Senate Meeting 17 May 2004

HECS ‘TOP-UP’ FEES An Issues Paper

Michael Borowitzka

MISSION 2003-2007 Strategic Plan

Murdoch will be a prominent and influential research-intensive University in the local, national and global communities. It will be renowned for its teaching quality, research excellence and innovation, and promotion of social and scientific critique . Murdoch University will embrace cultural diversity and ensure an international perspective in its activities, incorporating principles of sustainability, social justice and global responsibility.

Murdoch University is a multi-campus institution. By engaging with communities in the sphere of influence of our campuses, Murdoch will be a significant contributor to cultural and community life and development in the region.

Through excellence and accessibility in the learning environment, student care and service provision, Murdoch, in partnership with the Guild of Students, will engender a vibrant and positive on-campus life. The University will also foster an expanding, active community of alumni.

Murdoch University will have increased financial reserves and more diverse sources of income as a result of an entrepreneurial outlook combined with prudent management that will ensure long-term independence .

Background

One outcome of the Nelson review ‘Crossroads/backing Australia’s Future’ was partial deregulation of HECS to enable individual Universities, from 2005, to set HECS levels from zero to 25% above current rates.

The increase only applies to new commencing students and not to Nursing or Teacher Education.

GOALS (from 2003-2007 Strategic Plan)

• •

To provide quality contemporary education which empowers the students of today to live and work in the world of tomorrow To achieve Murdoch University’s strategic objectives by providing effective leadership and applying our human, financial and physical resources in a planned and accountable fashion.

Issues



Need



Equity



Strategic Implications



Application of additional income

Teaching Related Expenditure 25000 20000 15000 10000 ECU Curtin Murdoch UWA 5000 0 1998 1999 2000 2001 YEAR 2002 2003 2004

Total Load (EFTSU)/Teaching Staff 10 5 25 20 15

19.5

18.1

0 1998 1999 2000 2001 YEAR 2002 2003 2004

% Increases in Expenses and Indexation in Commonwealth Operating Grant 30

SALARY

25 20

NON-SALARY

15 10 5 0 1998 60 50 40 30 20 10 0 1998 1999 1999

Actual

2000 YEAR 2001

Indexation

2002 2000 YEAR 2001

Actual

2002

Indexation

2003 2003

Note: The new funding model which applies from 2005 means that Murdoch University will actually have a reduction in income in its Commonwealth Operating Grant (COG).

(this will be protected to some degree by the transitional arrangements announced by the Minister)

Income 120000 100000 80000 60000 40000 20000 1997 1998 1999 2000 2001 YEAR 2002 2003 2004 2005 COG International PostGrad Other Total Income

Other Issues

      Increased tutorial sizes Reduction in tutorial/practical class numbers Reduced part-time Teaching Funding Pressure on practical classes etc.

Student & staff concerns on facilities (eg. Computers, lecture rooms etc.) Future Salary increases

NB. Note that an increase in income due to HECS top-up is a temporary fix only if the Commonwealth indexation rules do not change in the future.

Equity

 An increase in HECS will increase student debt & may discourage some students (especially from some equity groups) from going to University.

Possible Options

 Scholarships for Equity Groups  eg. Learning Scholarships; Accommodation Scholarships  Increased support for transition and equity programs  Exemption from HECS top-up

Strategic Implications

Present Status of other Universities Full 25% Top-up

University of WA University of Sydney UTS, Sydney University of Newcastle University of Melbourne Monash University La Trobe University QUT Griffith University U. Southern Queensland Adelaide University

Partial Top-up

University of New England (20%) Swinburne (15%)

No Top-up

ANU James Cook University Charles Sturt University Australian catholic University

Strategic Implications

   Effect on enrolments (numbers, first preferences, cut-off score) Public perception of quality Need to deliver outcomes to students

Application of additional income

The additional income from HECS top-up should be used to improve the educational outcomes for students

  

Some questions:

Use extra income to support all of the University or only those areas which generate the income? What about nursing & education?

Target an increased $/EFTSU for Academic Divisions?

$/EFTSU to Academic Divisions DEST Budget - M urdoch Campus

$6,600 $6,500 $6,400 $6,300 $6,200 $6,100 $6,000 2001 2002 2003 2004

Questions for Senate

Are there any comments on the issues raised?

Are there any other key issues to be considered?

What further information would aid Senate in its deliberations on this issue at it’s next meeting?