Tertiary sector leaders say not enough extra funding has been allocated to institutions facing roll growth, spiralling costs and pressure to increase staff salaries.
While the Government boosted tertiary funding overall by $120 million, it reprioritised spending, reducing or cutting funding in several areas.
The inflation adjustment to be applied to the tuition portion of institutions' base funding for 2010 works out at 1.95% - less than the current inflation rate of 3%.
The low inflation adjustment, coupled with "a collection of small nibbles" from other funding, would likely see Otago Polytechnic's funding about $300,000 less than it wanted, chief executive Phil Ker said last night.
"I think we can cope with that. We have started the process to cope. We're not happy, but we're happy the cut is not three times that size."
It is possible the University of Otago, which received about $240 million in tertiary funding this year, could be about $3 million down in its base funding next year.
However, that figure could not be confirmed yesterday.
A media spokeswoman said on Wednesday the university would not be commenting on any Budget announcements until it had had time to analyse them in detail.
Organisations providing industry training will not receive an inflation adjustment on their funding next year, a decision Industry Training Federation director Jeremy Baker described as "bizarre".
"Less than three months ago, we attended the Prime Minister's job summit where he stated he was keen to determine what could be done to keep up or increase levels of industry training during this recession. [Instead] he has chosen . . . to make the inequities in funding between the sectors even greater than they already are."
Universities would continue to argue their case for increased public investment despite "worrying signs" in yesterday's Budget, the chairman of the New Zealand Vice-chancellors Committee said.
Young Labour member Ella Hardy is hoping as many as 200 tertiary students will march at noon today to protest against the Budget.
Ms Hardy, a third-year University of Otago student, said the Budget had "nothing but missed opportunities for young people and the rest of New Zealand".
She had been hoping it would offer more for the tertiary sector, more money for research and development, more money for student allowances and the reinstatement of $12 million for the Otago Institute of Design.
The march, leaving the university union lawn at noon. will make its way to Dunedin list MP Michael Woodhouse's office in Princes St.
Main changes
Overall increase in tertiary funding from $2.66 billion to $2.78 billion in 2009-10 year
Inflation adjustment of $127 million over next four years
Funding for 60 extra medical school places and 25 extra GP training places
Extra $68 million for research
Injection of $16 million to enhance Karen high-speed telecommunications network
Adult education hobby courses subsidy reduced (saving $54 million)
Reduction in funding to top up salaries (saving $55 million)
Removal of funding for planned New Zealand Innovation Centre (saving $15 million)
Reduction in student scholarship funding (saving $98 million)
Reduced funding for industry training providers (saving $9 million)
