The Government will fork out an extra $21 million over the next two years to help shore up the financially troubled University of Otago.
The extra funding is part of a rescue package for the country's universities which are facing major deficits following drops in student numbers, particularly international students over the Covid years.
Hundreds of jobs are on the line at Otago which says it is facing a $60 million hole in this year's budget.
The dire situation led to Otago joining forces with Victoria University to plead a case to the Government for financial help to address "chronic underfunding".
Education Minister Jan Tinetti announced today an extra $128 million would be pumped into the tertiary education sector by increasing tuition subsidies at degree-level by four percent in 2024 and 2025.
“The Government has heard the concerns of the sector. When we began our Budget process universities and other degree providers were forecasting enrolment increases. The opposite has occurred, and it is clear that there is a need for additional support,” Tinetti said.
Victoria will get an extra $12 million and Auckland University an extra $29 million.
The Government would also review higher education funding, including the Performance Based Research Fund, Tinetti said.
"Today’s funding announcement is a temporary boost for two years. We need to take a thorough look at the funding system during this time.
“The current financial situation of some tertiary institutions points to the need take this broader look into the way our higher education system is funded and financed. Decisions on the scope and approach to the review will be taken before the end of 2023.
“The Government remains committed in supporting and working with the tertiary sector, so it meets the evolving needs of students and continues to make a critical contribution to research and innovation in Aotearoa.”
