A comparison of delivery costs and tertiary education funding by field of study: Results and methodology Publications
Publication Details
This paper outlines the approach taken by the Ministry of Education to identify areas of potential tuition subsidy under- or over-funding, its limitations, and the key results. It also discusses how this analysis has informed tertiary education policy advice, and the Government's decisions to increase tuition subsidy rates in targeted areas.
Author(s): Scott Connew, Marny Dickson and Warren Smart, Ministry of Education.
Date Published: May 2015
Summary
Key Findings
Our analysis found that 2012 tuition subsidy rates were neither too high, nor too low, compared to direct operating costs in most fields of study and in most institution types. However, there was evidence of relative tuition subsidy under-funding in some fields and levels of study.
Decisions taken in Budgets 2013 and 2014 reduced many of these imbalances. After updating the analysis to apply 2015 tuition subsidy rates, there remains evidence of under-funding in a small number of fields:
- 2015 average tuition subsidy rates for laboratory-based sciences in universities were 2 times higher than management and commerce, while 2012 average direct costs were 2.3 times that of management and commerce
- 2015 average tuition subsidy rates for agriculture in the universities were 2.1 times that of management and commerce, while 2012 average direct costs were 2.5 times that of management and commerce
- 2015 average tuition subsidy rates for optometry, pharmacy and physiotherapy were, respectively, 2.3, 2.2 and 1.6 times that of management and commerce, while the 2012 average direct costs were, respectively 2.8, 2.4 and 2.3 times that of management and commerce.
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