Estimates of appropriations

Vote Tertiary Education - Education and Workforce Sector - Estimates 2019/20

Vote Tertiary Education#

APPROPRIATION MINISTER(S): Minister of Education (M26)

APPROPRIATION ADMINISTRATOR: Ministry of Education

RESPONSIBLE MINISTER FOR MINISTRY OF EDUCATION: Minister of Education

Overview of the Vote#

The Minister of Education is responsible for appropriations in Vote Tertiary Education for the 2019/20 financial year covering the following:

  • a total of nearly $17 million for services from the Ministry of Education
  • a total of just over $63 million for services from the Tertiary Education Commission
  • a total of nearly $33 million for services from Education New Zealand
  • a total of nearly $2,929 million tuition and industry training subsidies and research funding provided to tertiary education organisations, funding to help universities recruit world-leading entrepreneurial academics, and services from the adult and community education sector and other non-departmental providers
  • a total of just over $346 million for first year fees-free study for eligible students, apprentices and trainees
  • a total of over $20 million for tertiary scholarships, international education and other grants, and
  • a total of $80 million for capital grants to the sector to support the post-earthquake rebuild of the Lincoln University and provide financial support to the Unitec Institute of Technology.

Details of these appropriations are set out in Parts 2-4.

Details of Appropriations and Capital Injections#

Annual Appropriations and Forecast Permanent Appropriations#

  2018/19 2019/20
Titles and Scopes of Appropriations by Appropriation Type Final
Budgeted
$000
Estimated
Actual
$000
Budget
$000

Non-Departmental Output Expenses

     

Access to Tertiary Education (M26)

This appropriation is limited to improving access to tertiary education and training.
24,159 22,757 25,549

Administration of and Support for the Tertiary Education and Careers Systems (M26)

This appropriation is limited to giving effect to the Tertiary Education Strategy by effectively investing in, monitoring, informing and influencing the tertiary education and careers systems, managing the Crown's ownership interest in tertiary education institutions, and providing advice and support to Ministers.
69,199 69,199 63,158

Centres of Research Excellence (M26)

This appropriation is limited to the purchase of cooperative and collaborative tertiary research in areas of research strength in the tertiary education sector through the contestable Centres of Research Excellence Fund.
49,800 49,800 49,800

International Education Programmes (M26)

This appropriation is limited to delivery of services in respect of international education, including promotion, information, research and professional development, both in New Zealand and overseas, for the purpose of delivering an excellent student experience, achieving sustainable growth and developing global citizens.
34,564 34,564 32,797

Tertiary Education Research and Research-Based Teaching (M26)

This appropriation is limited to funding research and research-based teaching on the basis of measured research quality in tertiary education organisations and supporting Wananga research capability.
326,500 326,500 318,750

Tertiary Sector / Industry Collaboration Projects (M26)

This appropriation is limited to funding activities that improve the relevance to industry of tertiary education provision.
27,805 26,830 27,332

University-led Innovation (M26)

This appropriation is limited to supporting universities to attract entrepreneurial academics to drive collaboration between universities and established and emerging businesses.
5,772 5,091 9,979

Total Non-Departmental Output Expenses

537,799 534,741 527,365

Benefits or Related Expenses

     

Awards for Outbound New Zealand Students (M26)

This appropriation is limited to awards granted to provide assistance to scholars, researchers and teachers to undertake placements abroad and to participate in reciprocal education exchange arrangements with partner countries in selected areas of priority study, teaching and research.
5,040 3,984 3,984

Scholarships for Inbound International Students (M26)

This appropriation is limited to scholarships available to international students wishing to study in New Zealand.
800 800 600

Tertiary Scholarships and Awards (M26)

This appropriation is limited to providing scholarships for tertiary students and other awards in the tertiary sector, and the provision of scholarships and bursaries to Maori and Pasifika students. It includes training assistance under Queen Elizabeth II Study Awards and recognition of outstanding tertiary education teachers.
15,568 15,568 15,885

Support to Apprentices (M26)

This appropriation is limited to payments to New Zealand Apprentices and other participants in workplace-based training, including Maori and Pasifika Trades Trainees, towards their tools and other training related costs.
108 108 -

Total Benefits or Related Expenses

21,516 20,460 20,469

Non-Departmental Other Expenses

     

Impairment of Loans to Tertiary Education Institutions (M26)

This appropriation is limited to impairment expenses associated with Crown decisions about repayment of existing Crown loans to tertiary education institutions.
35,000 35,000 -

Total Non-Departmental Other Expenses

35,000 35,000 -

Non-Departmental Capital Expenditure

     

Support for Lincoln University (M26)

This appropriation is limited to the rebuild of the science facilities at Lincoln University.
- - 65,000

Support for Unitec Institute of Technology (M26)

This appropriation is limited to providing a loan facility for Unitec to support its cash flow and manage normal operations and restructuring costs.
35,000 35,000 15,000

Support for Tai Poutini Polytechnic (M26)

This appropriation is limited to a capital injection into Tai Poutini Polytechnic to support its cash flow.
2,050 2,050 -

Support for the University of Canterbury (M26)

This appropriation is limited to the rebuild of the Science and Engineering Facilities at the University of Canterbury.
50,000 50,000 -

Support for Whitireia New Zealand (M26)

This appropriation is limited to providing a capital injection for Whitireia New Zealand to support its cash flow and manage normal operations and organisational change.
15,000 15,000 -

Total Non-Departmental Capital Expenditure

102,050 102,050 80,000

Multi-Category Expenses and Capital Expenditure

     

Stewardship of the Tertiary Education System MCA (M26)

The single overarching purpose of this appropriation is to provide services that contribute towards a well-functioning tertiary education system.
15,727 15,727 16,678

Departmental Output Expenses

     

Policy Advice

This category is limited to the provision of advice (including second opinion advice and contributions to policy advice led by other agencies) to support decision-making by Ministers on Tertiary Education and international education related matters.
7,171 7,171 6,821

Research, Data Analysis and Monitoring

This category is limited to the production and dissemination of research and data analysis, monitoring and reporting on tertiary education at a system-wide level, and the provision of services (other than policy advice) to support the work of other agencies and Ministers in discharging their responsibilities for tertiary education and international education related matters.
8,556 8,556 9,857

Tertiary Tuition and Training MCA (M26)

The single overarching purpose of this appropriation is to fund tertiary tuition and training that leads to improvements in New Zealanders' skill levels.
2,622,598 2,622,598 2,843,408

Non-Departmental Output Expenses

     

Community Education

This category is limited to funding for adult and community education and literacy, numeracy and English language provision.
71,834 71,834 74,566

Tertiary Education: Student Achievement Component

This category is limited to funding for teaching and learning services for enrolled students in approved courses at tertiary education organisations to achieve recognised tertiary qualifications.
1,974,205 1,974,205 2,115,387

Training for Designated Groups

This category is limited to the purchasing and arranging of training linked to the New Zealand Qualifications Framework and the purchase of both on-job and off-job training places, including delivery of fully or partially funded training places and other industry-training related projects.
276,324 276,324 307,323

Non-Departmental Other Expenses

     

Fees-free Payments

This category is limited to ensuring fees-free study for eligible students, apprentices and trainees.
300,235 300,235 346,132

Total Multi-Category Expenses and Capital Expenditure

2,638,325 2,638,325 2,860,086

Total Annual Appropriations and Forecast Permanent Appropriations

3,334,690 3,330,576 3,487,920

Supporting Information#

Part 1 - Vote as a Whole#

1.1 - New Policy Initiatives#

Policy Initiative Appropriation 2018/19
Final Budgeted
$000
2019/20
Budget
$000
2020/21
Estimated
$000
2021/22
Estimated
$000
2022/23
Estimated
$000
Computers in Homes

Tertiary Tuition and Training MCA

         
  Community Education 1,000 1,000 - - -
  Non-Departmental Output Expense          
Crown Support for Unitec Institute of Technology and Whitireia New Zealand

Impairment of Loans to Tertiary Education Institutions

35,000 - - - -
  Non-Departmental Other Expense          
 

Support for Unitec Institute of Technology

35,000 15,000 - - -
  Non-Departmental Capital Expenditure          
 

Support for Whitireia New Zealand

15,000 - - - -
  Non-Departmental Capital Expenditure          
Drawdown the Wananga Research Aspirations Contingency

Tertiary Education Research and Research-Based Teaching

10,000 2,250 4,500 4,500 2,250
  Non-Departmental Output Expense          
Export Education Levy: Addressing Pressures and Consultation on Proposed Increases (see also Vote Education in the Education and Workforce Sector)

International Education Programmes

4,000 2,000 - - -
  Non-Departmental Output Expense          
Extension of Student Loans Borrowing Limits (see also Vote Revenue in the Finance and Government Administration Sector and Vote Social Development in the Social Services and Community Sector)

