Outputs and outcomes of the government's tertiary education expenditure 2005-2009 Publications
This report synthesises the inputs, outputs and outcomes of the government’s tertiary education expenditure over the period 2005 to 2009 in eight key funds. In total, these funds distributed around $4.3 billion to providers and students in 2009.
Author(s): Tertiary Sector Performance Analysis, Ministry of Education.
Date Published: November 2010
This report synthesises the inputs, outputs and outcomes of the government’s tertiary education expenditure over the period 2005 to 2009 in eight key funds. In total, these funds distributed around $4.3 billion to providers and students in 2009. The data shows that:
Student Achievement Component (SAC) ($1,831 million in 2009)
- Total SAC funding has increased in real terms between 2005 and 2009. This has been driven by a moderate increase in the number of equivalent full-time students (EFTS).
- The impact of the recession on enrolments is clear, with the number of delivered EFTS increasing by 7.5 percent in 2009. As a result, actual delivered EFTS were around 5 percent higher than funded EFTS in 2009.
- In 2009, the value of successful course-level study per dollar of government expenditure was higher than in 2005. This result was mainly due to the level of over-delivery in 2009.
- The five-year completion rate of SAC-funded qualifications increased between 2005 and 2009.
- Between 2005 and 2009, an increasing proportion of SAC-funded qualifications awarded were to students aged under 25 and studying at level 4 or higher. Also, an increasing proportion of Māori or Pasifika students completing SAC-funded qualifications were studying at level 4 or higher.
- People with tertiary qualifications continued to enjoy higher earnings premiums and a higher likelihood of employment than people with school-level or no qualifications.
Performance-Based Research Fund (PBRF) ($239 million in 2009)
- There was a substantial increase in PBRF funding (including research top-ups) between 2005 and 2009 in real terms.
- Postgraduate qualification completion rates have been rising.
- The rate of citation of indexed publications by authors from New Zealand tertiary education institutions has improved.
Industry Training Fund ($158 million in 2009)
- There was a substantial increase in funding allocated to the Industry Training Fund between 2005 and 2009 in real terms. The increase in funding has allowed a substantial increase in the volume of trainees.
- The number of credits attained by trainees increased in total between 2005 and 2009, although the number of credits attained per standard training measure (STM) fell.
- Programme and qualification completion rates have generally increased between 2005 and 2009.
- People with tertiary qualifications up to level 4-7 certificates or diplomas continued to have an earnings and employment advantage over those people with school or no qualifications.
Modern Apprenticeships ($43 million in 2009)
- The total amount of funding allocated to Modern Apprenticeships increased by almost 50 percent between 2005 and 2009. This increase in funding has allowed for a significant increase in trainee numbers.
- The number of new trainees starting a Modern Apprenticeship declined sharply in 2009, reflecting the impact of the recession.
- The number of credits attained has increased significantly in line with increased trainee numbers.
- The number of credits attained per STM was slightly higher in 2009 than in 2005.
- The completion rate of programmes and qualifications has exhibited an increasing trend over time.
- Among the younger population, there is a significant employment advantage and generally an earnings advantage for those with tertiary qualifications compared with those people with school or no qualifications.
Training Opportunities ($85 million in 2009)
- Total funding allocated to Training Opportunities decreased slightly in real terms between 2005 and 2009. The number of placements has also decreased, as the employment market has changed and as the criteria for acceptance into the programme have changed.
- The number of credits attained fell between 2005 and 2009. Although trainee numbers also fell, the number of credits attained per $1,000 of real government expenditure was also lower in 2009 compared with 2005.
- The two-month post-study outcomes for placements have seen the proportion of students who do not find employment or undergo further training remain relatively constant at around one in five. However, with the onset of the recession there has been a decrease in the proportion of trainees in employment and an increase in the proportion of trainees in further training.
Youth Training ($58 million in 2009)
- Total funding allocated to Youth Training fell in real terms between 2005 and 2009, although there was a slight increase in real terms between 2008 and 2009. There was a decrease in the number of placements between 2005 and 2009. This decrease in placements was due, in part, to a strengthening labour market up to 2008 and a tightening up in 2007 of the criteria for granting early school leaver exemptions.
- The number of credits attained fell between 2005 and 2009, although there was a slight increase in 2009.
- The number of credits attained per $1,000 of real government expenditure was higher in 2009 than in 2005.
- Between 2005 and 2009, the proportion of placements that results in a trainee not being in further study or in employment two months post study has remained relatively constant at around 16 percent. However, with the onset of the recession, there has been a fall in the number of placements resulting in employment, while the number of placements resulting in further study has increased.
Student loans and student allowances ($1,389 million allocated to student loans and $515 million allocated to student allowances in 2009)
- There were substantial increases in government expenditure on student loans and student allowances between 2005 and 2009.
- There were significant increases in student loan borrowers and student allowance recipients between 2005 and 2009. Part of this increase is a result of increased participation during the recession, but changes to eligibility criteria have also had an impact.
- While the nominal value of the Student Loan Scheme increased between 2006 and 2009, the fair value of the scheme decreased.
- The representation of students from low-decile schools in tertiary education was maintained between 2005 and 2009.