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Regional disadvantage
19 December 2009
In preparation for the new higher education budget arrangements due to be implemented in 2012, the Commonwealth is reviewing its current funding mechanisms. One of these that is of particular interest to our University and region is the Regional Loading Scheme, which provides additional funding to non-metropolitan institutions based on the numbers of domestic, undergraduate students being taught face to face on-campus.
The loading recognises the higher expenses associated with regional locations, the smaller campuses involved and the generally less developed regional economies away from the capital cities. The definition of just what constitutes a regional university has been hotly debated. For example, within this scheme Wollongong is considered regional while Newcastle is not. There are five categories of regional disadvantage recognised based on distance from the nearest capital city and size of the university. Charles Darwin University is in the highest funding band (30 percent loading), the University of the Sunshine Coast is in band three and receives a 5 percent loading and the lowest category has a 1.5 percent loading on its operating grant. There is little agreement about the rationale for the bands or whether the loadings reflect actual cost differences. However, the loading received is an important component of the budget for a smaller institution such as ours.
Paradoxically, given the current government’s interest in increasing university enrolments, our regional loading per student has been declining steadily since 2006 because we are growing so quickly. The loading has decreased by almost $100 per student place over the last 4 years, which is a notional loss of around $400,000 for the coming year’s budget. This is funding that otherwise would have been directed to the core business of the university in teaching, research and engagement.
How has this come about? The last adjustment to the Regional Loading Scheme was made in 2006 at a time when enrolments at most regional campuses around the country were in decline. The government froze the scheme at 2006 enrolment levels and has simply indexed the amount each year since then based on student numbers that are now four years out of date. The outcome has been great news for many recipient universities, where enrolments have actually declined. However, for a rapidly growing place like USC it has not been a just outcome. Justice considerations aside, the sector generally supported a model that favored the majority and this left USC to complain in vain and grow with a reduced level of funding per student, relative to competitor institutions.
The Bradley Review, tabled a year ago now, is the basis for the changes about to be made in funding the university sector. It was quite scathing about the Regional Loading Scheme and recommended a complete overhaul. During the consultations that have taken place between USC and the Commonwealth to date, we have reinforced key points emphasised by Bradley, especially the lack of incentive within the existing scheme for regional universities to recruit additional students and/or establish new degree programs that will contribute to future regional prosperity and wellbeing.
We are hopeful that the replacement model, when it emerges, will provide this region with the support it needs to continue its educational journey and reap the full benefits that are potentially available to the community through an appropriately funded university.
Professor Greg Hill is Acting Vice-Chancellor and President at the University of the Sunshine Coast.