Tertiary Tuition and Training MCA

         
  Tertiary Education: Student Achievement Component (3,757) (3,877) (4,220) (4,442) (4,682)
  Non-Departmental Output Expense          
Home-Based ECE Review - Improving the Quality of Home-Based Early Childhood Education (see also Vote Revenue in the Finance and Government Administration Sector and Vote Social Development in the Social Services and Community Sector)

Tertiary Tuition and Training MCA

         
  Tertiary Education: Student Achievement Component 227 608 1,803 2,004 623
  Non-Departmental Output Expense          
 

Tertiary Sector / Industry Collaboration Projects

- 500 500 - -
  Non-Departmental Output Expense          
Increasing Tertiary Tuition and Training Subsidies - Maintaining Quality Tertiary Education

Tertiary Tuition and Training MCA

         
  Community Education - 696 1,393 1,393 1,393
  Non-Departmental Output Expense          
  Tertiary Education: Student Achievement Component - 18,833 37,665 37,665 37,665
  Non-Departmental Output Expense          
  Training for Designated Groups - 2,582 5,164 5,164 5,164
  Non-Departmental Output Expense          
Maori and Pasifika Trades Training: Improving Learner Support from 2019

Tertiary Sector / Industry Collaboration Projects

952 2,762 1,904 1,904 1,904
  Non-Departmental Output Expense          
 

Support to Apprentices

(2,082) (2,190) (2,190) (2,190) (2,190)
  Benefit or Related Expense          
Programme for International Assessment of Adult Competencies

Stewardship of the Tertiary Education System MCA

         
  Research, Data Analysis and Monitoring          
  Departmental Output Expense - 1,300 422 3,777 131
 

Tertiary Tuition and Training MCA

         
  Training for Designated Groups (5,630) - - - -
  Non-Departmental Output Expense          
Reform of Vocational Education

Administration of and Support for the Tertiary Education and Careers Systems

5,000 - - - -
  Non-Departmental Output Expense          
 

Tertiary Tuition and Training MCA

         
  Fees-free Payments (5,000) - - - -
  Non-Departmental Other Expense          
Refugee Quota Increase: Drawdown Contingency for Increased Settlement Services (see also Vote Education and Vote Labour Market in the Education and Workforce Sector, Vote Business, Science and Innovation in the Economic Development and Infrastructure Sector, Vote Health in the Health Sector, Vote Housing and Urban Development, Vote Social Development and Vote Oranga Tamariki in the Social Services and Community Sector, and Vote Internal Affairs in the Finance and Government Administration Sector)

Tertiary Tuition and Training MCA

         
  Community Education - - 1,157 1,688 3,220
  Non-Departmental Output Expense          
Reprioritisation of Funding - 2018/19 Underspends in Tertiary Education Commission (TEC) Administered Funding

Access to Tertiary Education

(1,390) - - - -
  Non-Departmental Output Expense          
Reprioritisation of Funding - Accounting Treatment of Recovery Exemption Expiration

Tertiary Tuition and Training MCA

         
  Tertiary Education: Student Achievement Component (95,000) - - - -
  Non-Departmental Output Expense          
Reprioritisation of Funding - Entrepreneurial Universities

University-led Innovation

(5,061) (855) - (650) (5,641)
  Non-Departmental Output Expense          
Reprioritisation of Funding - Fees-Free Tertiary Education and Training

Tertiary Tuition and Training MCA

         
  Fees-free Payments (49,465) (41,968) (42,854) (33,484) (29,361)
  Non-Departmental Other Expense          
Reprioritisation of Funding - Information and Communication Technology (ICT) Graduate Schools

Tertiary Sector / Industry Collaboration Projects

(424) (161) (271) (271) (271)
  Non-Departmental Output Expense          
 

Tertiary Tuition and Training MCA

         
  Tertiary Education: Student Achievement Component (645) (978) (3,009) (5,031) (5,031)
  Non-Departmental Output Expense          
Reprioritisation of Funding - International Teacher Exchanges to Support Foreign Language Learning

Awards for Outbound New Zealand Students

- (1,056) (1,056) (1,056) (1,056)
  Benefit or Related Expense          
Reprioritisation of Funding - New Zealand International Doctoral Research Scholarships

Scholarships for Inbound International Students

- (200) (500) (800) (800)
  Benefit or Related Expense          
Reprioritisation of Funding - Tertiary Tuition and Training Multi-Category Appropriation 2018/19 Underspends

Tertiary Tuition and Training MCA

         
  Community Education (2,239) - - - -
  Non-Departmental Output Expense          
  Tertiary Education: Student Achievement Component (28,304) - - - -
  Non-Departmental Output Expense          
  Training for Designated Groups (29,457) - - - -
  Non-Departmental Output Expense          
Streamlining Secondary-Tertiary Learning Opportunities for 2019 (see also Vote Education in the Education and Workforce Sector)

Tertiary Tuition and Training MCA

         
  Training for Designated Groups (3,750) (7,500) (7,500) (7,500) (7,500)
  Non-Departmental Output Expense          
Teacher Supply - Continuing to Increase the Levels of Teacher Supply for the Future (see also Vote Education in the Education and Workforce Sector)

Tertiary Tuition and Training MCA

         
  Tertiary Education: Student Achievement Component - 2,624 5,268 7,316 9,364
  Non-Departmental Output Expense          
Tuition Subsidy Increase for Levels 3 and Above

Tertiary Tuition and Training MCA

         
  Tertiary Education: Student Achievement Component 15,843 - - - -
  Non-Departmental Output Expense          
Total Initiatives   (110,182) (8,630) (1,824) 9,987 5,182
Summary of Financial Activity
  2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23
  Actual
$000
Actual
$000
Actual
$000
Actual
$000
Final Budgeted
$000
Estimated
Actual
$000
Departmental
Transactions
Budget
$000
Non-
Departmental
Transactions
Budget
$000
Total
Budget
$000
Estimated
$000
Estimated
$000
Estimated
$000

Appropriations

                       
Output Expenses 428,650 449,124 476,598 515,850 537,799 534,741 - 527,365 527,365 525,833 524,558 517,317
Benefits or Related Expenses 33,913 16,190 17,612 17,837 21,516 20,460 N/A 20,469 20,469 20,168 19,868 19,868
Borrowing Expenses - - - - - - - - - - - -
Other Expenses 1,377 - - - 35,000 35,000 - - - - - -
Capital Expenditure 117,870 85,825 19,100 6,450 102,050 102,050 - 80,000 80,000 15,000 5,000 -
Intelligence and Security Department Expenses and Capital Expenditure - - - - - - - N/A - - - -
Multi-Category Expenses and Capital Expenditure (MCA)                        
Output Expenses 2,423,587 2,475,854 2,478,460 2,433,988 2,338,090 2,338,090 16,678 2,497,276 2,513,954 2,561,600 2,579,326 2,577,639
Other Expenses - - - 129,982 300,235 300,235 - 346,132 346,132 364,146 384,216 388,339
Capital Expenditure - - - - - - N/A - - - - -

Total Appropriations

3,005,397 3,026,993 2,991,770 3,104,107 3,334,690 3,330,576 16,678 3,471,242 3,487,920 3,486,747 3,512,968 3,503,163

Crown Revenue and Capital Receipts

                       
Tax Revenue - - - - - - N/A - - - - -
Non-Tax Revenue 14,736 15,478 8,296 8,760 14,746 14,746 N/A 1,122 1,122 1,122 1,122 1,122
Capital Receipts - - - - - - N/A - - - - -

Total Crown Revenue and Capital Receipts

14,736 15,478 8,296 8,760 14,746 14,746 N/A 1,122 1,122 1,122 1,122 1,122

Note - where restructuring of the vote has occurred then, to the extent practicable, prior years information has been restated as if the restructuring had occurred before the beginning of the period covered. In this instance Total Appropriations for the Budgeted and Estimated Actual year may not equal Total Annual Appropriations and Forecast Permanent Appropriations and Multi-Year Appropriations in the Details of Appropriations and Capital Injections.

Adjustments to the Summary of Financial Activity Table Due to Vote Restructuring

There have been no restructuring adjustments to prior year's information in the Summary of Financial Activity table.

Significant changes in departmental and non-departmental appropriations related to tertiary and international education between 2014/15 and 2022/23 are discussed briefly below.

Departmental Output Expenses

Movements in departmental output expenses largely relate to:

  • participation in the Organisation for Economic Co-operation and Development (OECD) Programme for International Assessment of Adult Competencies from 2012/13 to 2015/16 and from 2019/20 to 2022/23, and
  • implementation of the Government's first-year fees-free policy from 1 January 2018.

The departmental output expenses were transferred to a multi-category appropriation from 2016/17.

Non-Departmental Output Expenses

Most tertiary education funding is through non-departmental output expenses. Three significant non-departmental output expenses were transferred to the Tertiary Tuition and Training multi-category appropriation from 2016/17.

