Another key development is that - despite an uproar from private and public tertiary providers - provision for an export levy on foreign fee-paying students has been passed and will likely add $3 million to Government coffers from next year.
This week's Budget announcement will detail exactly how money for the sector will be distributed.
It is understood that institutions will be rewarded with extra funding for providing courses that are in line with Government "goals", including developing Maori and Pacific Islander participation, building base skills, and any studies that help to build the knowledge economy.
Late last week, a $35 million pool of money was distributed to various institutions that had shown a willingness to build projects that satisfied Government goals.
A "strategic change fund" of $10 million will also be distributed to institutions that follow Government objectives by July next year.
Specifics of the new tertiary funding system have been kept under wraps, but it is thought institutions will be more heavily subsidised for science and mathematics programmes, while over-subscribed courses such as law and accountancy will be capped.
The University Students Association says this could mean that some courses will eventually disappear if they are judged to be of no use to business and industry.
Association co-president Andrew Campbell said those studying subjects such as philosophy, classics or "soft" sciences like ecology or conservation faced an uncertain future.
He said such subjects might not have a "strategic fit".
Not all providers might be funded to teach certain courses, he said. Departments might be closed, and students might have to move to institutions that did teach those courses, thus facing an extra expense.
First step on way to tailor-made workforce
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