KEY POINTS:
New Zealand's eight universities may have to trim their collective budgets by $14 million next year unless the Tertiary Education Commission (TEC) can find additional money to meet the shortfall.
That may require Cabinet to consider allocating further funds, having already upped the 2008 tertiary funding pool by $43 million to $1.77 billion recently to cover higher than expected enrolment predictions.
Universities are trying to finalise their 2008 budgets and their first three-year course delivery and funding plans ahead of a new TEC funding regime, which begins on January 1.
TEC has yet to confirm funding for next year, despite negotiating with universities for several months.
The University of Otago was told on Tuesday it was unlikely to get the almost $180 million in TEC funding it expected - news which came three hours before the varsity's plan was to be adopted by the university council.
Vice-chancellor Professor David Skegg expects to hear the final funding allocation next week. Auckland University of Technology vice-chancellor Derek McCormack yesterday said he too had been told by TEC there was a funding shortfall for next year.
"We were told a certain level of funding would be available, depending on the outcome of a Cabinet decision."
AUT had been told it would have to consider "various scenarios" if TEC was unable to give it the amount negotiated to date, Mr McCormack said.
That meant reviewing budgets or finding ways to fund operations without Government funding.
Mr McCormack said he was still negotiating with TEC on what AUT's final funding figure might be. He hoped that would come soon.
That hope was echoed by Gabby Devila, a spokeswoman for the University of Auckland, and Professor Roy Sharp, the vice-chancellor of the University of Canterbury. Both said TEC had not yet confirmed funding allocations.
Otago Daily Times