The major changes to these appropriations over the trend period are principally owing to:

  • ensuring the country's skills base supports the needs of industry and encourages innovation - strengthening provision in areas of specific priority, such as engineering, science, agriculture and health sciences, with targeted increases to relevant tuition subsidies, provision for about 5,500 more apprentices by 2020, and the establishment of Information and Communication Technology Graduate Schools
  • additional funding for research, including increasing the Performance-Based Research Fund from 2018 and increasing the number of Centres of Research Excellence (CoRE) from 2015, including the establishment of one focused on Maori research in 2016
  • additional funding for International Connections for New Zealanders, including Centres of Asia-Pacific Excellence from 2017
  • funding from 2017 to help New Zealand universities recruit world-leading entrepreneurial academics
  • integrating Careers New Zealand into the Tertiary Education Commission from 2017/18
  • implementation of first-year fees-free policy from 1 January 2018, and
  • additional English language course provision following the response to the Syrian refugee crisis and an increased quota of refugees to 1,000 places from 2018/19 and to 1,500 per year from July 2020.
Benefits or Related Expenses

Changes in benefits or related expenses are largely related to:

  • end of apprenticeships 're-boot' programme in 2014/15
  • addressing pressures on Medical Trainee Intern Grants from 2015/16
  • recategorising the Prime Minister's Scholarships for Asia from non-departmental output expense International Education Programmes, expanding the fund and establishing the Prime Minister's Scholarships for other regions from 2016/17, and
  • the transfer of the Maori and Pasfika Trades Training (MPTT) Tools Subsidy fund to the MPTT Consortium fund (in non-departmental output expense Tertiary Sector/Industry Collaboration Projects) from 2019.
Non-Departmental Other Expenses

Significant changes in these appropriations mainly reflect:

  • making the first year of tertiary education or training fees-free for new students from 1 January 2018 (under the Tertiary Tuition and Training multi-category appropriation), and
  • provision for impairment of the concessionary loan by the Crown to Unitec Institute of Technology in 2018/19.
Non-Departmental Capital Expenditure

The major changes in non-departmental capital expenditure relate mainly to:

  • assisting Christchurch tertiary education institutions to rebuild facilities after the impact of the 2010 and 2011 earthquakes, and
  • financial support for Tai Poutini Polytechnic from 2016/17 to 2018/19, Whitireia New Zealand in 2018/19 and Unitec Institute of Technology in 2018/19 and 2019/20.
Crown Revenue

Significant changes between years mainly reflect recoveries of surplus grants funding from the Tertiary Education Commission and the tertiary education sector.

1.5 - Relationship between Individual Appropriations and the Work Programmes#

Long term outcomes and objectives Contributing to one or two objectives Contributing to all objectives

The education system is relevant and reaches all children and students

  • High quality regulatory, funding and institutional arrangements
  • High quality curriculum and qualifications frameworks
  • High quality infrastructure
  • Information and data enabling good decision-making
  • Support for Lincoln University (M26)
  • Support for the Unitec Institute of Technology (M26)
  • Access to Tertiary Education (M26)
  • Administration of and Support for the Tertiary Education and Careers Systems (M26)
  • International Education Programmes (M26)
  • Tertiary Scholarships and Awards (M26)
  • Stewardship of the Tertiary Education System MCA (M26)
  • Tertiary Tuition and Training MCA (M26)

Every child and student achieves educational success

  • Informed and supportive parents, whanau, iwi, communities and employers
  • Effective teaching and educational leadership
  • High participation and engagement
  • All learners achieving and progressing to their potential
 

New Zealanders have skills and knowledge for work and life

  • Skills match labour market needs
  • Socially and culturally confident and competent people
  • Internationally credible skills and institutions
  • High quality research and innovation
  • Centres of Research Excellence (M26)
  • Tertiary Education Research and Research-Based Teaching (M26)
  • Tertiary Sector / Industry Collaboration Projects (M26)
  • University-led Innovation (M26)
  • Awards for Outbound New Zealand Students (M26)
  • Scholarships for Inbound International Students (M26)

Part 3 - Details of Non-Departmental Appropriations#

3.1 - Non-Departmental Output Expenses#

Access to Tertiary Education (M26)
Scope of Appropriation
This appropriation is limited to improving access to tertiary education and training.
Expenses
  2018/19 2019/20
  Final Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 24,159 22,757 25,549
Components of the Appropriation
  2018/19 2019/20
  Final Budgeted
$000
Estimated Actual
$000
Budget
$000
Equity Loading 17,149 15,890 17,149
Maori and Pasifika Trades Training Top Up 7,010 6,867 8,400
Total 24,159 22,757 25,549
What is Intended to be Achieved with this Appropriation

This appropriation is intended to improve access to tertiary education and training for Tertiary Education Strategy priority learners.

How Performance will be Assessed and End of Year Reporting Requirements
  2018/19 2019/20
Assessment of Performance Final Budgeted
Standard
Estimated
Actual
Budget
Standard
Maori and Pasifika Trades Training
     

Percentage of learners per calendar year progressing from Maori and Pasifika Trades Training to New Zealand Apprenticeships and managed apprenticeships, other industry training at Level 3 and above, or further study at New Zealand Qualifications Framework Level 4 and above (see Notes 1 and 2).

Improve on last year's result Not improved on last year's result Improve on previous year's result

Note 1 - 2018/19 Final Budgeted Standard and 2018/19 Estimated Actual refer to the 2018 calendar year. 2019/20 Budget Standard refers to the 2019 calendar year.

Note 2 - It is estimated that the 2018 percentage of learners progressing to trades-related employment, other industry training or further study will not improve - 2017 (41%), Estimated Actual 2018 (37%).

End of Year Performance Reporting

Performance information for this appropriation will be reported by the Tertiary Education Commission in its annual report.

Service Providers
Provider 2018/19
Final Budgeted
$000
2018/19
Estimated Actual
$000
2019/20
Budget
$000
Expiry of
Resourcing
Commitment

Crown Entities

       
Universities (8) 10,553 10,087 12,323 Investment plans up to 3 years
Wananga (3) 2,067 1,940 2,322 Investment plans up to 3 years
Institutes of Technology and Polytechnics (16) 10,169 8,846 8,702 Investment plans up to 3 years

Non-Government Organisations

       
Private Training Establishments 1,370 1,884 2,202 Investment plans up to 3 years

Total

24,159

22,757

25,549

 

The table above shows the main service providers for this appropriation.

Current and Past Policy Initiatives
Policy Initiative Year of
First
Impact
2018/19
Final Budgeted
$000
2019/20
Budget
$000
2020/21
Estimated
$000
2021/22
Estimated
$000
2022/23
Estimated
$000

Current Government

           
Reprioritisation of Funding - 2018/19 Underspends in Tertiary Education Commission (TEC) Administered Funding 2018/19 (1,390) - - - -

Previous Government

           
Maori and Pasifika Trades Training Contingency Funding Drawdown 2016/17 2,400 2,400 2,400 2,400 2,400
Conditions on Use of Appropriation
Reference Conditions
Section 159L Education Act 1989 Funding is allocated by the Tertiary Education Commission in accordance with funding determinations issued by the Minister of Education.

 


 

Administration of and Support for the Tertiary Education and Careers Systems (M26)
Scope of Appropriation
This appropriation is limited to giving effect to the Tertiary Education Strategy by effectively investing in, monitoring, informing and influencing the tertiary education and careers systems, managing the Crown's ownership interest in tertiary education institutions, and providing advice and support to Ministers.
Expenses
  2018/19 2019/20
  Final Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 69,199 69,199 63,158
What is Intended to be Achieved with this Appropriation

This appropriation is intended to ensure New Zealand has effective and well-managed tertiary education and careers systems.

How Performance will be Assessed and End of Year Reporting Requirements
  2018/19 2019/20
Assessment of Performance Final Budgeted
Standard
Estimated
Actual
Budget
Standard

Percentage of Tertiary Education Commission-funded tertiary education organisations who agree that auditing processes were made transparent and information was accessible throughout the process.

Baseline year Baseline year Improve on previous year's result

Percentage of tertiary education organisations who agree that the Tertiary Education Commission's information products, tools and plan guidance were useful to prepare their investment plans.

Baseline year Baseline year Improve on previous year's result

Percentage of careers system stakeholders who agree that the Tertiary Education Commission online information and tools are accessible and useful.

New measure New measure Improve on previous year's result

Percentage of payments the Tertiary Education Commission makes to tertiary education organisations that are accurate and timely.

100% 100% 100%

The overall satisfaction rating given by the Minister of Education on the Tertiary Education Commission (see Note 1).

Maintain or increase Maintain or increase Maintain or increase

Note 1 - The survey measures Ministers' satisfaction with the quality of advice on a scale from 1 to 10, where 1 means unsatisfied and 10 means extremely satisfied. The 2017/18 result was 8 out of 10.

End of Year Performance Reporting

Performance information for this appropriation will be reported by the Tertiary Education Commission in its annual report.

