TAFE upbeat despite deficit
THE Gordon TAFE is confident of future growth, despite a $7.3 million deficit in 2019.
A recent report tabled by the Victorian auditor-general found eight TAFEs, including The Gordon, posted losses in 2019, while four generated a profit, compared with 11 in 2018.
The Gordon operated at a $1.1 million surplus in 2018 be
Find more information at camp4cancer.org.au/geelong-camp-4-cancer or the Camp4Cancer Geelong Facebook page. fore dropping to the $7.3 million deficit last year, its 2019 annual report shows.
Board chairman Justin Giddings said despite the “adverse operating response”, the institution’s future looked positive.
“The board and leadership team are focused on financial sustainability and have developed growth strategies to improve performance,” he said in the annual report. “Our financial reserves remain strong and the board is confident of future growth in the coming years.”
The auditor’s report noted The Gordon recorded a -10.7 per cent net result margin for 2019, putting it in the “high” risk category for financial sustainability.
The figures come after the first year rollout of the state government’s $172 million free TAFE program.
The audit report said while free TAFE would help alleviate long-term sustainability risks, the sector must continue to increase other revenue streams.
The government announced this week an extension of free TAFE under a new $163 million package.
It will create 10,000 extra free TAFE places to help drive economic recovery from the coronavirus pandemic.
“We’re really excited to be able to expand our free course offering, providing an opportunity for people to re-skill in areas that will serve the community strongest as we collectively strategise a way forward, post COVID-19,” The Gordon CEO Joe Ormeno said.
“Our current free TAFE curriculum includes a range of early childhood education and care, hospitality, health and tourism opportunities among others, however we are pleased to now be able to expand our programs.”
South Barwon MP Darren Cheeseman said free TAFE had been “life changing” for the local community.
“This significant announcement will give more residents the opportunity to study close to home and get a good local job,” Mr Cheeseman said.