Agency Budget Statements - DETYA - Section 1

• Department Overview

• Strategic Priorities

• Competitive Tendering and Contracting

• Appropriations

• Measures Disclosed in the 2001-02 Budget Affecting all Output Groups

• Appropriations to the Department of Education, Training and Youth Affairs - 2001 - 02

• Budget Measures - Departmental Summary

DEPARTMENT OVERVIEW, APPROPRIATIONS, BUDGET MEASURES SUMMARY

Departmental Overview

The Department provides advice to the Government and administers programmes to achieve the Commonwealth’s objectives for education, training and youth affairs.  For 2001-02, the Department will continue to implement three specific Outcomes.  They are:

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Strategic Priorities

In implementing each Outcome, the Department is guided by a number of specific strategic priorities.  The strategic priorities for 2001-02 build on those for 2000-01 and further pursue the implications of the knowledge economy for education and training.

Outcome 1: School systems provide their students with high quality foundation skills and learning outcomes.

The strategic priorities for Outcome 1 for 2001-02 are: 

• Improved learning outcomes for all students through nationally comparable standards and reporting: in the context of the National Goals for Schooling, the Department will work with the States, Territories and non-government education authorities to promote national benchmarks for student achievement, agreed performance measures in key areas (including literacy, numeracy, science and IT skills), performance targets and improved accountability and reporting.

• Improved learning outcomes for Indigenous students: the Department will continue to ensure that measurable improvements are made to the participation and learning outcomes of Indigenous students through the National Indigenous English Literacy and Numeracy Strategy and the Indigenous Education Strategic Initiatives Programme.

• Enhanced quality of Australian school education: the Department will enhance the quality of school education by strengthening teacher quality; promoting school and community awareness of Australia’s democratic heritage; improving reporting on school outcomes to parents and the community; lifting the capacity of schools to support national innovation; and through the National School Drug Education Strategy.

• Improved transitions of young people through school and from school to work and/or further education and training: the Department will continue to enhance enterprise and career education and vocational education and training in schools, including through the new Enterprise and Career Education Foundation and implementation of the Government's response to the Youth Pathways Action Plan Task Force Report Footprints to the Future. 

Outcome 2: Post-school education and training providers assist individuals achieve relevant skills and learning outcomes for work and life.

The strategic priorities for Outcome 2 for 2001-02 are:

• Strengthen the responsiveness of the post-school education and training system to the varying needs of individuals and industry: the Department will work with the States, Territories and education providers to ensure that post-school education and training providers respond to individual and industry needs by increasing opportunities for participation; greater flexibility in delivery; user choice; and an improved ability to address current and future needs.  There will be continued emphasis on the growth of New Apprenticeships and the development and take up of Training Packages.  Additional undergraduate places and the introduction of a postgraduate loans scheme will expand access and opportunities.

• Promote quality at all levels of post-school education and training: the Department will ensure that responsiveness is underpinned by quality provision.  There are nationally agreed comprehensive quality assurance frameworks for both higher education and vocational education and training.  The Commonwealth is also encouraging the development of a fully integrated national VET system and nationally consistent legislation.

• Help young people to contribute actively to their communities and to make well-informed choices about their careers: the Department will continue to promote strategies to improve the national perception of the value and status of young people, and to increase their opportunities to develop their personal skills, make informed career choices and achieve a successful transition from school to work or further education and training.

Outcome 3: Australian institutions advance the knowledge base, contribute to the national innovation system and participate effectively in the global development of knowledge and skills.

The strategic priorities for Outcome 3 for 2001-02 are to:

• Strengthen the ability of universities to generate and transfer new knowledge and develop the research skills of the workforce: the Department will further develop the policy and funding framework for higher education research and research training announced in the Government's 1999 White Paper Knowledge and Innovation and will implement research infrastructure initiatives announced in the Government’s 2001 Innovation Action Plan, Backing Australia’s Ability. 

• Further the internationalisation of Australian education and training: the Department will continue to develop the policy and legislative framework to support the internationalisation and export of Australian education and training services, including the regulation of the education export industry and developing international research linkages via the new suite of Education Services for Overseas Students (ESOS) legislation.

The strategic priorities for 2001-02 will be supported through a range of Budget Measures which have been announced by the Government:   

• The Innovation Action Plan - Backing Australia's Ability, announced by the Government on 29 January 2001, will strengthen innovation and foster excellence in science and technology.  As a result of this Budget Measure funding will be administered by the Department and the Australian Research Council.

• The Government will provide additional undergraduate student places for regional higher education institutions and campuses from 2002.  The new places will increase access in regional areas and address increased demand due to demographic growth.  

• The Commonwealth will provide additional funding of some $230 million over the period 2001-02 to 2003-04 under a proposed new Australian National Training Authority Agreement to support the operations of the vocational and training sector and, in particular, expand New Apprenticeship training opportunities and further develop the broad skills base needed to support innovation in industry. 

