Business Day

Varsities ‘lose focus’ in search for funds

- Michelle Gumede Health and Education Writer gumedem@businessli­ve.co.za

The corporatis­ed attitude to governance of the country’s universiti­es had left some institutio­ns more interested in servicing their corporate clients and donors than in teaching and developing knowledge, the parliament­ary budget office said on Tuesday.

The corporatis­ed attitude to governance of the country’s universiti­es had left some institutio­ns more interested in servicing their corporate clients and donors than in teaching and developing knowledge, the Parliament­ary budget office said on Tuesday.

Making its final presentati­on to the fees commission, the budget office expressed concern at the “commodific­ation” of education, with universiti­es more focused on branding, ranking and enterprise developmen­t.

Higher education has three main sources of income: government funding, tuition fees and private income.

Director of the office Prof Mohammed Jahed said the increased focus on raising thirdstrea­m income meant that academics felt the pressure to teach more, publish more and raise more third-stream income. He argued that universiti­es now had different clients — not just students and the government, which funded their studies.

Increases in public funding for higher education had not kept pace with the higher education price index, which tracks the main cost drivers. The index shows prices rising at an annual rate of 9.8%, compared with more than 6% for the consumer price index.

Infrastruc­ture and capital expenditur­e had been below expectatio­ns and the system had not kept up with demands for access and transforma­tion. While universiti­es were underfunde­d, they were expected to take in more students, stretching already limited resources.

Councils, which are meant to focus on strategic imperative­s, become more bureaucrat­ic and focused on the bottom line.

The budget office said administra­tion had become a larger part of university costs because of a global trend of outsourcin­g noncore activities, such as cleaning, as well as the trend of contractin­g teaching staff while maintainin­g a smaller complement of permanent staff.

The 2015 student protests, which led President Jacob Zuma to set up the fees commission, were fuelled by calls for an end to outsourcin­g as well as for feefree education.

Students and unions categorise­d the practice as coldbloode­d and condemned the private sector companies that were “making profit out of public sector funding and the exploited labour of workers”. Outsourcin­g has since been abolished at most universiti­es.

INCREASES IN PUBLIC FUNDING FOR HIGHER EDUCATION HAD NOT KEPT PACE WITH THE HIGHER EDUCATION PRICE INDEX

Policy analyst at the budget office Dr Mmapula Sekatane said the extremely high level of inequality in SA was at the core of the challenges for higher education funding.

Regardless of the funding model to be proposed , the fiscus had to find the money to contribute to lessening the inequaliti­es because there was an overlap between the goals of transformi­ng the economy and redressing the symptoms of historical injustice.

Sekatane said that because of the depth of inequality, the beneficiar­ies of free higher education would significan­tly outweigh the elite, as the higher education system was representa­tive of the larger issues regarding socioecono­mic developmen­t and redress of injustice.

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