The final 2009-10 budget outcome released today shows that exenditure on higher education blew out $200 million more than expected at the time of the May 2010 Budget. And even then they were forecasting a big increase on spending on top of what had been anticipated in May 2009.

What’s driving these financial blow-outs is a massive rush to enrol students before the 2012 lifting of caps on funded enrolment (which has not been legislated).

An article in the AFR a couple of weeks ago reported data showing 17 universities appear to be enrolled above the current 10% above-target funding cap.* Six are 17-19% above their original target number of funded students. For the additional students above the 10% cap universities get the student contribution amount (commonly called the HECS payment), but no Commonwealth subsidy.

This means that for unis the financial attractivness of over-enrolment varies a lot depending on discipline. For law and business courses where the Commonwealth subsidy is low anyway little is lost by over-enrolling. But in courses where the subsidy is high – 80% of revenue for science, for example – a lot is sacrificed. Continue reading “Out-of-control Vice-Chancellors?” →