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The foundation studies funding experiment In the 2012 Budget the government took one-third of the money it normally uses to fund foundation level tertiary education (level 1 and 2 courses) and put it up for tender – $38 million out of $115 million. At the time TEU warned that this could have two perverse consequences: 1. 2. Public money would move away from public providers, such as our polytechnics with their longstanding record of high quality regional education, towards private for-profit companies. Public providers, like our polytechnics, would respond to the competitive funding model by acting like private businesses. They would be forced to cut courses, offer the cheapest possible courses so that they could win the tender, and focus less on giving student and communities’ lifelong learning paths and more on passing students through short one-year courses. Before knowing the outcome of this experiment the Minister for Tertiary Education Steven Joyce is already talking about expanding it so all Level 1-2 funding becomes competitively tendered. When the minister announced the results of the tender process, two-thirds of our polytechnics had missed out on funding, as had other large public foundation studies providers like Lincoln University. Table 1: funding allocation by sub-sector Institution type Percentage of allocation Equivalent full-time students Wānanga 58 percent 3204 PTEs 27 percent 1473 Polytechnics 15 percent 833 TEU - THERE’S A PLACE FOR YOU TEU is campaigning against this competitive funding model because we believe it is an ideological experiment in privatisation that will fail. Public money should continue to go to local public institutions that belong to and are committed to their communities in the long-term. The Tertiary Education Commission allocated $38m of an available $40m. The remaining funds will be allocated during investment plan negotiations. The $38m will fund about 5,500 Equivalent Full-time Students (EFTS), for $6,909 per EFTS. Te Wānanga o Aotearoa was the only wānanga to receive funding - 58 percent of all student places awarded in the tender. Only six publicly owned polytechnics received funding. Seventeen private training establishments (PTEs) also received funding. 7 out of 18 polytechnics have announced how they will respond to budget cuts: So far over 97 $11 million lost funding from public polytechnics. possible redundancies At least 26 courses closed Over 2000 student places gone


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