• The Government has provided an initial response to the Prime Minister's Youth Pathways Action Plan Taskforce Report Footprints to the Future and has been directed to improve the quality of life of Australia's young people by ensuring that they make effective transitions through school and from school to work and/or training, and full community participation.

• The Australians Working Together – Helping People To Move Forward package includes six measures related to education and training.  Funding under this initiative is directed to the delivery of vocational education and training through ANTA, literacy and numeracy programmes and assistance to Indigenous students.  The six measures include two which are specific to DETYA and four which, although sponsored by other portfolios, contain elements related directly to education and training (and for which funding has been appropriated to the portfolio).

Effectiveness Indicators

The Commonwealth Government does not solely or directly control outcomes for education and training in Australia.  It works with the States and Territories, non-government authorities, education providers and industry.  Outcomes for education, training and for young people are also affected by prevailing economic and labour market conditions and, in some cases, international circumstances.

Within this context, the Department has identified a number of broad measures that can be used as a guide to the overall effectiveness of Australia’s education and training system.  They are set out in the remainder of this chapter.  During 2001-02 the Department will continue to strengthen this set of indicators. 

It should be noted that because of significant measurement issues relating to the overall effectiveness of education and training, care is needed when interpreting this performance information.

Educational Participation

Educational Participation Rates Across the Three Sectors

Participation rates in schooling and in post-school education and training are key measures of the effectiveness of the education and training system.  Overall, an effective system achieves high participation in schooling and post-school education and training, although in the short term this can also be affected by economic conditions.  We should also continue to see an increase in participation of Indigenous Australians, across all sectors of education.

• In 1999 the education participation rate of 15-19 year olds, measured across all sectors, was 80.3 per cent and 34.7 per cent for 20-24 year olds.  In 1995 the figures were 78.7 per cent and 30.2 per cent respectively.

• In 1999, 19.6 per cent of 15-19 year olds and 18.9 per cent of 20- 24 year olds were in publicly funded Vocational Education and Training (VET).  In the same year, in the higher education sector there were 10.7 per cent of 15-19 year olds and 15.5 per cent of 20-24 year olds.

• In 2000, there were 112,926 Indigenous school students compared to 87,241 in 1995; for higher education the figures were 7,350 and 6,805 respectively.  In the VET sector in 1999 (latest figures available) there were around 50,800 Indigenous students compared to 26,100 in 1995. 

 Performance Information: 

Participation rates in schooling and post-school education and training remain high and there is increased participation of Indigenous Australians.

School Retention Rates to Year 12

 A key indicator of the overall effectiveness of the system is the degree to which students continue to Year 12.  Bearing in mind prevailing economic conditions, an effective system would ensure that people leaving school have the skills necessary for work, further education and training and for active participation in society.   In addition, if the system is effective, we should continue to see a closing of the gap in retention rates between Indigenous Australians and the rest of the population.

• In 2000, the overall Year 12 retention rate for the Australian school population was 74.2 per cent, with a retention rate for Indigenous students of 38 per cent to Year 12.

• In 1995 while the retention rate was 72 per cent for all students, the retention rate for Indigenous students to year 12 was 30.6 per cent.

  Performance Information:

Retention rates to Year 12 remain high and there is a reduction in the gap between retention rates for Indigenous Australians and the rest of the student population.

Apprenticeships and Traineeships

An overall measure of the effectiveness of Australia’s training system is the number of people undertaking apprenticeships and traineeships.  Clearly, numbers in training will be affected by the state of general economic conditions – any slowdown in the rate of growth of the economy may inhibit growth in apprenticeships and traineeships.   Nonetheless, we would expect that if our system is effectively meeting both the needs of people looking for work (either through apprenticeships and traineeships on the job or as part of school-based programmes) and the needs of industry, there will be high numbers of people in training.

• For 1999 there were 256,500 people in training.  This compares to 136,000 people in training in 1995.

Performance Information:

There are a high number of New Apprentices in training to meet the needs of industry and individuals.

Educational Outcomes

Improved Literacy and Numeracy Outcomes

A measure of the overall effectiveness of Australia’s education and training system is the level of literacy and numeracy proficiency of school students.  The attainment of appropriate literacy and numeracy skills in the early years of schooling provides the foundation for learning and is essential if children are to participate effectively in further education and training and be active contributors to the Australian community. 

Improving the literacy and numeracy performance of Indigenous students and closing the gap in literacy and numeracy achievement between Indigenous school children and the rest of the population is also an essential measure of the overall effectiveness of the system. 

•  In 1999, nationally, 86.9 per cent of all Year 3 students achieved the Year 3 Reading benchmark compared to 66.1 per cent of Indigenous students.

Performance Information:

School children attain the nationally agreed literacy and numeracy standards or benchmarks and there is an overall improvement in performance and a reduction in the gap in attainment levels between Indigenous school students and the rest of the population.

Destinations of School Leavers

The effectiveness of the education and training system can be measured in terms of the proportion of school leavers in full-time employment or post-school education and training.  The rates of full-time employment for young people and enrolment in post-school education and training are likely to be affected by the level of economic growth.  That said, if the system is effective, we expect that a high proportion of recent school leavers will be either in full-time employment or in post-school education and training.

