CHARLES Sturt University will need to find an extra $9 million in its budget after the government demanded an efficiency dividend, according to vice chancellor Professor Andrew Vann.
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Treasurer Scott Morrison announced the 2.5 per cent cut from university funding grants in 2018 and 2019 in the Federal Budget on Tuesday night.
Over two years, Professor Vann estimated it would see $18 million cut from the investment in students and benefits to the community.
“If you’re going to run a not-for-profit, you need to run a three to five per cent surplus – that’s best practice,” he said.
He said the university kept the surplus to withstand economic shocks, maintenance issues and for re-investing the following year.
Professor Vann likened the efficiency dividend to a backhanded compliment.
Students are also among the losers in the Budget.
They will be asked to fork out an extra 1.8 per cent in fees each year for the next four years.
It will mean by 2021, students will be paying an extra 7.5 per cent.
Professor Vann described the fee hike as “unwelcome” but said it wasn’t as bad as expected.
He said an idea floated before the Federal Budget would have seen students and taxpayers splitting the bill 50-50 for the cost of a university education.
An even split would have meant students would be paying an extra 15 per cent.
Fairfax Media reported the changes would mean fees would increase by a maximum of $3600 for a four-year course, with students paying 46 per cent of their degree cost on average - up from 42 per cent currently.
The cost of four-year teaching and nursing degrees would rise by $1250 to $27,800 and a six-year law degree would rise by $3900 to $71,900.
“We certainly hope that people won’t be deterred from higher education,” Professor Vann said.
“There’s a general expectation that higher education will lead to employment outcomes.”
Speaking last week, Professor Vann said the $9 million was equivalent to 90 jobs.
“We’ll have to get more efficient than what we are, or we’ll have to cut back.”