Service Providers
Provider 2018/19
Final Budgeted
$000
2018/19
Estimated Actual
$000
2019/20
Budget
$000
Expiry of
Resourcing
Commitment

Crown Entities

       
Tertiary Education Commission 69,090 69,090 63,049 Ongoing

Non-Government Organisations

       
Maori Education Trust 109 109 109 Ongoing

Total

69,199

69,199

63,158

 

The table above shows the main service providers for this appropriation.

Current and Past Policy Initiatives
Policy Initiative Year of
First
Impact
2018/19
Final Budgeted
$000
2019/20
Budget
$000
2020/21
Estimated
$000
2021/22
Estimated
$000
2022/23
Estimated
$000

Current Government

           
Reform of Vocational Education 2018/19 5,000 - - - -
Financial Impacts of the 100 Days Tertiary Education Package 2017/18 4,087 3,720 3,720 3,720 3,720

Previous Government

           
Funding to Support the Changes to the Careers System 2017/18 14,049 13,500 13,500 13,500 13,500
International Connections for New Zealanders 2016/17 125 - 125 - -
Engineering Education to Employment 2016/17 400 400 - - -
Share of Costs for Budget 2015 Whole-of-Government Initiatives 2015/16 (54) (54) (54) (54) (54)
Reasons for Change in Appropriation

The $6.041 million decrease in this appropriation for 2019/20 is mainly due to:

  • provision for scoping of the reform of vocational education in 2018/19 ($5 million)
  • funds transferred from Vote Education in 2018/19 for a one year increase to support the changes to the careers system ($549,000), and
  • reduced provision for administration of first-year fees-free tertiary education and training ($367,000).
Centres of Research Excellence (M26)
Scope of Appropriation
This appropriation is limited to the purchase of cooperative and collaborative tertiary research in areas of research strength in the tertiary education sector through the contestable Centres of Research Excellence Fund.
Expenses
  2018/19 2019/20
  Final Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 49,800 49,800 49,800
What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve the delivery of high quality research by purchasing cooperative and collaborative research in areas of research strength in the tertiary education sector, with a focus on Tertiary Education Strategy priorities.

How Performance will be Assessed and End of Year Reporting Requirements
  2018/19 2019/20
Assessment of Performance Final Budgeted
Standard
Estimated
Actual
Budget
Standard

Centres of Research Excellence annual reports are reviewed and appropriate action is taken (see Notes 1 and 2).

Achieved Achieved Achieved

Note 1 - 2018/19 Final Budgeted Standard and 2018/19 Estimated Actual refer to the 2018 calendar year. 2019/20 Budget Standard refers to the 2019 calendar year.

Note 2 - Annual reports are reviewed against milestones and key performance indicators set in research plans. Reviews look at progress on delivery towards policy objectives and long-term outcomes.

End of Year Performance Reporting

Performance information for this appropriation will be reported by the Tertiary Education Commission in its annual report.

Service Providers
Provider 2018/19
Final Budgeted
$000
2018/19
Estimated Actual
$000
2019/20
Budget
$000
Expiry of
Resourcing
Commitment

Crown Entities

       
Tertiary Education Institution hosts of Centres of Research Excellence (varies between 7-11 during the period) 49,800 49,800 49,800 1 January 2021

Total

49,800

49,800

49,800

 
International Education Programmes (M26)
Scope of Appropriation
This appropriation is limited to delivery of services in respect of international education, including promotion, information, research and professional development, both in New Zealand and overseas, for the purpose of delivering an excellent student experience, achieving sustainable growth and developing global citizens.
Expenses
  2018/19 2019/20
  Final Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 34,564 34,564 32,797
What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve enhanced social, cultural and economic benefits to New Zealand through New Zealand international education activities.

How Performance will be Assessed and End of Year Reporting Requirements
  2018/19 2019/20
Assessment of Performance Final Budgeted
Standard
Estimated
Actual
Budget
Standard

The economic value from New Zealand's international education sector (see Note 1).

$4,600 million $5,100 million $5,100 million

Percentage of facilitated customers that agree Education New Zealand's services and support have added value (see Note 2).

At least 75% At least 75% At least 75%

The percentage of international students who were satisfied or very satisfied with their overall experience (see Note 3).

At least 85% At least 85% 88% - 95%

The percentage of international students enrolled to study outside Auckland (see Note 4).

Increase compared to 2017 Increase compared to 2017 Increase compared to 2018

Note 1 - The 2025 target is $6,000 million (International Education Strategy, Goal 2).

Note 2 - 'Facilitated customers' are large education providers, peak bodies and regional partners that Education New Zealand business development managers work actively with to provide growth-focused services and targeted support.

Note 3 - This measure applies to any sectors surveyed in 2019/20 as not all sectors may be surveyed every year. Recent sector results are published in Education New Zealand's annual report.

Note 4 - 2018/19 Estimated Actual refers to the 2018 calendar year.

End of Year Performance Reporting

Performance information for this appropriation will be reported by Education New Zealand in its annual report.

Current and Past Policy Initiatives
Policy Initiative Year of
First
Impact
2018/19
Final Budgeted
$000
2019/20
Budget
$000
2020/21
Estimated
$000
2021/22
Estimated
$000
2022/23
Estimated
$000

Current Government

           
Export Education Levy: Addressing Pressures and Consultation on Proposed Increases 2018/19 4,000 2,000 - - -
Reprioritisation - Education New Zealand Contribution to the Kea Network, New Zealand Story and Chair of Malay Studies 2018/19 (175) (275) (275) (275) (275)

Previous Government

           
Strengthening the Foundations for Sustainable Growth of International Education 2017/18 1,700 1,700 1,700 1,700 1,700
Reasons for Change in Appropriation

The $1.767 million decrease in this appropriation for 2019/20 is mainly due to a reduced provision for temporary advances to the Export Education Levy Fund (funded by capital withdrawals from the Ministry of Education) to meet unexpectedly high international student reimbursement costs ($2 million).

Tertiary Education Research and Research-Based Teaching (M26)
Scope of Appropriation
This appropriation is limited to funding research and research-based teaching on the basis of measured research quality in tertiary education organisations and supporting Wananga research capability.
Expenses
  2018/19 2019/20
  Final Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 326,500 326,500 318,750
Components of the Appropriation
  2018/19 2019/20
  Final Budgeted
$000
Estimated Actual
$000
Budget
$000

Performance-Based Research Fund

     
- Quality Evaluation 173,250 173,250 173,250
- Research Degree Completions 78,750 78,750 78,750
- External Research Income 63,000 63,000 63,000
Wananga Research Capability Fund 1,500 1,500 3,750
Grant under section 321 of the Education Act to Te Wananga o Raukawa 10,000 10,000 -
Total 326,500 326,500 318,750
What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve an increase in, or maintain the quality of, research and research-based teaching and learning and to improve investment in research within the tertiary sector.

How Performance will be Assessed and End of Year Reporting Requirements
  2018/19 2019/20
Assessment of Performance Final Budgeted
Standard
Estimated
Actual
Budget
Standard

Research degree completions (measured by Performance-Based Research Fund (PBRF)-eligible research degree completions) (see Note 1).

Previous year actual ± 5% Previous year actual ± 5% Previous year actual ± 5%

Percentage increase in amount of external research income for PBRF-eligible providers (see Note 1).

2% 3% - 5% 3% - 5%

Note 1 - 2018/19 Final Budgeted Standard and 2018/19 Estimated Actual refer to the 2018 calendar year. 2019/20 Budget Standard refers to the 2019 calendar year.

End of Year Performance Reporting

Performance information for this appropriation will be reported by the Tertiary Education Commission in its annual report.

Service Providers
Provider 2018/19
Final Budgeted
$000
2018/19
Estimated Actual
$000
2019/20
Budget
$000
Expiry of
Resourcing
Commitment

Crown Entities

       
Universities (8) 306,686 306,686 306,435 Investment plans up to 3 years
Wananga (3) 12,032 12,032 4,267 Investment plans up to 3 years
Institutes of Technology and Polytechnics (16) 7,269 7,269 7,528 Investment plans up to 3 years

Non-Government Organisations

       
Private Training Establishments 513 513 520 Investment plans up to 3 years

Total

326,500

326,500

318,750

 

The table above shows the main service providers for this appropriation.

