and interest for a law degree, and maybe people could study something else in Year 1 that might have more long-term relevance for them. And that will be the real impact of Joyce’s performance funding – sure, a few courses will lose funding, but it’s the wider questioning of current practice that will generate the main results. Whether law degree enrolment practices change or not, reporting on and looking at completions will affect how tertiary education operates.

(And if you’d rather not look at law courses, Danyl at the Dim-Post has sparked comments on the broader issues.)

  1. Steven Joyce, Minister of Tertiary Education, made announcements yesterday that tertiary tuition funding will be linked to performance (5-10% will be at risk), confirmed decisions about the targeted review of qualifications and repeated recent musings about limiting student loan access. He also made his first major speech. I commented yesterday on announcements. Reaction to the Minister has been swift!
  2. Northtec student Katie Hilford has been named Ellerslie International Flower Show Student Designer of the Year - her design is pictured. Lincoln University landscape architecture student and All Black Andy Ellis won a gold award at the Ellerslie Flower Show with fellow student Danny Kamo. In a win for ACE, the photography award winner at the show started off with a basic photography course at the University of Canterbury.
  3. The PM announced the PM’s Science Prize winners yesterday. The top winners were from CRI Industrial Research Limited, but five prizes were given out. The prizes are substantial, totalling $1m, and provide a strong signal of science’s importance. The main site is here.
  4. University of Otago enrolments are up 5.2% at this stage of the year and they expect to exceed the 103% limit by year end. In largely unrelated news, a car drove into one of the University’s student flats.
  5. Five Chinese students were arrested yesterday in relation to a major drug smuggling bust, with materials worth up to $3m.

Joyce Makes Big Speech, Smaller Announcements

March 9th 2010 at 1:31pm, By Dave Guerin

Steven Joyce, Minister of Tertiary Education, has made announcements today that tertiary tuition funding will be linked to performance and confirmed decisions about the targeted review of qualifications. More importantly, he made a big speech.

The Speech

Joyce’s speech gives a clear sense of where he is coming from and how he will operate – that’s important because it his first formal statement on tertiary education. There are also some comments on linking student loans to academic progress, repeating earlier views. You should read it, but some of his final words provide a good example of his thoughts.

I don’t see radical change on the cards.  What we need is a continued evolution to a more effective and efficient tertiary system that makes the very best use of the $4 billion we taxpayers contribute to it.

The Announcements

The funding announcement doesn’t really amount to much. Performance from this year on will be linked to funding from 2012 onwards. The things being measured are likely to be qualification completion, successful course completion and student progression to further study. To me though, he has hedged things – poor performers will “run the risk of losing funding”, or will not be funded “at the same level” and the amount at risk will “be low to start with so everyone has time to adjust”.

The performance funding policy could be very significant, but only if it is firm and simple. Grant Hodgson and Jim Doyle discussed this in comments last Friday, pointing out that the more complicated the system, the more it comes down to how good you are at interpreting the rules. We can quickly get mired in how everything is complicated and unique, whereas Joyce’s starting point is value for money. I hope he keeps the focus simple as the sector and officials attempt to complicate it.

On qualifications, Joyce mainly restated announcements that NZQA made in December, but now seem to have been approved by Cabinet. He did name a start date for the NZ Qualifications Framework – July 2010.

News 9 Mar – University Entry, VSM & Biodiesel

March 9th 2010 at 8:04am, By Dave Guerin

  1. The NZ Herald waded into tertiary education today, supporting Steven Joyce’s suggestion to limit student loans according to academic performance and the University of Auckland’s proposal to limit university access as well (and use extra money to increase subsidies). There was a related Radio NZ discussion on this last week that covered NZQA’s upcoming review of university entry - including VCs Steve Maharey (Massey) and Stuart McCutcheon (Auckland), NZUSA’s David Do and QPEC’s Liz Gordon.
  2. The NZ Herald is running a series on export education at the moment, starting with a piece yesterday on market size. Today they’ve covered the non-monetary value of international students and non-traditional courses, but the stories seem a bit insubstantial.
  3. Ako Aotearoa has released a few reports on mentoring of Pasifika students, the work of new academics and peer mentoring of distance students.
  4. Pansy Wong, Minister of Women’s Affairs, has released research that shows that pay gender gaps start soon after graduation – more work is planned.
  5. Otago Polytechnic has supported the development of a biodiesel consortium in Queenstown.
  6. Victoria University student newspaper has a suite of stories on voluntary student membership - more than you ever wanted to read probably.
  7. The Open Polytechnic is partnering with Sovereign for the new training for financial advisers.
  8. TEC is checking ITOs’ operations to see what regulatory compliance/health and safety courses they are running. This follows up on a decision last year to stop funding such courses. Similar checking occurred with ITPs last year.

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