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Commonwealth Tertiary Education Commission (Australia) (1986) Review of TAFE funding, Australian Government Publishing Service, Canberra

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The focus of the committee's discussions was on TAFE's ability to support the education and training needs associated with. For more than a decade, enrollments at TAFE have grown by more than 6 per cent a year and the Committee. The Committee fully agrees with the Prime Minister's recent statement that TAFE as the main provider of vocational education and.

PRINCIPLES OF FUNDING 118

PROPOSED FUTURE FUNDING ARRANGEMENTS 129

The guidelines also indicated that the Audit Committee would be established during the Commonwealth Tertiary. Rather, the Committee focused on the Commonwealth objectives to be pursued through TAFE and the funding arrangements by which these objectives could best be achieved. In the course of the review the committee referred extensively to previous official reports and to statistical and reference material of the Commonwealth Tertiary Education Commission.

A PROFILE OF TAFE

The proportion of total students in stream 3a (Basic Trade) courses who were full-time rose from 2 per cent in 1976 to almost 12 per cent in 1984; this is the most significant change among the individual streams and is primarily due to the increase in full-time internships. It is noteworthy that in 1984 Stream 3a (Basic Trade) courses only accounted for about 12 percent of the total. In contrast, Stream 6 courses (adult education) accounted for 34 per cent of total enrolments, but only 6 per cent of total contact hours and 6 per cent of total teaching effort.

Table 2.11 shows expenditure by these Departments on TAFE programs over the years 1982/83 to 1984/85.
Table 2.11 shows expenditure by these Departments on TAFE programs over the years 1982/83 to 1984/85.

COMMONWEALTH INPUTS TO TAPE Introduction

The distribution of the Commonwealth's fee refund allocation therefore bore little relation to the distribution of total TAFE activity across the States. Government's request by the Schools Commission and the Technical and Further Education Council of the CTEC. In the courses offered, particular emphasis is placed on the needs of the long-term unemployed.

3.136 Availability of the new award is subject to the States satisfying the Commonwealth of Tertiary Education. Evaluation of the programs is facilitated by the information provided in accordance with the agreements.

THE FUTURE CONTEXT FOR TAFE Introduction

The TAFE system will need to maintain this role through the provision of retraining for those in the workforce who have not had the benefit of a broad base. The government has also recognized the labor market needs of older groups in the community through a number of In the last section of this Chapter, the Committee. produced a total picture of a likely scenario for TAFE in the year 1990.

The Committee believes that this rate will be maintained for at least the next few years, with strong growth in certificate courses and continued growth in other full-time programs, accompanied by some changes in the course pattern for the reasons noted above. Because of the lack of comprehensive information, the Committee has assumed that enrollments in other regular studies will continue to represent the same proportion of the 15- to 19-year-old population in 1990 as in 1984. The Committee anticipates a slight decrease in numbers in this group as measures.

The Committee has projected enrollments for this group for 1990 on the basis that those in full-time employment will continue to enroll in part-time TAFE at the 1984 rate and that those who are unemployed or not in labor market, increasingly participated in TAFE courses. Commonwealth education, training and employment policies and programs will increase demand for TAFE entry in the coming years. It is important to note that the number in the 15-19 age group is expected to decrease by 80,000 over this two-year period.

This figure is only a quarter of the 1984 level and represents a reduction in the rate of.

COMMONWEALTH OBJECTIVES FOR TAPE AND PRINCIPLES OF FUNDING

OBJECTIVES Introduction

For reasons set out later (see paragraphs of either of the two main alternatives – that is, full financial responsibility for TAFE by the Commonwealth or the withdrawal of direct Commonwealth funding (except under fee-for-service arrangements) devolution In particular, the continued growth of the TAFE system will be essential to its success the "Priority One" strategy and many Commonwealth labor market programmes.

ERRATUM

PRINCIPLES OF FUNDING Introduction

The first of these options represents a radical departure from the existing partnership arrangement and, in the Committee's view, is not necessary for the achievement of the Commonwealth's objectives for TAFE. In addition, a fee-for-service scheme that channeled funds to TAFE through industry or individuals - an approach proposed by the Treasury Department and by DEIR in relation to the latter's labor market programs - would not be workable to achieve results that last longer . term objectives. involving educational and systems change. The so-called emphasis on "consumer sovereignty" would be biased. educational processes away from imparting broad adaptive skills at the job-specific end of the scale.

