Skills shortage not addressed

Governments are still not providing growth funding for TAFE, despite the skills shortage, writes PHIL BRADLEY.

After eight years of federal and state government funding cuts, what was urgently needed in the NSW Budget was a dramatic increase in TAFE funding to address the skills shortage crisis. Unfortunately, the NSW Government made no attempt to even partially address Federation's claim for the additional $250 million per year needed to restore TAFE funding to the 1998 level in real terms. The total TAFE Education Services budget allocation for 2006-2007 is $1646 million, an increase of $39.0 million (+2.4 per cent), compared to 2005-2006 revised costings. Employee related expenses have been allocated $36.5 million more (+3.1 per cent). This is arguably enough to cover teacher and other employee salary increases, but provides no funding for the growth needed for TAFE to deliver more pre-vocational, pre-apprenticeship and vocational courses in areas of skills shortage.

The revised expenditure for the 2005-2006 financial year shows that although the budget was topped up by $45.5 million, this was necessary to cover salary increases and the increases in pay for TAFE part time casual teachers arising from the Federation's pro rata case win. There was therefore no extra money for servicing the actual growth in student hours of 3.3 per cent. This means another significant cut in real terms and a continuing increase in workload for TAFE teachers and other employees, and/or a reduction in service levels for students.

Capital expenditure is proposed to rise by $3.5 million to $87.3 million (+4.1 per cent), after last year's budget allocation was underspent by $5.2 million.

The budget predicts no growth in student hours in 2006/07. This is in itself an amazing indictment of federal and NSW government failure to address skills shortages.

TAFE total revenue is expected to increase by $7.3 million (+3.0 per cent) to $251 million. This is mostly through increased service and course charges to students. TAFE student fees are set to rise by $1.5 million (+2.2 per cent).

Phil Bradley is the Assistant General Secretary (Post School Education).

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Last Modified: 23 Jun 2006