UCOL will officially transition to Te Pūkenga on November 1. Photo / Bevan Conley
UCOL will officially transition to Te Pūkenga on November 1. Photo / Bevan Conley
Te Pūkenga is predicting an annual loss of $63 million, which could result in redundancies at UCOL's Whanganui campus and other polytechnics.
That's despite the deficit being less than the March forecast of $110 million.
Te Pūkenga is the new tertiary institute that is taking over polytechnics and most industry training organisations.
The organisation's publicly available financial forecast document said the reduction had been achieved through holding vacancies, and prudent cost and expenditure controls.
Te Pūkenga chairman Murray Strong said the financial situation could result in redundancies.
"We can balance our books if we review the costs we currently have and plan for a unified future," it stated.
Te Pūkenga acting chief executive Peter Winder said the updated forecast made it closer to the deficit of $59 million budgeted at the start of the year.
"We will continue to work together with our network to carefully manage our financial situation."
Winder said the revised forecast was not without risks.
"It includes potential revenue from two land sales that we expect to be completed by the end of the year, but they may not be."
He said income from domestic enrolments was down $50.9 million on last year.
UCOL Whanganui Campus manager Bronwyn Paul said UCOL Whanganui had 352 equivalent full-time students (EFTS) for 2022, as of mid-July.
"At the same time last year we had 398 ETFS, 405 EFTS at this time in 2020, and 423 at the same time in 2019."
She said staff turnover at UCOL Whanganui had been fairly consistent each year, with 17 people leaving in the period from September 2021 to September 2022, compared to 18 people from September 2020 to September 2021.
UCOL chief executive Linda Sissons said the new system would have a stronger focus on employers, which long-term would increase the number of employers in vocational education.
Peter Winder said Te Pūkenga was committed to addressing its short-term financial situation. Photo / Supplied
UCOL formally transitions into Te Pūkenga on November 1, and the two will continue to co-brand through to March 2023.
Winder said once the transition was complete, Te Pūkenga expected around 50 per cent of its learners to be in work-based learning.
In 2020, PWC commissioned a report - "Where next for tertiary education? How the Covid-19 crisis can be the catalyst to reboot towards a stronger sector".
"An overwhelming 83 per cent of undergraduate students expressed interest in an integrated employment and education offering, had one been available," Sissons said.
The Unified Funding System, which would fund Te Pūkenga, would significantly increase funding per learner for in-work learning while reducing funding per learner for campus-based and online options, the document said.
When asked by the Chronicle what the negative effects of reducing campus-based and online learning funding could be, Sissons said the new arrangements would mean Te Pūkenga could support work-based, campus-based, and online learning in a one-stop-shop way.
"Learners will be able to move easily between work-based and campus-based training, and will be able to continue learning even if their employment situation changes," Sissons replied.
Students currently enrolled with UCOL who graduate in 2023 will be awarded a co-branded certificate. Learners enrolled for 2023 will be awarded Te Pūkenga certification.
"We expect to carry out our business as normal during and after the transition," Sissons said.
Last week, Winder visited the Whanganui campus and asked for feedback on the Te Pūkenga organisational direction and design document.
A summary of the feedback will be released to the public once it is collated.
Staff at UCOL/Te Pūkenga said they could not comment to the media.
