2 Tertiary Education Strategy
The great majority of funding for TEIs comes from the Government’s two largest tertiary education funds.
- The Student Achievement Component Fund (SAC) totalled over $2 billion in 2015 and pays the costs of teaching and learning calculated by the type of study and the number of equivalent full-time students (EFTS).
- The Performance-Based Research Fund (PBRF) totalled around $300 million in 2015 and encourages and rewards excellent research in New Zealand’s tertiary education sector. This involves assessing the quality of research carried out by degree-granting organisations (and their wholly owned subsidiaries) and funding them on the basis of their research performance.
Up to 5 percent of a TEI’s total SAC funding is “at risk” every year, depending on the institution’s measured educational performance based on four educational performance indicators:
- qualification completion rate, measured as successful qualification completions as a proportion of total enrolments in a given year
- course completion rate, measured as successful course completions as a proportion of course enrolments in a given year
- retention rate, measured as the proportion of students in a given year who complete a qualification or re-enrol at the same organisation in the following year
- progression, measured as the proportion of students who progress to a higher level of study after completing a qualification in the previous year.