The Australian | 31 May 2013
Half of a government rescue package of $200 million (over 4 years) for Victorian TAFEs has been purloined from earlier allocations, despite new figures showing the embattled system has moved closer to the wall. Victoria’s 14 standalone TAFEs managed a combined operating surplus of just $58.5 million last year, down from $98m in 2011 and $192m in 2010.
This leaves each institute with an average $4m surplus – compared to an average $57m at the state’s eight universities – to cover unforeseen expenses and obligations such as long service leave and capital works co-contributions.
The Victorian Auditor-General assessed just four TAFEs as being at low financial sustainability risk, down from seven in 2011.The found that most TAFEs’ assets were being consumed faster than they were being replaced, with many institutes unable to fund asset renewal from the cash generated by their operations.