• In 2000, there were 60 per cent of 1999 school leavers aged 15-24 years old in part or full time post-school education and training.  Some 35 per cent of school leavers were in the labour force and not enrolled in education: 15.9 per cent in full time work; 11.2 per cent in part time work and 7.9 per cent unemployed. Five per cent were not in the labour force or in education.

Performance Information:

A high proportion of school leavers are engaged in full-time employment or in post-school education and training.

Educational Attainment Levels of the Adult Population

A further measure of the overall effectiveness of Australia’s education and training system relates to the educational attainment of Australia's adult population. Taking into account that the education levels of the adult population generally move fairly slowly, we would expect that, if the post-school education and training system is responsive to the diverse preferences of individuals, the education attainment levels of the adult Australian population would rise gradually over time.

• In 1999, 44 per cent of the adult population held a post-school qualification.  In 1995, the figure was 41 per cent.

 Performance Information:

The level of educational attainment of the Australian population continues to increase over time.

 Unemployment experience by level of educational attainment

An effective education and training system would expect to show an advantage in the labour market by those who have achieved higher levels of education.   In 1999 of those who:

• did not complete the highest level of school, 10.8 per cent were unemployed;

• completed the highest level of school, 7.7 per cent were unemployed;

• had a vocational qualification, 5.6 per cent were unemployed;

• had an undergraduate diploma or associate diploma, 5.3 were unemployed;

• had a post graduate diploma or bachelor degree, 3.2 per cent were unemployed; and

• had a higher degree, 1.9 per cent were unemployed.

Performance Information:

The level of unemployment falls with an increasing level of educational attainment.

Completion rates for research degrees

Research training represents one of the most significant areas of national investment in research, and the provision of research training is an important distinguishing feature of universities.  The Government has recently introduced incentives and strategies that will encourage universities to improve:

• the proportion of commencing research students who subsequently complete their degrees; and

• the speed with which research students complete their qualification. 

We expect that research student completion rates would improve over time.  As a benchmark, the proportions of masters and doctoral research students commencing full-time in 1995 who completed their degrees by the end of 1999 were 29 per cent and 36 per cent respectively. 

Performance Information:

There is an overall improvement in research student completion rates over time. 

The Department has also developed performance measures for each Outcome.  These performance measures relate to the Department’s strategic priorities, the Administered Items under each Output Group and Departmental Outputs.  Details about the measures are in the Outcome chapters which follow.

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Competitive Tendering and Contracting

DETYA commenced a review of its corporate services in July 1999 as part of Government’s Performance Improvement Cycle (PIC).   The objective of the review is to determine the most cost effective means of delivering services. 

In line with Government’s decision to make it mandatory for services to be market tested, DETYA is well advanced in its corporate services market testing programme.

The Department has completed market testing its Office Services, which showed that continued management of those services by DETYA employees achieved the best overall value for money.    

DETYA is in the process of separately market testing its Human Resources and Financial Services. The outcomes of market testing these services are expected to be known in the first half of the 2001-02 financial year.  A contract for Facilities Management Services is currently being re-tendered.  DETYA will continue market testing  its remaining corporate services at various stages during 2001 to 2003. 

Following the Government’s response to the Review of the Implementation of the Whole of Government Information Technology Outsourcing Initiative (“the Humphry Review”), DETYA is proceeding jointly with the Department of Employment, Workplace Relations and Small Business (DEWRSB) to implement the Government’s IT Outsourcing policy through a segment-by-segment approach.  Tenders covering data centre operations, voice services and the supply and maintenance of desktop peripherals will be released to the market in the coming months.  Further segments will be market tested progressively during 2002.      

The management of a range of scholarship programmes has been contracted out since 1996 to Language Australia, SMEC International Pty Ltd and IDP Education Australia Limited.

AEI has undertaken a select tender for a project to determine options for the most effective branding position for Australian education and training in overseas markets.  The project will identify a brand position which differentiates Australian education and training from those of its major competitors, the United States of America, and the United Kingdom, and applies across the four sectors of education and training.

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Appropriations

The total appropriation for the Department in the 2001-02 Budget is $12.152 billion.

Table 1.1, below, shows the total appropriations for the Department of Education, Training and Youth Affairs for 2001-02 by the three planned outcomes, by Administered Expenses and price of output appropriation. 

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Measures Disclosed in the 2001-02 Budget Affecting all Output Groups

Adjustment to Department of Education, Training and Youth Affairs Resourcing

This measure provides for a reduction in the cost of outputs for the Department of Education, Training and Youth Affairs. The reduction is to be taken into account in the context of a pricing review scheduled to report in the 2002- 03 Budget context.

Appropriations to the Department of Education, Training and Youth Affairs - 2001- 02

Table 1.1 (also available in RTF format) 

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Budget Measures - Departmental Summary

Table 1.2   (also available in RTF format) lists all Budget Measures from the 2001-02 Budget including forward years, which have resource implications for the Department of Education, Training and Youth Affairs.

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