The Australian | 29 September 2012
Just five standalone TAFEs in Victoria expect to be in surplus next year, down from ten last year, even though NCVER statistics reveal that Victoria now spends more than any other state on vocational training. It spent almost $1.2 billion, nearly $150m more than its larger neighbour NSW and over $300m more than it had outlayed the previous year.
The leaked summary of Victorian TAFE business plans shows that six TAFEs are expecting deficits ranging from about $600,000 to $8.9 million. The operating results of Victorian TAFEs will be worse if the state government doesn’t meet TAFEs’ requests for cash advances and other types of new funding.
While Skills Minister Peter Hall said the NCVER data contradicted the “scaremongering and misinformation” of the Commonwealth government and unions (to which, of course, the Commonwealth government is “held hostage”):
With a population that comprises 24 per cent of all Australians, Victoria provided 33 per cent of all State and Territory funding for vocational education delivery and support last year.
The state government says the ballooning costs have forced it to wind back training funding, but it is TAFEs that will bear the brunt of an estimated $400m cut next year.
But commentators point out that TAFEs have been largely missing out on the increased spending, with payments to non-TAFE providers snowballing from $275m in 2010 to $499m in 2011.
