Summary: This report synthesises the inputs, outputs and outcomes of the Government’s tertiary education expenditure over the period 2004-2013 in the five largest tertiary education funds. In total, these funds distributed over 4billiontoprovidersandstudentsin2013.StudentAchievementComponent(SAC)(2,018 million in 2013)
The SAC has exhibited increased efficiency over the last 10 years, as measured by the percentage of study load completed successfully. The largest gains in efficiency occurred when the Government increased its focus on performance by introducing the Education Performance Indicators (EPIs) and performance-linked funding. The gains were largest in the polytechnic, wānanga and private training establishment (PTE) subsectors, with universities having started from a higher base. The level of efficiency stabilised in 2012 and 2013.
Returns for provider-based qualifications have been maintained over time, although the impact of the Global Financial Crisis resulted in a slight drop in real earnings for new graduates. The higher employment rate of tertiary graduates compared with people with school qualifications and those with no qualifications was maintained between 2004 and 2013.
Industry training (138millionin2013)Between2004and2013,industrytrainingexhibitedaperiodofsubstantialgrowthandthencontractioninthenumberoftrainees.Theexpansioninindustrytrainingduring2006and2009wasassociatedwithadropinefficiencyintermsoftherateofsuccessfulcreditattainment.Since2010,thenumberofdeliveredStandardTrainingMeasures(STMs)andtheamountofGovernmentexpenditureonindustrytraininghavedecreasedsignificantly.ThisdeclinecoincidedwithTertiaryEducationCommission’soperationalreview2ofindustrytrainingandtheonsetoftheGlobalFinancialCrisis.Althoughthevolumeofindustrytrainingdeclined,thecreditattainmentratesimproved,reflectingasmallerbutmoreefficientsystemoftraining.Studentloansandstudentallowances(1,599 million allocated to student loans (new lending) and 553millionallocatedtostudentallowancesin2013)Afteralmostdoublingbetween2004and2012,expenditureonstudentallowancesdecreasedin2013,aseligibilitychangesimpactedonthenumberofrecipients.Governmentexpenditureonstudentloansincreasedslightlyin2013,despitethenumberofborrowersfallingslightlyasaresultoffallingparticipationintertiaryeducation.Modellingofthebehaviourofschoolleaversshowsthat,aftercontrollingforschoolachievement,therelativeaccessratetotertiaryeducationforschoolleaversfromlessaffluentareashasbeenmaintained.Performance−BasedResearchFund(PBRF)(262.5 million in 2013)
The introduction of the PBRF has been associated with an increase in the rate of citation of research from New Zealand universities. In addition, the volume of research degree completions and the rate of qualification completion have been improving. Since 2007, the base funding per point on all three PBRF components (Quality Evaluation, research degree completions and external research income) has declined in real terms. However, phased increases in the PBRF now taking place should help to offset this trend