An Overview of the New Zealand Tertiary Education System

Presented to the Fiji Education Delegation

Dr Dafydd Davies and Dr Daniel HainesUniversity Investment

Tertiary Education Commission 14 May 2014

Overview» New Zealand is a small country ~ 4.5 million » Investment in tertiary education:

› NZ$ 3 billion per annum – support to providers› NZ$ 1.5 billion per annum - support to

students › 1.7% of GDP spent on tertiary education, the

OECD average is 1.2% of GDP» More than half of New Zealanders aged 15 to 29

hold a tertiary qualification » Policy, funding and quality assurance are part

of a unified and integrated system

The education pipeline

Who pays?» Gradually moving toward free education

for all learners up to Level 2 (high school equivalent), whether accessed through school or tertiary education

» Co-contribution (student and government) model from Level 3 and above

» Employer contribution to Industry (workplace) Training

Tertiary Education Organisations:

TEOs

Public TEOs: Tertiary Education

Institutions (TEIs)

8 universities155,500

enrolments (42%)

18 polytechnics130,800

enrolments (35%)

3 wānanga38,900

enrolments (10%)

Private TEOs

Private Training Establishments (~400 funded by TEC)

48,600 enrolments

(13%)

20 Industry Training Organisations 140,700 enrolments

Community organisations ACE providers and schools (~300

funded by TEC)

“Providers”

Our Policy Framework» A small number of agencies work with students, providers and

employers to achieve outcomes

» Policy, funding and quality assurance are part of a unified and integrated system

» Focus of system moving over time: Access >> Outcomes >> Value-Add

Students

ProvidersEmployers

Government

Policy

Funding

Quality Assuran

ce

Outcomes

Tertiary Education Commission (TEC)

Ministry of Education (MoE) and

Ministry of Business, Innovation and

Employment (MBIE)

Role of Government agenciesPolicy

New Zealand Qualifications Authority (NZQA) and Committee on University Academic Programmes (CUAP)

Quality AssuranceFunding

A world-leading education system that equips all New Zealanders with the knowledge, skills and values to be

successful citizens in the 21st century

Policy: Ministry of Education Working closely with the Ministry of Business, Innovation and Employment» Forms basis of Performance-Linked Funding

calculations for SAC funding» Government's lead advisor on the New Zealand

education system» Responsible for strategic leadership, policy

development and monitoring and evaluation» Shapes direction for sector agencies (including

monitoring of TEC, NZQA and Careers NZ) and, at arm’s length, for providers

» Operational role in the compulsory education sector

Funding: Tertiary Education Commission» Plan-based investment approach:

» Performance Linked Funding: 5% from 2012» Research: Performance-Based Research Fund

(~$335m) and CoRES (~$35m)

Minister (via Ministries)

Tertiary Education Commission TEOs

Tertiary Education Strategy

Funding Determinations

Plan Guidance Plans

Governme

nt Pol

icy

Educational Performance Indicators» Four key measures focused on most important

learner outcomes:› Course completion› Qualification completion› Progression to higher levels› Retention in study

» Published annually for all TEIs, PTEs, and ITOs

» Forms basis of Performance-Linked Funding calculations for SAC funding

Quality Assurance: New Zealand Qualifications Authority and Committee on University Academic Programmes (CUAP)

» Ensures that New Zealand qualifications are of high quality and fit for purpose

» NZQA: › Manages the New Zealand Qualifications

Framework› Administers the secondary school assessment

system› Provides quality assurance for non-

university tertiary education› Recognises qualifications and sets

standards» CUAP: Provides quality assurance for

university education

New Zealand Qualifications Framework

» The NZQF is a unified framework that clearly reflects differentiation in levels and qualifications, underpinned by quality assurance

Key areas of current activity:» Better Public Services: 2

tertiary goals» Vocational Pathways

Better Public Services Goal 1: 85% of 18 year olds will have NCEA level 2 (High School) or equivalent in 2017 (currently 74%).

Key initiatives:» Vocational Pathways» More options for senior secondary

students, e.g. trades academies, fees-free tertiary places (Youth Guarantee)

» Better careers education and pastoral care

» More effective tracking and monitoring of students

Better Public Services Goal 2: 55% of 25–34 year-olds with a qualification at Level 4 or above in 2017 (currently 52%)

Key initiatives:» Fund more places at higher levels

(provider-based + industry training)» Publish information about employment

outcomes and demand for skills» Improve flows of students from lower

levels of study» Attract back “partial completers”

Vocational Pathways» Better

information for learners about where their study choices can take them

» A very easy way to understand a complex set of information

Any questions?

Features of New Zealand Education

» High proportion of tertiary qualified adults› One in four NZ adults aged 25 to 64 hold a degree or higher, and

New Zealand is ranked 8th in the OECD on this measure

» High percentage of population enters high-level study › The rate of entry to degree-level study was 72% (with

international students included)

» Very high number of part-time students› One of the highest in the OECD. Contributing factors: open access

for adult students; and lots of adult students who left school without qualifications come back to tertiary study while working.

