Two Decades Of Decline Continues

Government funding per equivalent full-time university student has declined by 36 per cent since 1980, according to a report released today by the Association of University Staff (AUS) and NZ Vice-Chancellors' Committee (NZVCC).

"Between 1980 and 1999 real government funding in 1999 dollars per EFTS fell at an annual average rate of 2.3% or by $3,821," the report states. Entitled "New Zealand University Funding Over The Past Two Decades", the document was produced by independent economist Guy Scott, assisted by a research grant from the AUS and NZVCC.

In a joint statement the two bodies noted that the per student funding decline would continue next year under the fee stabilisation proposal announced in the Budget.

Government has offered $30.5 million to fund a 2.3% per student funding increase in 2001 to those tertiary education institutions which commit to holding their 2001 tuition fees to 2000 levels. The offer is based on an inflation index of 1.6% across EFTS and tuition fee revenue. Fees, and tuition subsidies delivered through the per student funding system, constitute the total financial resource available to universities for their core function of teaching and research. Currently 70% of university resourcing comes from tuition subsidies and 30% from fees. With fees effectively frozen and inflation running at 2.3% or more, universities that accept the fee stabilisation offer will continue to lose ground financially.

For further comment contact:
Rob Crozier Lindsay Taiaroa
Executive Director Executive Director
Association of University Staff NZ Vice-Chancellors' Committee
Telephone: 04 915-6691 Telephone: 04 381-8500
021 375-661 Email: lindsay@nzvcc.ac.nz
Email: rob.crozier@aus.ac.nz

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