Current and Past Policy Initiatives
Policy Initiative Year of
First
Impact
2018/19
Final Budgeted
$000
2019/20
Budget
$000
2020/21
Estimated
$000
2021/22
Estimated
$000
2022/23
Estimated
$000

Current Government

           
Wananga Research Aspirations 2018/19 10,000 2,250 4,500 4,500 2,250

Previous Government

           
Increasing the Performance-Based Research Fund 2017/18 15,000 15,000 15,000 15,000 15,000
Reasons for Change in Appropriation

The $7.750 million decrease in this appropriation is due to a combination of:

  • a grant under section 321 of the Education Act 1989 to Te Wananga o Raukawa in 2018/19 ($10 million decrease), and
  • increasing the Wananga Research Capability Fund by $4.500 million per annum for three years only beginning from the 2020 academic year ($2.250 million increase).
Conditions on Use of Appropriation
Reference Conditions
Cabinet decision Funding in this appropriation is provided as part of the bulk grant to tertiary education organisations to recognise research performance. All degree-awarding tertiary education organisations are eligible for funding.
  The Performance-Based Research Fund is allocated on the basis of three measures:
 
  • Quality Evaluation - a periodic peer assessment of the research contribution of individual teaching and research staff (this will comprise 55% of funding in 2019 and 2020)
 
  • Research Degree Completions - a measure of the number of research-based post-graduate degree completions (this will comprise 25% of funding in 2019 and 2020), and
 
  • External Research Income - a measure of income received for the purposes of conducting research (this will comprise 20% of funding in 2019 and 2020).
Tertiary Sector / Industry Collaboration Projects (M26)
Scope of Appropriation
This appropriation is limited to funding activities that improve the relevance to industry of tertiary education provision.
Expenses
  2018/19 2019/20
  Final Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 27,805 26,830 27,332
Components of the Appropriation
  2018/19 2019/20
  Final Budgeted
$000
Estimated Actual
$000
Budget
$000
Centres of Asia-Pacific Excellence 10,000 10,000 9,875
Maori Pasifika Trade Training 5,961 5,925 7,771
National Centre for Tertiary Teaching Excellence 3,556 3,556 3,556
Quality Teaching Agenda 4,196 4,196 2,520
Information and Communication Technology Graduate Schools (Development and Delivery) 1,581 1,581 1,610
Engineering Graduates 1,449 1,032 500
Other Funding 1,062 540 1,500
Total 27,805 26,830 27,332
What is Intended to be Achieved with this Appropriation

This appropriation is intended to support the development of knowledge and skills that are required by learners and employers, with a focus on Tertiary Education Strategy priorities.

How Performance will be Assessed and End of Year Reporting Requirements
  2018/19 2019/20
Assessment of Performance Final Budgeted
Standard
Estimated
Actual
Budget
Standard

Number of domestic equivalent full-time students in Information and Communication Technology Graduate Schools per calendar year (see Note 1).

300 ± 5% 206 Improve on previous year's result

Centres of Asia Pacific Excellence annual reports are reviewed and appropriate action is taken (see Notes 1 and 2).

Achieved Achieved Achieved

Note 1 - 2018/19 Final Budgeted Standard and 2018/19 Estimated Actual refer to the 2018 calendar year. 2019/20 Budget Standard refers to the 2019 calendar year.

Note 2 - Annual reports are reviewed against milestones and key performance indicators set in annual plans. Reviews look at progress on delivery towards policy objectives and long-term outcomes.

End of Year Performance Reporting

Performance information for this appropriation will be reported by the Tertiary Education Commission in its annual report.

Service Providers
Provider 2018/19
Final Budgeted
$000
2018/19
Estimated Actual
$000
2019/20
Budget
$000
Expiry of
Resourcing
Commitment

Crown Entities

       
Universities (8) 19,131 19,223 17,596 Investment plans range from 3 to 6 years
Wananga (3) 354 327 418 Investment plans up to 3 years
Institutes of Technology and Polytechnics (16) 5,730 4,770 6,361 Investment plans up to 3 years

Non-Government Organisations

       
Industry Training Organisations 484 470 - Investment plans up to 3 years
Private Training Establishments 2,106 2,040 2,957 Investment plans up to 3 years

Total

27,805

26,830

27,332

 

The table above shows the main service providers for this appropriation.

Current and Past Policy Initiatives
Policy Initiative Year of
First
Impact
2018/19
Final Budgeted
$000
2019/20
Budget
$000
2020/21
Estimated
$000
2021/22
Estimated
$000
2022/23
Estimated
$000

Current Government

           
Home-Based ECE Review - Improving the Quality of Home-Based Early Childhood Education 2019/20 - 500 500 - -
Reprioritisation of Funding - Information and Communication Technology (ICT) Graduate Schools 2018/19 (424) (161) (271) (271) (271)
Maori and Pasifika Trades Training: Improving Learner Support from 2019 2018/19 952 2,762 1,904 1,904 1,904

Previous Government

           
International Connections for New Zealanders 2016/17 10,000 9,875 10,000 10,000 10,000
Enabling Further Growth of Maori and Pasifika Trades Training 2015/16 810 810 810 810 810
Investing to Increase the Number of Engineering Graduates 2015/16 1,449 500 - - -
Information and Communication Technology Graduate Schools 2015/16 2,005 1,771 1,771 1,771 1,771
Reasons for Change in Appropriation

The $473,000 decrease in this appropriation for 2019/20 is mainly due to a combination of:

  • a one-off increase in 2018/19 to support exemplary postgraduate initial teacher education programmes ($1.676 million decrease)
  • a re-sequencing of initiatives to increase the number of engineering graduates ($949,000 decrease)
  • a transfer to 2020/21 to align with funding agreements with universities for the operation of Centres for Asia-Pacific Excellence ($125,000 decrease)
  • the transfer of Maori and Pasifika Trades Training Tools Subsidy funding from benefit or related expense Support to Apprentices to this appropriation from 2019 to enable consortia to improve support for learners ($1.810 million increase), and
  • a Budget 2019 initiative to improve the quality of educator-child interactions in home-based early childhood education by providing funding to tertiary providers to enable the existing educator workforce to upskill to a Level 4 early childhood education qualification ($500,000 increase).
Conditions on Use of Appropriation
Reference Conditions
Section 159L Education Act 1989 Funding is allocated by the Tertiary Education Commission in accordance with funding determinations issued by the Minister of Education.
University-led Innovation (M26)
Scope of Appropriation
This appropriation is limited to supporting universities to attract entrepreneurial academics to drive collaboration between universities and established and emerging businesses.
Expenses
  2018/19 2019/20
  Final Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 5,772 5,091 9,979
What is Intended to be Achieved with this Appropriation

This appropriation is intended to help New Zealand universities to recruit world-leading entrepreneurial academics, with a track record of working with industry to turn research into commercial innovation, with a focus on Tertiary Education Strategy priorities.

How Performance will be Assessed and End of Year Reporting Requirements
  2018/19 2019/20
Assessment of Performance Final Budgeted
Standard
Estimated
Actual
Budget
Standard

Entrepreneurial Universities' annual reports are reviewed and appropriate action is taken (see Notes 1 to 3).

Achieved Achieved Achieved

Note 1 - Entrepreneurial Universities are universities receiving funding through the Entrepreneurial Universities initiative.

Note 2 - 2018/19 Final Budgeted Standard and 2018/19 Estimated Actual refer to the 2018 calendar year. 2019/20 Budget Standard refers to the 2019 calendar year.

Note 3 - Annual reports are reviewed against milestones and key performance indicators set in their Programme Maps and Annual Approach to Activity. Reviews look at progress on delivery towards policy objectives and long-term outcomes.

End of Year Performance Reporting

Performance information for this appropriation will be reported by the Tertiary Education Commission in its annual report.

Service Providers
Provider 2018/19
Final Budgeted
$000
2018/19
Estimated Actual
$000
2019/20
Budget
$000
Expiry of
Resourcing
Commitment

Crown Entities

       
Universities (8) 5,772 5,091 9,979 Investment plans up to 5 years

Total

5,772

5,091

9,979

 
Current and Past Policy Initiatives
Policy Initiative Year of
First
Impact
2018/19
Final Budgeted
$000
2019/20
Budget
$000
2020/21
Estimated
$000
2021/22
Estimated
$000
2022/23
Estimated
$000

Current Government

           
Reprioritisation of Funding - Entrepreneurial Universities 2018/19 (5,061) (855) - (650) (5,641)

Previous Government

           
Building Entrepreneurial Universities 2016/17 10,833 10,834 10,000 10,000 10,000
Reasons for Change in Appropriation

The $4.207 million increase in this appropriation for 2019/20 is to provide for contractual commitments to Entrepreneurial Universities.

Awards for Outbound New Zealand Students (M26)
Scope of Appropriation
This appropriation is limited to awards granted to provide assistance to scholars, researchers and teachers to undertake placements abroad and to participate in reciprocal education exchange arrangements with partner countries in selected areas of priority study, teaching and research.
Expenses
  2018/19 2019/20
  Final Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 5,040 3,984 3,984
What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve access to wider international educational opportunities for skilled New Zealanders to enhance their existing skills.

How Performance will be Assessed and End of Year Reporting Requirements

An exemption was granted under section 15D(2)(b)(ii) of the Public Finance Act 1989, as additional performance information is unlikely to be informative because this appropriation is solely for payments of Study Abroad Awards and the Prime Minister's Scholarships for Asia fund and for other regions under the Education Act 1989.

