Tertiary education funding public comment deadline extended

The department of Higher Education and Training has extended the deadline for public comment on its proposed tertiary education funding model.

The public now has until March 31 to comment on the Ikusasa Student Financial Aid Programme (ISFAP) proposed as a possible solution for funding the so-called missing middle students as well as the poor.

The model was last year developed by the Higher Education Ministerial Task team and is set out as a private and public sector financing collaboration.

It has so far been piloted at seven tertiary institutions‚ Tshwane University of Technology‚ Orbit TVET‚ University of Cape Town‚ University of Pretoria‚ University of Venda and the Walter Sisulu University.

While the government has approved the piloting of the model at some schools‚ it’s yet to be finalized and fully implemented with the task team currently conducting a feasibility study.

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"We are conducting a detailed feasibility study in terms of National Treasury Regulations‚ collating and considering public comments for incorporation in the model‚ before submitting the final proposed model for cabinet approval later this year‚" said Sizwe Nxasana‚ head of the task team.

"The feedback is ongoing-there have been many positive comments‚ suggestions for improvement in various areas and some criticism as well‚ especially from those people who are arguing for completely free higher education for all‚" said Nxasana.

Should the model be approved‚ it will see the government pledging for the first time to fund students from middle-class families with incomes below R600 000 a year to the tune of approximately R42 billion.

In this year's budget speech‚ Finance Minister Pravin Gordhan said that‚ "Government stands ready to engage with education stakeholders and adapt financing arrangements as may be required in future years‚ within the scope of available resources".

Adding that government recognises the needs articulated by students in universities and TVET colleges.

An extra R5 billion‚ according to the minister‚ is set to be allocated in addition to the R32-billion injection of funds already allocated for higher education student funding over the medium term.

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Dawie Roodt‚ Chief Economist at The Efficient Group‚ cast doubt on that figure.

"I don’t believe it’s going to be R40 billion‚ I believe it’s going to be significantly less than that‚ simply because a shock like this on a system simply cannot be absorbed‚" said Roodt.

"If we eventually get to that sort of money‚ it will be a long period of time before we get that‚ so it will be a gradual process."

Roodt said the funds could come from two possible sources.

"The first one is‚ of course‚ you need to increase certain taxes and the second source is that you have to re-channel money – take money away from existing expenses and spend it then on this specific item. Those are the only two options available.

"Unfortunately‚ the reality is that the state finance at the moment is in such deep trouble‚ that neither of those two options are really that easy. It’s extremely difficult to cut back on state spending for political reasons and it’s extremely difficult to collect more revenue‚ simply because the economy is not doing well.

"So‚ I’m afraid it’s going to be extremely difficult to get more money."

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University of Johannesburg Economics professor‚ Hinaunye Eita‚ echoed this. "Additional revenue between R23 and R24 billion needs to be raised and in order to raise that‚ you would have to raise some taxes because that is the main source of government revenue."

Roodt‚ however‚ says that this would not be feasible in the long run as the tax would eventually form a part of the greater pool of taxes which is counterintuitive.

"To earmark a specific tax for this is usually not a good idea‚ because we’ve tried it in the past and we’re currently trying to use that and the moment that you earmark a specific tax for a specific expense item‚ then that tax becomes part of the pool [of taxes] eventually."

- TMG Digital