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Issues and Funding in VET Gerald Burke Victoria and South Australia Group Training Conference Mt Gambier 4 June 2009 1 Issues Finance, quality and equity – VET and higher ed. Economic outlook – changing requirements of employers by level and field How much will supply need to expand National quality assurance International students, Critical Skills List, MODL and export revenues Developing a national skills strategy Transitions from VET and higher educ 2 Operating expense Education 2007-08 Universities TAFE Total Universities and TAFE GDP $ million % of GDP 15,235 1.35% 5,157 0.46% 20,392 1.80% 1,132,172 100 % 3 Govt recurrent expend VET per hour 2003 2004 2005 2006 2007 change 03-07 Australia 14.2 14.2 13.8 13.5 13.0 -8% NSW 14.2 14.5 13.4 13.4 12.6 -11% Vic 12.2 12.1 12.5 12.3 11.6 -5% SA 16.0 16.0 14.9 15.6 14.8 -8% 4 Income VET system Income of the VET system 2007, $ million South Australia Fee-for-service 50 12% Government Agencies 21 5% Other 14 3% Overseas Student Fees 15 4% Contracted overseas 0 0% Adult and Community Education 0 0% Ancillary Trading 8 2% Student Fees and Charges 24 6% Revenue from Government Total revenue 328 409 80% 100% Victoria 392 114 141 100 36 24% 7% 9% 6% 2% 0 36 59 0% 2% 4% 1,063 1,613 66% 100% 5 n PPP proposed spending $ million 2008-09 Revised Budget 2009-10 Budget 2010-11 2011-12 2012-13 469 515 438 484 477 6 Commonwealth non-RTO spending $ million Australian Apprenticeship Centres Employer incentives Australian Apprenticeship Access Program 2008-09 Revised Budget 2009-10 Budget 2010-11 188 195 200 817 895 894 155 223 180 7 Australia Population 0-14 15-64 65 + Total mill mill mill mill 2009 4.1 19% 14.6 67% 2.9 13% 21.7 2010 4.2 19% 14.8 67% 3.0 14% 22.0 2015 4.4 19% 15.6 66% 3.6 15% 23.6 2020 Increase 09-20 million 4.7 18% 16.4 65% 4.3 17% 25.3 0.5 1.8 1.3 3.6 8 Requirements from economic changes CEET trend projections October 2008 • • • • • • • Employment up10.6 million in 2008 to to 12.4 million in 2020 % with qualifications up from 60 per cent to 73 per cent % without Cert III+ falls from 46 per cent to 30 per cent– less than required by COAG. The numbers with quals grow from 6.4 mill to over 9.0 mill Allowing for net turnover this means 4.7 million quals Over half in VET despite slower growth in VET occupations Big expansion in requirements at Diploma level… 9 International students • DIAC changes to Critical Skills List • Review of MODL • Effects of international students on reputation of VET quals 10