Current and Past Policy Initiatives
Policy Initiative Year of
First
Impact
2018/19
Final Budgeted
$000
2019/20
Budget
$000
2020/21
Estimated
$000
2021/22
Estimated
$000
2022/23
Estimated
$000

Current Government

           
Reprioritisation of Funding - International Teacher Exchanges to Support Foreign Language Learning 2019/20 - (1,056) (1,056) (1,056) (1,056)
Reprioritisation - Prime Minister's Scholarships for Asia 2018/19 (500) (500) (500) (500) (500)

Previous Government

           
International Connections for New Zealanders 2016/17 2,500 2,500 2,500 2,500 2,500
Reasons for Change in Appropriation

The $1.056 million decrease in this appropriation for 2019/20 relates to the funding for the International Teacher Exchanges programme to support foreign language learning which has been discontinued due to low numbers of participating teachers and students.

Scholarships for Inbound International Students (M26)
Scope of Appropriation
This appropriation is limited to scholarships available to international students wishing to study in New Zealand.
Expenses
  2018/19 2019/20
  Final Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 800 800 600
What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve an increase in New Zealand's economic value from international students studying in New Zealand.

How Performance will be Assessed and End of Year Reporting Requirements

An exemption was granted under section 15D(2)(b)(ii) of the Public Finance Act 1989, as additional performance information is unlikely to be informative because this appropriation is solely for payments of the New Zealand International Student Doctoral Research Scholarship under the Education Act 1989.

Current and Past Policy Initiatives
Policy Initiative Year of
First
Impact
2018/19
Final Budgeted
$000
2019/20
Budget
$000
2020/21
Estimated
$000
2021/22
Estimated
$000
2022/23
Estimated
$000

Current Government

           
Reprioritisation of Funding - New Zealand International Doctoral Research Scholarships 2019/20 - (200) (500) (800) (800)
Reasons for Change in Appropriation

The $200,000 decrease in this appropriation for 2019/20 is due to the funding for New Zealand International Doctoral Research Scholarships being phased out. No new scholarships have been awarded since 2017.

Tertiary Scholarships and Awards (M26)
Scope of Appropriation
This appropriation is limited to providing scholarships for tertiary students and other awards in the tertiary sector, and the provision of scholarships and bursaries to Maori and Pasifika students. It includes training assistance under Queen Elizabeth II Study Awards and recognition of outstanding tertiary education teachers.
Expenses
  2018/19 2019/20
  Final Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 15,568 15,568 15,885
What is Intended to be Achieved with this Appropriation

This appropriation is intended to provide a stipend for domestic sixth-year medical trainee interns and other scholarships.

How Performance will be Assessed and End of Year Reporting Requirements

An exemption was granted under section 15D(2)(b)(ii) of the Public Finance Act 1989, as additional performance information is unlikely to be informative because this appropriation is solely for payments of Tertiary Scholarships and Awards under the Education Act 1989.

Current and Past Policy Initiatives
Policy Initiative Year of
First
Impact
2018/19
Final Budgeted
$000
2019/20
Budget
$000
2020/21
Estimated
$000
2021/22
Estimated
$000
2022/23
Estimated
$000

Previous Government

           
Trainee Medical Intern Grants 2018/19 433 866 866 866 866
Trainee Medical Intern Grants 2017/18 509 509 509 509 509
Delivering Support to Graduate-Entry Students Affected by Seven EFTS Limit to Complete Long Undergraduate Programmes 2015/16 144 1 - - -
Trainee Medical Intern Grants 2015/16 1,714 1,741 1,741 1,741 1,741
Additional Medical Student Places 2015/16 947 947 947 947 947

3.5 - Non-Departmental Capital Expenditure#

Support for Lincoln University (M26)
Scope of Appropriation
This appropriation is limited to the rebuild of the science facilities at Lincoln University.
Capital Expenditure
  2018/19 2019/20
  Final Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation - - 65,000
What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve effective investment in rebuilding the science facilities at Lincoln University.

How Performance will be Assessed and End of Year Reporting Requirements
  2018/19 2019/20
Assessment of Performance Final Budgeted
Standard
Estimated
Actual
Budget
Standard

Achieving business case milestones in the rebuild of science facilities at Lincoln University.

New measure New measure Achieved
End of Year Performance Reporting

Performance information for this appropriation will be reported by Lincoln University in its annual report.

Current and Past Policy Initiatives
Policy Initiative Year of
First
Impact
2018/19
Final Budgeted
$000
2019/20
Budget
$000
2020/21
Estimated
$000
2021/22
Estimated
$000
2022/23
Estimated
$000

Previous Government

           
Lincoln University Science Facilities: Crown Capital Investment 2019/20 - 65,000 15,000 5,000 -
Reasons for Change in Appropriation

New appropriation for the Crown's contribution to the cost of rebuilding the earthquake-damaged science facilities at Lincoln University.

Support for Unitec Institute of Technology (M26)
Scope of Appropriation
This appropriation is limited to providing a loan facility for Unitec to support its cash flow and manage normal operations and restructuring costs.
Capital Expenditure
  2018/19 2019/20
  Final Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 35,000 35,000 15,000
What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve the continued operation of the Unitec Institute of Technology, providing continuity for students and staff while reviewing options for the future.

How Performance will be Assessed and End of Year Reporting Requirements
  2018/19 2019/20
Assessment of Performance Final Budgeted
Standard
Estimated
Actual
Budget
Standard

Unitec Institute of Technology submits quarterly reports which show that it is meeting the performance targets that were agreed as part of the concessionary loan agreement with the Crown.

Achieved Achieved Achieved
End of Year Performance Reporting

Performance information for this appropriation will be reported by the Unitec Institute of Technology in its annual report.

Current and Past Policy Initiatives
Policy Initiative Year of
First
Impact
2018/19
Final Budgeted
$000
2019/20
Budget
$000
2020/21
Estimated
$000
2021/22
Estimated
$000
2022/23
Estimated
$000
Crown Support for Unitec Institute of Technology and Whitireia New Zealand 2018/19 35,000 15,000 - - -
Reasons for Change in Appropriation

An interest-free concessionary loan facility for the Unitec Institute of Technology of up to $50 million over two years to meet its cash shortfall in 2018 and 2019 and support its right-sizing initiatives.

Part 4 - Details of Multi-Category Expenses and Capital Expenditure#

Multi-Category Expenses and Capital Expenditure#

Stewardship of the Tertiary Education System (M26)
Overarching Purpose Statement
The single overarching purpose of this appropriation is to provide services that contribute towards a well-functioning tertiary education system.
Scope of Appropriation
Departmental Output Expenses
Policy Advice
This category is limited to the provision of advice (including second opinion advice and contributions to policy advice led by other agencies) to support decision-making by Ministers on Tertiary Education and international education related matters.
Research, Data Analysis and Monitoring
This category is limited to the production and dissemination of research and data analysis, monitoring and reporting on tertiary education at a system-wide level, and the provision of services (other than policy advice) to support the work of other agencies and Ministers in discharging their responsibilities for tertiary education and international education related matters.
Expenses, Revenue and Capital Expenditure
  2018/19 2019/20
  Final Budgeted
$000
Estimated Actual
$000
Budget
$000

Total Appropriation

15,727 15,727 16,678

Departmental Output Expenses

     
Policy Advice 7,171 7,171 6,821
Research, Data Analysis and Monitoring 8,556 8,556 9,857

Funding for Departmental Output Expenses

     

Revenue from the Crown

14,977 14,977 15,928
Policy Advice 7,171 7,171 6,821
Research, Data Analysis and Monitoring 7,806 7,806 9,107

Revenue from Others

750 750 750
Research, Data Analysis and Monitoring 750 750 750
What is Intended to be Achieved with this Appropriation

This appropriation is intended to provide advice to Ministers to support decision-making, managing the Government's investment in the tertiary education sector, and monitoring and oversight of the sector.

How Performance will be Assessed for this Appropriation
  2018/19 2019/20
Assessment of Performance Final Budgeted
Standard
Estimated
Actual
Budget
Standard

The satisfaction rating given by the Minister of Education with the overall performance of the Ministry (see Note 1).

7 7 7

Note 1 - The rating measures Ministers' satisfaction on a scale of 1 to 10, where 1 means unsatisfactory and 10 means extremely satisfied.

What is Intended to be Achieved with each Category and How Performance will be Assessed
  2018/19 2019/20
Assessment of Performance Final Budgeted
Standard
Estimated
Actual
Budget
Standard

Departmental Output Expenses

     

Policy Advice

     

This category is intended to achieve the provision of quality advice to the Minister to ensure that tertiary education policy and programmes support the performance of the tertiary education system.

     

Internal quarterly assessment of the quality of the Ministry's policy advice (see Note 1).

Mean of 3.5 out of 5 Mean of 3.5 out of 5 Mean of 3.5 out of 5

The satisfaction rating given by Ministers for the quality and timeliness of policy advice (as per the Common Satisfaction Survey) (see Note 2).

7 7 7

Research, Data Analysis and Monitoring

     

This category is intended to contribute to a shared strategic direction and alignment across the tertiary education system.

     

Forecasts of student loans and student allowances are accurate within an agreed average of actual values.

Accurate within ± 3% of actual values Accurate within ± 3% of actual values Accurate within ± 3% of actual values

The satisfaction rating given by the Minister of Education on the quality of monitoring advice provided by the Ministry about Crown agencies (see Note 3).

