2005funding

Information about 2005funding

Published on March 7, 2008

Author: Susett

Source: authorstream.com

Content

TAFE CAMPAIGN 2005 :  TAFE CAMPAIGN 2005 May 2005 Michaela Kronemann Federal Research Officer Contents::  Contents: The Commonwealth role in funding VET Impact of the resource pressures A new federalism: the federal agenda Future funding & federal conditions AEU campaign 2005 Funding Overview :  Funding Overview Governments provide 78.3% of recurrent revenue for publicly funded VET. The Commonwealth provides: 28.7% of recurrent government funding 61% of capital funding. The states and territories continue to provide the bulk of recurrent funding. Slide4:  ANTA Agreements- funding 1993-97 An initial $100 million and $70m per year (cumulative) to fund enrolment growth. States required to maintain effort. 1996-97 Budget cuts reduced funding base by a cumulative $240m. Labour market programs slashed. 1998-00 Growth funding abolished, Commonwealth funding freeze. Growth through efficiencies: estimated cost of loss of growth funding - $377m. 2001-03 Limited growth funding restored, states required to match. Commonwealth input $230m over 3 years, states sought $900m. Failed negotiations for 2004-06:  Failed negotiations for 2004-06 Commonwealth offer – no additional growth funds – only indexation of 2003 amount, $119.5 million for Welfare Reform Measures from previous budgets. States argue they need $348m more. Minister Nelson imposes penalties for rejecting offer. States reluctantly sign up to a 12 month rollover for 2004: No indexation of growth funds Comm. direct purchase of 7,500 places ($20.5m) Indexation of base funding, terms and conditions apply (eg matching growth funds) Slide6:  C’wealth funding is 6.5% less than in 1997 (CPI adjusted). Commonwealth funding for VET Slide8:  Proportion of revenue by source The proportion of total operating revenue coming from the Commonwealth has fallen from 25% to 22.5%. The states’ contribution has fallen from 56.1% to 55.8%. VET system growth:  VET system growth Since 1997: Enrolments increased by 272,100, or 18.8% Annual hours increased by 78.1 million hours, or 26.8% REAL CONTRIBUTION TO VET COSTS PER STUDENT HOUR ($ per AHC):  REAL CONTRIBUTION TO VET COSTS PER STUDENT HOUR ($ per AHC) Change (%): Comm -26.3% States -18.6% Other -5.8% Total -18.1% Slide11:  Share of funding for Non-TAFE Providers $58.6m in 1995 $316m in 2003 79.9 % increase since 1997 Share fell from 6.7% in 2002 to 6.5% in 2003 Slide12:  Unmet Demand for TAFE Unmet demand for TAFE is increasing. 68% of those unable to gain a place in post school education and training sought access to VET. Unmet demand for TAFE was 3.5% of all those who did participate in TAFE in 2003. ANTA 2004 TAFE student places: 44,400 2000 48,700 2001 40,100 2002 44,100 2003 45,900 Total VET: 60,000 65,700 56,600 54,700 55,400 Other : 15,600 17,000 16,500 10,600 9,500 Slide13:  Impact of the Resource Pressures Concerns re quality: Schofield, 2000 Senate report. Higher class sizes, rationalisation and reductions in TAFE courses, cuts to student services, amalgamations and closures and colleges facing significant financial difficulties. The overall failure/withdrawal rate for students has increased from 13.7% in 1997 to 15.6% in 2003. NCVER 2004) Growth in precarious employment (but some recent moves back to more secure employment). Increased workload and stress for teachers: unpaid overtime equivalent to 6500 teachers. (Kronemann 2001) Skills shortages:  Skills shortages Unions and employers concerned: ACTU estimate a shortfall of 130,000 skilled workers over 5 years. Growth in new apprenticeships has been in areas like retail rather than trades. Industry-led, employer-subsidy driven approach has failed to address skills shortages. Complex causes – and solutions. (ACTU 6 pt plan.) Skills shortages are both real and a rationale for deregulatory ‘solutions’. The Coalition agenda in brief::  The Coalition agenda in brief: new federalism more control over state & territory activities through funding conditions and direct funding Privatisation user choice, tendering, third party access, encouraging privatisation Industrial relations attacks on worker rights and role of unions Election announcements (skills shortages skills shortages skills shortages skills shortages…):  Election announcements (skills shortages skills shortages skills shortages skills shortages…) Institute for Trades Skills Excellence Australian Technical Colleges Some specific measures re apprentices: tool kits, extension of Youth Allowance, pre-voc places in Group Training Companies, scholarships etc. post election: Abolition of ANTA Australian Technical Colleges:  Australian Technical Colleges 24 ATCs by 2008, $349m over 4 years Up to 300 select-entry students or 7,200 total Years 11& 12, academic and trade course, & school-based