$1.15 million in 1984/85, representing less than 0.4 of one percent of the program value.). Commonwealth objectives in this regard require the continuation of direct capital, equipment and recurring grants of the type that have operated since 1974. Triennial funding should apply to Commonwealth grants to TAFE in circumstances where the nature of the program and the associated funding mechanism indicate such arrangements to be appropriate.

Commonwealth grants to TAFE having been in place since 1974, it will be clear that the Committee has no major reservations about the continued suitability of the Commonwealth/State partnership arrangement. Indeed, it is essential to build on the achievements of programs that have been operating over the past 10 years. However, as argued in Chapter 4, reduced growth rates cannot be expected in the near future; any reduced capital effort would be inconsistent with achieving the range of Commonwealth Government objectives that have been identified.

The other component of the equipment program addresses the acquisition of modern technology for instructional purposes.

PROPOSED FUTURE FUNDING ARRANGEMENTS Introduction

The maximum Commonwealth contribution must be determined by the Government each year for the following three years on the advice of CTEC. State contributions for matching purposes must be estimated for the program year based on the simple average of expenditures over the preceding three years. In view of this, the Committee proposes a modification of the Commonwealth equipment program, with effect from 1987, as follows:

-Linked grants should be distributed among States, with the advice of CTEC, according to agreed projections for enrollment growth. The Commonwealth's undertaking to reimburse the fees and, secondly, as ensuring direct recognition of the Commonwealth. contribution to increasing enrollments in TAFE. Grants should be conditional upon States agreeing on procedures for setting objectives for program components and monitoring and reporting performance.

Ultimately, however, the role of the CTEC is to provide detailed advice to the government on the appropriate level of funding for the proposed new start. In particular, the Committee suggests that CTEC should explore the possibility of merging this program with the New community-based component. The Committee considers that this arrangement should continue to apply in view of the overall contribution made by the Commonwealth to

For 1987 the program should be administered as a national fund and funds should be allocated on an advisory basis. However, the Committee believes that in order to consolidate commitment to the goals of the program, it is necessary for the program to be based on a. The committee proposes that the CTEC convene a special committee, which would also include representatives of the office.

OVERVIEW

The committee has therefore found it appropriate to assess the prospects for growth in the number of admissions to TAFE by making separate assessments for each of the two. The political significance of this is to ensure that TAFE has. capacity to accommodate an average annual increase in full-time and part-time enrollments for the 15-19 age group of around 7 percent per year over the next few years. Compared to the late 1970s, the incidence of unemployment for the 20-24 group has increased from around 40 to over 50 percent of total youth unemployment. important that youth strategies are not allowed to develop in a way that deprioritises the needs of older young people.

In recent years, full-time enrollment of 20-24-year-olds has grown at an average annual rate of 14.5 percent. and part-time enrollment with 7.1 per cent. The numbers in this age group of the general population are expected to decline, but the committee expects this demographic effect to be more than offset by the increases in participation that have been evident for some years. For the reasons stated in Chapter 4, the committee's 1990 scenario assumes an average annual increase in admissions for the 20-24 age group of around 8 per cent. per year, a rate similar to that recorded for the period 1981-1984.

Relatively few of these students study on a full-time basis with the major. about 96 percent) enrolled part-time. Enrollment growth for the older age group was at an average annual rate of 14.3 percent between 1981-1984. Future enrollments of this age group in TAFE could increase markedly, both through a further rise in the participation rate and the increase of almost 823,000 in this age cohort of the population between the demographic effect alone would generate an additional 38,000 enrollments by 1990.

Accordingly, the Committee's enrollment estimate for this group in 1990 is based on a much reduced growth rate in enrollment, from 14.3 percent per year.

Figure

Table 2.11 shows expenditure by these Departments on TAFE programs over the years 1982/83 to 1984/85.

References

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