This post by James Buwalda, NZ ITP Chairperson, is the fourth in our series of guest posts from sector groups on the 2010 Budget.

The annual Budget is the Government’s main device for laying out in detail fiscal policies that have often been signalled for some time.  NZ ITP expects the tertiary education section of the 2010 Budget to be no exception – confirming funding cuts signalled clearly by the Government over the last 12-18 months.  Our ITP members are generally ready to deal with the consequences of these funding changes.

While we don’t expect too many surprises on the quantum of funding, we’ll be interested in fine details about incentivising performance and improving quality and value-for-money.

The 2010 Budget comes hard on the heels of reconstituted Councils for the ITP sector.  New Councils, with only 8 members of whom 4 are Ministerial appointees, will be directly accountable to the Government for achieving the educational and financial performance gains being sought.  Educational and financial outcomes achieved by each ITP will depend very strongly on how Councils respond to both the immediate and longer-term challenges set by the Budget.

NZ ITP’s members are committed to delivering high quality, relevant, accessible and cost-effective applied and vocational education.  They support the overall policy focus on more young people achieving higher qualifications, helping adult learners gain the foundation skills required for higher-level study or skilled employment, strengthening the educational and financial performance of providers, and delivering high quality applied and vocational research.

The Government has set strong expectations for improved financial and educational performance from the tertiary education sector.  ITPs are moving already to drive more efficient, innovative and flexible operations, so students, employers and the Government get more value for money and New Zealand benefits through a more skilled and productive work-force.  The changes needed over coming years will be complex and far-reaching.  Better links with schools to support transitions to tertiary education, streamlined and higher level qualifications, more flexible and cost-effective delivery, stronger links with industry, and better value from capital investment are just some of the areas where performance must be lifted to better deal with the educational and economic challenges facing the ITP sector.

NZ ITP’s members generally turned in strong financial performances for the 2009 academic year, and now have more cash available to reinvest in facilities and to fund organisational change.  NZ ITP expects its members will show strong financial results again in 2010, so they are ready to adjust to the tighter funding environment in 2011 and beyond.

ITPs are making these financial and performance adjustments at the same time as demand for their services is increasing.  New Zealand needs a workforce that is more flexible and more resilient, with improved workers’ skills at all levels and in all areas of the economy, with the right skills developed at the right time.  ITPs are the most popular places for adults to study in New Zealand.  Their continued success in the wake of funding cuts to be announced in the Budget is important for all our futures.