A Tertiary Education Commission (TEC) manager has given the tertiary sector a "glimmer of hope" funding might be available to assist with new developments and deferred maintenance.
In its recent Budget, the Government scrapped the contestable tertiary capital expenditure fund and the sector was told it would have to plan to meet those expenses from operating surpluses.
Like most other polytechnics, Otago Polytechnic budgets for only small annual surpluses.
Its surplus this year is expected to be about $500,000.
But at a meeting of the Otago Polytechnic council on Thursday, TEC tertiary network director David Nicholson said institutions might be able to obtain money from a new contestable "whole of Government" capital fund.
He urged institutions to "re-engage" with the TEC and complete detailed capital assessment management plans.
That way, TEC would be able to put up a list of tertiary projects for consideration by the fund managers.
"So that is a glimmer of hope for us?" Otago Polytechnic chief executive Phil Ker asked.
"Yes," Mr Nicholson replied.
Mr Ker said Otago Polytechnic had already completed a detailed plan which showed it required $15-$16 million in the next few years to bring buildings and equipment up to date, and to deal with deferred maintenance.
He said he believed other polytechnics' requirements would be about the same, and estimated $1 billion could be needed across the sector.
Mr Nicholson said he did not doubt that estimate.
He said TEC staff would work with Otago Polytechnic and others over the next few months to complete a capital assessment plan.
Another change announced in the Budget was that TEC would work more closely with those institutions deemed to be "at risk" financially, taking a more hands-off approach to those performing well.
Mr Nicholson said TEC would be introducing a "risk-rating graph" after assessing institutions' long-term sustainability and financial viability.
The graph would be made public and institutions would know where they sat, he said.