7 7 7

The quality and range of the Ministry's analytical outputs is assessed through an independent expert review (see Note 4).

Quality is assessed as 'Good' or better Quality is assessed as 'Good' or better Quality is assessed as 'Good' or better

The satisfaction rating given by Ministers for the quality and timeliness of support for Ministerial delegations and visits (see Note 3).

7 7 7

The percentage of Ministerial correspondence replies, Parliamentary question replies and Ministerial Official Information Act replies completed within the timeframes agreed between the Ministry and the Office of the Minister.

95% 95% 95%

The percentage of Ministerial correspondence replies, Parliamentary question replies and Ministerial Official Information Act replies provided that are factually accurate, meet any legislative requirements, and contain no avoidable errors, as measured by acceptance rates by the Office of the Minister.

95% 95% 95%

Note 1 - Based on a five-point scale: 1 = 'Poor'; 2 = 'Borderline'; 3 = 'Adequate'; 4 = 'Good'; 5 = 'Very good'. All agencies are required to use the refreshed Policy Quality Framework from 2019/20 to assess the quality of their policy papers. The Policy Quality Framework is currently being refreshed. The refreshed Framework and guidance will be released before 30 June 2019 and the measure updated in the Supplementary Estimates.

Note 2 - The Common Satisfaction Survey rating measures Ministers' satisfaction with the quality, timeliness and value for money of policy advice on a scale from 1 to 10, where 1 means unsatisfied and 10 means extremely satisfied. All agencies are required to use the refined Ministerial Satisfaction Survey from 2019/20 to assess Ministerial satisfaction with the policy service. The survey is currently under review and the refined survey and guidance will be released before 30 June 2019 and the measure updated in the Supplementary Estimates.

Note 3 - The rating measures Ministers' satisfaction on a scale from 1 to 10, where 1 means unsatisfied and 10 means extremely satisfied.

Note 4 - Based on a five-point rating scale: 1 = 'Very poor'; 2 = 'Poor'; 3 = 'Acceptable'; 4 = 'Good'; 5 = 'Very good'.

End of Year Performance Reporting

Performance information for this appropriation will be reported by the Ministry of Education in its annual report.

Current and Past Policy Initiatives
Policy Initiative Year of
First
Impact
2018/19
Final Budgeted
$000
2019/20
Budget
$000
2020/21
Estimated
$000
2021/22
Estimated
$000
2022/23
Estimated
$000

Current Government

           
Programme for International Assessment of Adult Competencies 2019/20 - 1,300 422 3,777 131
Education Portfolio Work Programme 2018/19 350 - - - -
Financial Impacts of the 100 Days Tertiary Education Package 2018/19 3,000 3,000 2,000 2,000 2,000

Previous Government

           
Share of Costs for Budget 2015 Whole-of-Government Initiatives 2015/16 (5) (4) (4) (4) (4)
Reasons for Change in Appropriation

The $951,000 increase in this appropriation for 2019/20 is mainly due to provision for participation in the programme for International Assessment of Adult Competencies ($1.300 million).

Tertiary Tuition and Training (M26)
Overarching Purpose Statement
The single overarching purpose of this appropriation is to fund tertiary tuition and training that leads to improvements in New Zealanders' skill levels.
Scope of Appropriation
Non-Departmental Output Expenses
Community Education
This category is limited to funding for adult and community education and literacy, numeracy and English language provision.
Tertiary Education: Student Achievement Component
This category is limited to funding for teaching and learning services for enrolled students in approved courses at tertiary education organisations to achieve recognised tertiary qualifications.
Training for Designated Groups
This category is limited to the purchasing and arranging of training linked to the New Zealand Qualifications Framework and the purchase of both on-job and off-job training places, including delivery of fully or partially funded training places and other industry-training related projects.
Non-Departmental Other Expenses
Fees-free Payments
This category is limited to ensuring fees-free study for eligible students, apprentices and trainees.
Expenses, Revenue and Capital Expenditure
  2018/19 2019/20
  Final Budgeted
$000
Estimated Actual
$000
Budget
$000

Total Appropriation

2,622,598 2,622,598 2,843,408

Non-Departmental Output Expenses

     
Community Education 71,834 71,834 74,566
Tertiary Education: Student Achievement Component 1,974,205 1,974,205 2,115,387
Training for Designated Groups 276,324 276,324 307,323

Non-Departmental Other Expenses

     
Fees-free Payments 300,235 300,235 346,132
Components of the Appropriation
  2018/19 2019/20
  Final Budgeted
$000
Estimated Actual
$000
Budget
$000

Community Education

     
Adult and Community Education 23,428 23,428 23,935
Literacy and Numeracy Provision 34,362 34,362 34,688
English for Speakers of Other Languages 12,421 12,421 14,022
Migrant Levy 213 213 213
Emergency Management Pool 1,410 1,410 1,708

Tertiary Education: Student Achievement Component

     
Provision at Levels 1 and 2 72,533 72,533 93,238
Provision at Levels 3 and above      
- Universities 1,185,069 1,185,069 1,270,522
- Institutes of Technology and Polytechnics 419,916 419,916 450,247
- Wananga 118,141 118,141 119,432
- Private Training Establishments 170,822 170,822 174,639
Information and Communications Technology Graduate Programmes 3,650 3,650 4,475
Grants under section 321 of the Education Act 4,074 4,074 2,834

Training for Designated Groups

     
Industry Training Fund 180,624 180,624 185,870
Youth Guarantee 77,579 77,579 102,599
Gateway 18,121 18,121 18,854

Fees-free Payments

300,235 300,235 346,132
Total 2,622,598 2,622,598 2,843,408
What is Intended to be Achieved with this Appropriation

The overarching intention is to contribute to improved lifetime outcomes of New Zealanders through the provision of skills from tertiary education, training, foundation learning programmes and community education, with a focus on Tertiary Education Strategy priorities.

How Performance will be Assessed for this Appropriation
  2018/19 2019/20
Assessment of Performance Final Budgeted
Standard
Estimated
Actual
Budget
Standard

Percentage of Student Achievement Component-funded and Youth Guarantee-funded learners who complete 75% of their courses (see Note 1).

New measure New measure Improve on previous year's result

Note 1 - 2018/19 Final Budgeted Standard and 2018/19 Estimated Actual refer to the 2018 calendar year. 2019/20 Budget Standard refers to the 2019 calendar year.

What is Intended to be Achieved with each Category and How Performance will be Assessed
  2018/19 2019/20
Assessment of Performance Final Budgeted
Standard
Estimated
Actual
Budget
Standard

Non-Departmental Output Expenses

     

Community Education

     

This category is intended to achieve improvement in literacy and numeracy skills for learners who have low skills in these areas by funding foundational learning programmes.

     

Percentage of learners accessing the desired range (hours) of provision (see Notes 1 and 2):

     
  • Intensive Literacy and Numeracy
Baseline year 66% Improve on previous year's result
  • Workplace Literacy and Numeracy (tertiary education organisation-led)
Baseline year 61% Improve on previous year's result
  • English for Speakers of Other Languages.
Baseline year 97% Improve on previous year's result

Tertiary Education: Student Achievement Component

     

This category is intended to achieve learners' attainment of recognised tertiary qualifications by funding education and training opportunities.

     

Qualification Completion (cohort based) (see Note 1) - Percentage of Student Achievement Component-funded students completing qualifications:

     

Level 4 to 7 non-degree:

     
  • all learners
Improve on previous year's result Not improved on previous year (54%) Improve on previous year's result
  • Maori learners (relative to combined non-Maori and non-Pacific learners' results) (see Note 3)
Improve on previous year's result Not improved on previous year (-2% points) Improve on previous year's result
  • Pacific learners (relative to combined non-Maori and non-Pacific learners' results) (see Note 4).
Improve on previous year's result There is no parity gap Maintain previous year's result

Level 7 degree and above:

     
  • all learners
Improve on previous year's result Improved on previous year (62%) Improve on previous year's result
  • Maori learners (relative to combined non-Maori and non- Pacific learners' results) (see Note 3)
Improve on previous year's result Not improved on previous year (-16% points) Improve on previous year's result
  • Pacific learners (relative to combined non-Maori and non-Pacific learners' results) (see Note 5).
Improve on previous year's result Not improved on previous year (-16% points) Improve on previous year's result

Training for Designated Groups

     

This category is intended to achieve an increase in the number of young people and employees with qualifications valued by employers through investing in training.

     

Industry Training (cohort based) (see Note 1) - Percentage completing programmes:

     
  • all learners
Improve on previous year's result Not improved on previous year (68%) Improve on previous year's result
  • industry trainees
Improve on previous year's result Not improved on previous year (70%) Improve on previous year's result
  • apprentices
Improve on previous year's result Not improved on previous year (45%) Improve on previous year's result
  • Maori (relative to combined non-Maori and non-Pacific learners' results) (see Note 3)
Improve on previous year's result Not improved on previous year (-7% points) Improve on previous year's result
  • Pacific (relative to combined non-Maori and non-Pacific learners' results) (see Note 4)
Improve on previous year's result There is no parity gap Maintain previous year's result

Youth Guarantee - Percentage of Youth Guarantee learners completing qualifications at Level 2 or 3 (see Note 1).