» A net importer of tertiary students

Using the “information” lever» Occupational Outlook reports» Employment Outcomes of Tertiary

Education work» Review of Careers Information,

Advice, Guidance and Education (CIAGE)

The funds

$1,940,321

$110,798

$202,429

$39,986 $22,640

$294,190

$225,723

Student Achievement Component L3+ (68.4%)

Student Achievement Component L1&2 (3.9%)

Industry Training and Modern Apprenticeships (7.1%)

Foundation Learning (incl. literacy and numeracy) (1.4%)

Adult and Community Education (0.8%)

Research (10.4%)

Other (8.0%)

Government funding by subsector: chart

Government funding by institution

53%

22%

6%

5%

14%

2013 Total Funding (as at 28/2/13)

8 Universities18 ITPs3 W ānanga20 ITOs733 PTEs and Others

Government funding by subsector: data

$000 2013 2012 Change2013

count8 Universities $1,453,040 $1,421,322 $31,718 818 ITPs $598,818 $628,118 ($29,300) 183 W ānanga $170,268 $169,335 $933 320 ITOs $139,689 $162,370 ($22,681) 20733 PTEs and Others $377,701 $354,500 $23,201 733

$2,739,515 $2,735,644 $3,871 782

TEC’s main appropriations: chart

42%

19%

6%

7%

5%

21%

2013 Funding SAC & ITF/M A breakdown

SAC - UnisSAC - ITPsSAC - W ānSAC - PTEsITF & M AOther Funds

TEC’s main appropriations: dataSAC Skills for Canterbury included with "other funds"$000 2013 2012 ChangeSAC - Unis $1,143,304 $1,118,595 $24,708 SAC - ITPs $534,902 $554,034 ($19,132) SAC - W ān $160,565 $160,844 ($280) SAC - PTEs $191,063 $172,092 $18,971 ITF & M A $139,166 $161,556 ($22,389) Other Funds $570,517 $568,524 $1,993

$2,739,515 $2,735,644 $3,871

Public expenditure on education as a percentage of GDP, all levels of education, 2009

Denmark

Iceland

United States

Sweden

Israel

Ireland

Estonia

Mexico

United Kingdom

Norway

Switzerland

Poland

Spain

Italy

Hungary

Slovak Republic

0%

1%

2%

3%

4%

5%

6%

7%

8%

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Pre-primary Primary and lower secondaryUpper secondary Post-secondary & tertiary

Perc

entage

of

GDP

Public expenditure on tertiary education as a percentage of GDP, 2009

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Per-student expenditure by educational institutions, all levels of education, 2009

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Per-student expenditure by tertiary educational institutions, tertiary education

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PRIO RITY FOCUS

TEC O UTPUTS

Focus on: 1) econom ic growth, 2) learner achievem ent, specifically; M aori and Pasifika, youth, achievem ent of literacy

and num eracy and of higher qualifications, 3) innovative research, and 4) system effectiveness.

Sm art investm ent decisions Provision of inform ation and advisory services

M onitoring sector perform ance and capability

· Investm ent decisions aligned with governm ent goals and priorities

· Funding decisions shift investm ent toward higher perform ing providers, m ore relevant areas of provision and higher quality research

· M onitor the perform ance of Plans and contracts

· Publish inform ation on TEO perform ance, funds, educational perform ance and research

· Provide inform ation and advisory services to the M inister

· W ork closely with agencies across governm ent to strengthen connections between tertiary education, the welfare system and the labour m arket

· M onitoring and analysis of financial, education and research perform ance of TEOs and network

· M onitoring and analysis of TEI governance/m anagem ent capability and ownership risk

· M anagem ent of M inisterial appointm ents to TEI Councils

· Support the developm ent of good practice accountability and perform ance fram eworks including financial and resource m anagem ent

TEC IM PACTS

A m ore sustainable and responsive system

An increased proportion of the population with a tertiary

qualification

· Higher levels of educational attainm ent

· Increased participation rates in higher level qualifications particularly by priority learner groups

· Increased qualification com pletion rates in higher level qualifications, particularly by priority learner groups

· M ore graduates with the skills valued by em ployers

· M ore leading edge research that builds New Zealand’s international research reputation

· M ore high quality research that contributes to econom ic innovation and transform ation

· Growing a world-class, innovative research workforce

Higher quality and m ore relevant research

· TEOs shifting m ore of what they plan to deliver toward areas and levels that are needed by the econom y and that are governm ent priority areas

· M ore TEO s that are well-m anaged and financially sustainable

· M ore TEO s aligning their activities with their expected role within the system

Tertiary Education Strategy,Better Public Services, Prim e M inister’s Priorities,

Business G rowth Agenda,Canterbury Econom ic Recovery, Auckland Strategy,

International Education Leadership Statem ent.

Econom ic growth and productivity

W ith our colleague education agencies, our im pacts contribute to:

Social Cultural Environm ental

A m ore highly skilled, adaptive, innovative and productive workforce M ore NZ citizens fully participating in society, and contributing to NZ’s social and cultural well-being

Tertiary Ed

ucation Co

mmission

Tertiary Ed

ucation Organisatio

nsWho

le of G

overnm

ent R

esults

A world-leading and high-perform ing tertiary education system

GOVERNM ENT NATIONAL OUTCOM ES

W ith other governm ent agencies, this contributes to:EDUCATION – W IDE OUTCOM E

A world leading education system that equips all New Zealanders with the knowledge, skills and values to be successful citizens in the 21st century

Government

Priorities

Tertiary Education Com m ission’s Outcom es Fram ework