Budget 2017 – Ministers’ Key Messages for Tertiary Education

Providers will get a 1% SAC L3+ funding increase, universities will get a 5% PBRF increase (and other research funding boosts), and students on an allowance will get $20/week for accommodation. This post is based mainly on Ministers’ releases – our full analysis will come later this afternoon.

Relevance: high relevance to all.

Our Take

  • All providers will get a 1% SAC funding increase at L3+, although there was no increase for ITOs or foundation education providers.
  • Universities will benefit from a 5% PBRF increase, and boosts to the Endeavour, natural hazards and Antarctica research funds.
  • Education NZ gets a small funding boost, and has had funding replaced that was scheduled to end.
  • Many students will benefit from a $20 increase in the Accommodation Benefit from next April.
  • Most people will also get a tax cut of $21/week.
  • This update takes Ministerial media releases at face value, which is usually unwise but gets material to you quickly. We will provide more detailed information, and our analysis of it, later today. Ministers seem to have been quite accurate this time though.

Key Facts

  • This update summarises key items relevant to the tertiary education sector from Budget speeches and Ministerial media releases. You can find the releases here. All totals are over 4 years unless stated otherwise.
  • Steven Joyce – Budget Speech and Media Release.
    • The new spending allowance was changed for Budget 2017 from $1.5b to $1.8b.
    • The Budget 2017 capital allowance will be $4.0b (as announced previously), none of which is allocated to tertiary education or science.
    • The forecast surplus is $2.9b (rising to $7.2b in 2020/21). The Government plans to use a considerable part of future surpluses to pay off debt.
    • The focus areas for spending were: Business Growth Agenda, Better Public Services, Infrastructure and Māori Development. There was also a $2b Family Incomes Package, which will change taxes and benefits.
  • Paul Goldsmith and Simon Bridges – Innovative NZ
    • The release listed relevant initiatives in science, tertiary education and economic development (the key ones are described below).
  • Paul Goldsmith – Tertiary Education
    • $132.1m, of which $7.5m was reprioritised.
    • $69.3m for a 1% higher tuition subsidy rates at L3+.
    • $52.5m for the PBRF.
    • $6.8m for Education NZ.
    • $3.5m for workplace-based literacy and numeracy programmes in 2018 only (reprioritised from the previous year).
  • Paul Goldsmith – Science and Innovation (and again)
  • Steven Joyce – Family Incomes Package
    • The Accommodation Benefit will go up by up to $20 for eligible Student Allowance recipients.
  • Nikki Kaye – Education
  • Anne Tolley and Nikki Kaye – Vulnerable Children
  • Anne Tolley – Employment
    • $19.5m for expanding intensive support for long-term beneficiaries from 240 to 1,500 clients, with a focus on attaining employment.
  • Louise Upston – Corrections
    • $18.6m to boost Corrections’ most effective rehabilitative programmes, including education and work support.

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