Baseline year 59% Maintain or improve on previous year's result

Non-Departmental Other Expenses

     

Fees-free Payments

     

This category is intended to contribute to removing barriers to participation by making tertiary education more affordable.

     

Percentage increase in first-time domestic learners (including industry training) at Level 3 and above (see Note 1 and 6):

     
  • all learners
Baseline year Baseline year Improve on previous year's result
  • Maori learners (relative to combined non-Maori and non-Pacific learners' results) (see Note 3)
Baseline year Baseline year Improve on previous year's result
  • Pacific learners (relative to combined non- Maori and non-Pacific learners' results) (see Note 5).
Baseline year Baseline year Improve on previous year's result

Note 1 - 2018/19 Final Budgeted Standard and 2018/19 Estimated Actual refer to the 2018 calendar year. 2019/20 Budget Standard refers to the 2019 calendar year.

Note 2 - Desired range of hours relates to the optimal hours of learning needed to make an impact on an individual's learning.

Note 3 - This is a measure of the percentage point gap between the percentage of Maori learners completing qualifications and the percentage of combined non-Maori and non-Pacific learners completing qualifications - the desired trend is for the percentage point gap to decrease.

Note 4 - This is a measure of the percentage point gap between the percentage of Pacific learners completing qualifications and the percentage of combined non-Maori and non-Pacific learners completing qualifications - the desired trend is for there to continue to be no parity gap.

Note 5 - This is a measure of the percentage point gap between the percentage of Pacific learners completing qualifications and the percentage of combined non-Maori and non-Pacific learners completing qualifications - the desired trend is for the percentage point gap to decrease.

Note 6 - First-time learners as defined by current learner eligibility criteria for fees-free (see www.feesfree.govt.nz/faqs).

Service Providers for the Multi-Category Appropriation
Provider 2018/19
Final Budgeted
$000
2018/19
Estimated Actual
$000
2019/20
Budget
$000
Expiry of
Resourcing
Commitment

Crown Entities

       
Universities (8) 1,334,388 1,334,388 1,472,553 Plans up to 3 years
Wananga (3) 176,540 176,540 184,621 Plans up to 3 years
Institutes of Technology and Polytechnics (16) 575,659 575,659 626,225 Plans up to 3 years
Schools 22,141 22,141 22,929 Plans up to 3 years
Government Training Establishment 1,322 1,322 1,316 Plans up to 3 years

Non-Government Organisations

       
Private Training Establishments 326,352 326,352 342,506 Plans up to 3 years
Rural Education Activities Programmes (13) 2,483 2,483 2,797 Plans up to 3 years
Employers 6,255 6,255 9,226 Plans up to 3 years
Community Education Providers 2,600 2,600 2,766 Plans up to 3 years
Industry Training Organisations 174,858 174,858 178,469 Plans up to 3 years

Total

2,622,598

2,622,598

2,843,408

 

The table above shows the main service providers for this appropriation.

End of Year Performance Reporting

Performance information for this appropriation from the Tertiary Education Commission will be included in a report appended to the Ministry of Education's annual report. It will also be reported by the Tertiary Education Commission in its annual report.

Current and Past Policy Initiatives
Policy Initiative Year of
First
Impact
2018/19
Final Budgeted
$000
2019/20
Budget
$000
2020/21
Estimated
$000
2021/22
Estimated
$000
2022/23
Estimated
$000

Current Government

           
Refugee Quota Increase: Increased Settlement Services 2020/21 - - 1,157 1,688 3,220
Teacher Supply - Continuing to Increase the Levels of Teacher Supply for the Future 2019/20 - 2,624 5,268 7,316 9,364
Increasing Tertiary Tuition and Training Subsidies - Maintaining Quality Tertiary Education 2019/20 - 22,111 44,222 44,222 44,222
Home-Based ECE Review - Improving the Quality of Home-Based Early Childhood Education 2018/19 227 608 1,803 2,004 623
Reprioritisation of Funding - Tertiary Tuition and Training Multi-Category Appropriation 2018/19 Underspends 2018/19 (60,000) - - - -
Reprioritisation of Funding - Information and Communication Technology (ICT) Graduate Schools 2018/19 (645) (978) (3,009) (5,031) (5,031)
Reprioritisation of Funding - Fees-Free Tertiary Education and Training 2018/19 (49,465) (41,968) (42,854) (33,484) (29,361)
Reprioritisation of Funding - Accounting Treatment of Recovery Exemption Expiration 2018/19 (95,000) - - - -
Programme for International Assessment of Adult Competencies 2018/19 (5,630) - - - -
Reform of Vocational Education 2018/19 (5,000) - - - -
Streamlining Secondary-Tertiary Learning Opportunities from 2019 2018/19 (3,750) (7,500) (7,500) (7,500) (7,500)
Extending the seven EFTS borrowing limit for students in long programmes 2018/19 (3,757) (3,877) (4,220) (4,442) (4,682)
Computers in Homes 2018/19 1,000 1,000 - - -
Tuition Subsidy Increase for Level 3 and Above 2018/19 15,843 - - - -
Reprioritisation - Tertiary Tuition and Training Multi-Category Appropriation 2018/19 (12,350) (24,700) (24,700) (24,700) (24,700)
Financial Impacts of the 100 Days Tertiary Education Package 2017/18 354,700 404,700 447,100 471,700 471,700
Community Organisation Refugee Sponsorship Category 2017/18 53 53 - - -

Previous Government

           
The Next Three-Year (2016/17 to 2018/19) Refugee Quota Programme 2018/19 525 1,050 1,575 1,575 1,575
Funding for Employment-based Initial Teacher Education 2017/18 (1,913) (1,896) (703) - -
Tuition Subsidy Increase 2017/18 19,810 19,810 19,810 19,810 19,810
Expanding the Youth Literacy and Numeracy Assessment Tool 2017/18 (330) (330) (330) (330) (330)
New Funding for Targeted Tuition Subsidy Increases 2016/17 5,000 5,000 5,000 5,000 5,000
More New Zealand Apprentices 2016/17 4,500 6,300 7,200 7,200 7,200
Utilise Headroom Arising from Reduced Demand for Tertiary Education 2016/17 (20,000) (20,000) (20,000) (20,000) (20,000)
Response to Syrian Refugee Crisis: Implementation 2015/16 757 379 131 - -
Funding for Additional Trades Academy Places 2015/16 (4,610) (4,610) (4,610) (4,610) (4,610)
Targeted Tuition Increases for Science, Agriculture and some Health Sciences 2015/16 24,500 24,500 24,500 24,500 24,500
Investing to Increase the Number of Engineering Graduates 2015/16 2,925 3,900 3,900 3,900 3,900
Reasons for Change in Appropriation

The $220.810 million increase in this appropriation for 2019/20 is mainly due to a combination of:

  • one-off savings in 2018/19 due to the end of the funding recovery exemption applied to tertiary education institutions affected by the Canterbury earthquakes ($95 million increase)
  • increased provision for the first-year fees-free policy ($62.497 million increase)
  • one-off savings in 2018/19 in non-departmental output expenses due to 2018 calendar year enrolments being lower than the level budgeted for ($60 million increase)
  • a 1.8% increase in tuition and training subsidy rates from 1 January 2020 for Adult and Community Education, Student Achievement Component funding at all qualification levels, Youth Guarantee and Gateway programmes, and the Industry Training Fund ($22.111 million increase)
  • a transfer in 2018/19 only to departmental output expense Research, Data Analysis and Monitoring (in Stewardship of the Tertiary Education System MCA) for participation in the OECD Programme for International Assessment of Adult Competencies ($5.630 million increase)
  • provision for initiatives to alleviate teacher supply pressures in Budget 2019 ($2.624 million increase)
  • provision for more apprentices in Budget 2016 ($1.800 million increase)
  • a one-off increase in 2018/19 to help fund a 1.6% increase in tuition subsidy rates at qualification Level 3 and above in 2019 ($15.843 million decrease)
  • a forecast decline in demand for provider-based programmes in 2019/20 ($12.350 million decrease), and
  • a transfer to Vote Education non-departmental output expense Secondary-Tertiary Interface to fund 1,060 additional Trades Academy places from 2019 by discontinuing the DualPathways Pilot ($3.750 million decrease).
Conditions on Use of Appropriation
Reference Conditions
Section 159L Education Act 1989 Funding is allocated by the Tertiary Education Commission in accordance with funding determinations issued by the Minister of Education.
  Tertiary Education: Student Achievement Component provides for the Government's share of the cost of delivering courses to students. The amount that a provider receives through this component is calculated on the basis of the nature of the programme and the approved volume of teaching and learning.