New Apprenticeship Need to be registered as schools and RTOs (or partnership arrangements) Industry led and endorsed, industry Chair of Governing Council Run autonomously by Principal, offer performance pay and AWAs Tendering by consortia States & territories required to provide school funding. Abolition of ANTA:  Abolition of ANTA Transfer of responsibility to DEST by July 2005 New Ministerial Council for VE (VE MINCO) Replacement of ANTA Board advice with new National Industry Skills Committee to provide advice to VE MINCO. New multi-lateral funding agreement with the states – national objectives, funding (and conditions). Bilateral agreements re performance levels and implementation of national priorities, can include additional conditions. New legislation needed to enable new structures and funding to proceed. Federal funding offer 2005-08:  Federal funding offer 2005-08 Reported: An ‘additional’ $174.7m over 3.5 years Basically redirected money – re-inclusion of VET Priority Places Program (put out to direct tender last year) & $3.8m p.a. from Indigenous Strategic Initiatives Program, plus indexation for 2004 and 2005. States required to match funds to deliver up to 116,400 new places by 2008– trades, skills shortages (eg child care), mature age, people with a disability. Federal conditions on funding ‘offer’:  Federal conditions on funding ‘offer’ Greater autonomy for Institutes, with AWAs and performance pay User Choice reform and expansion Implementation of ‘true’ competency based training by removing impediments in state based awards Third party access to facilities that get Comm. Infrastructure funding Adherence to the National Construction Code & Implementation Guidelines Development of a national fees policy to limit fee increases Joint funding pool for Indigenous Australians ($3.8m matched by states) April MINCO meeting:  April MINCO meeting ANTA MINCO met 15 April, failed to agree re future funding arrangements. Agreement to continue current funding until end 2005 (legislation required to establish new structures). Further meeting late May/early June (now 8 June). State & territory communiqué calling for increased investment in training & concern re the conditions. Department officers to report back to next MINCO re impact of Comm. proposals on availability and quality of training before an agreement is signed. Federal Budget:  Federal Budget Federal budget on 10 May funds election commitments re New Apprentices etc as expected. Funding for Welfare to work measures. ‘Additional’ funding offer for 2005-2008 now increased from $174.7m to $215m as a result of ‘welfare to work’ measures – $39m for 2006-08. (bulk is still Priority Places funding returned to states and indexation). Legislation ‘bombshell’:  Legislation ‘bombshell’ On 11 May, Government introduces Skilling Australia's Workforce Bill 2005 – lays out funding levels and the conditions which states and territories must agree to in order to get VET funding. Conditions on federal VET funding (1):  Conditions on federal VET funding (1) Conditions on funding include: Offer AWAs to all staff. Give more authority to Directors for recruitment and remuneration. Have performance management systems including performance pay and managing underperformance. Neither encourage or discourage union membership. Change practices and policies except where directly inconsistent with a current EBA/Award. Conditions on federal VET funding (2):  Conditions on federal VET funding (2) Increase entrepreneurialism & commercial activities. Fully comply with User Choice. Increase proportion of New Apprenticeships eligible for User Choice funding by 5% per year. Participate in establishing a national unit price band for each New Apprenticeship. Remove requirements in awards for time-based training. Make TAFE facilities available to third parties on a commercial basis. Have Annual State VET Plan approved by Federal Minister. No federal funding after July 2005?:  No federal funding after July 2005? The Commonwealth provides 29% of recurrent funding. (That’s about 450,500 student places). The legislation would allocate $605.8 million for July – December 2005. States and territories will cease to receive funding from the Commonwealth from July 2005 unless they agree in writing to the conditions set out in the Government’s legislation if it is passed. National Campaign 2005:  National Campaign 2005 What you can do: Support AEU campaign activities. Help build activism and recruitment. Keep Federal politicians informed about TAFE issues and concerns: invite them to your Institute. Inform local employers and unions about loss of course offerings & student waiting lists. Inform your local community, industries and students about TAFE issues. Keep informed. www. aeufederal.org.au Say ‘NO!’ to AWAs

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