$1.2m bonus for polytech

Otago Polytechnic chief executive Phil Ker is a happy man. After months of funding worries, the institution has secured an unexpected boost of $1.2 million for next year.

"It's like an early Christmas present," he said last night.

But the money will not save about 10 full-time equivalent polytechnic staff positions which have been cut from community learning centres and the school of art in the past month.

The polytechnic was anticipating a $3 million drop in government funding from 2011 and the redundancies had been made "looking at the long term", Mr Ker said.

The extra money meant next year's anticipated operating surplus was looking more certain, and gave the polytechnic breathing space as it prepared for 2011, he said.

"It provides us with a very real and sizable buffer.

"It is an insurance policy against semester two enrolments next year being down as the economy picks up and more people find jobs. 2011 remains a challenge, but one step at a time."

The polytechnic was advised it had gained a large share of the $8 million in the discretionary fund because its student retention and success rates for all levels of learning were good, and much higher than the national average.

Mr Ker said he was thrilled about that.

"It is nice, finally, to be recognised for the fine job we are doing in terms of educational outcomes.

"It is nice to have the dice roll our way, even if it is only for a year."

Polytechnics will renegotiate their three-year efts caps and funding levels with the Tertiary Education Commission (TEC) again next year.

Mr Ker said the latest funding gave him hope the TEC would provide more performance-based funding and reward institutions like Otago that performed well.

The grant is the second recent financial boost for the institution.

It was granted 84 places in the Government's Youth Guarantee scheme, which aims to ensure 16- and 17-year-olds at risk of dropping out of formal education are offered places at polytechnics.

If all 84 places are filled, Otago will receive $840,000.

Mr Ker said all the Youth Guarantee funding would be spent on those students to ensure they received the support to enable them to succeed.

Funding boost

• From Tertiary Education Commission discretionary fund.

• One-off grant for 2010 only.

• Will enable Otago Polytechnic to enrol 144 equivalent full-time students (efts) over its cap of 3350 efts.

• Extra places already allocated in midwifery (35), information technology (20), visual arts (10-15) and lesser numbers in nursing and engineering.