Voluntary Student Unionism (VSU) Impact Study
Overview of VSU Impact Study findings
Overall, it is clear that participation in university sporting, recreational, social and cultural activities by students has reduced post-VSU and unless replacement funding is generated the capacity of the sector to continue to provide services will progressively deteriorate – of particular concern are the reductions in the number of students participating in sporting, social and cultural clubs and at inter-university sport. Any further reductions in the level of funds currently being provided by universities or through the Regional University Sport Funding Program will inevitably cause further contraction in the level of student participation and further exacerbate an emerging trend towards inequitable distribution in that participation.
It is also clear the grants available from the VSU Transition Fund do not address the shortfalls in recurrent funding and provide only temporary respite from the pressing capital needs of the sector.
Please note: you can also receive the complete VSU Impact Study by email.
Key Findings of the VSU Impact Study
1. The projected net loss of income from amenities and service fees for 2009 will be approximately $200 million GST-inclusive (further to losses projected or experienced in 2008, 2007 and part of 2006) compared to funding levels from this source which would have existed had VSU not been introduced;
2. The net present value of this reduced funding to the sector over the next 25 years is estimated to be approximately $2.7 billion;
3. It is estimated about $100 million or roughly half of this projected net loss of income from amenities and services fees in 2009 will be made up from
universities, students and other non-government sources as follows:
a. grants or transition funding from universities of about $45 million;
b. increased ‘in kind’ support from universities for student services and amenities (eg building maintenance) of about $25 million;
c. increased direct charges to students and others for use of facilities or access to events of about $27 million;
d. post-VSU the Commonwealth Government’s Regional University Sport Funding Programme (RUSFP) provides $2.5 million annually to assist funding of sporting services staff at 27 universities and this grant (although terminating in 2010) has assisted the sporting sector reduce the impact of job losses in the immediate term.
4. there is a resultant net reduction in recurrent funding for amenities and services of about $100 million in 2009 compared to funding levels which would have existed had VSU not been introduced – which will show up in reduced services compared to what would otherwise have been provided had VSU not been introduced;
5. There has already been a reduction/loss of employment across the student services sector:
a. More than 1,000 jobs have been lost in the student services area, or a
reduction in employment of 30%;
b. Once the Regional University Sport Program terminates in 2010 there
will be further job losses among sporting services staff;
c. As transition funding provided by universities to assist with the adjustment to VSU is progressively withdrawn over the course of the next 3 years there will be further job losses among both sporting services and campus services staff more generally.
6. Examples of services that have suffered substantial reductions include:
a. direct funding for sporting clubs cut by 40% (there has been a 17% reduction in number of students in sporting clubs, down from an estimated 72,000 to 60,000 students between 2005 and 2007 and there has been a 14% reduction in number of students in social and cultural clubs down from an estimated 159,000 to 136,000 students over the same period);
b. direct funding for inter-university sport (not counting ASC funding) cut by 50% (there has been a 41% reduction in number of students representing their university at inter-university sport, down from an estimated 15,500 to 9,200 student trips over the same period);
c. early indications that participation by women in sporting clubs and at inter-university sport has fallen by more than is the case for men. Participation by women at the Australian University Games is now at 40%, down from its historic level of 48%;
d. 20% of sporting organisations and 36% of service providers (i.e. Unions) report suspension of all capital works on services infrastructure causing broad concerns about the longer term viability of sporting, social and cultural facilities infrastructure;
e. 30% of the sector is reporting reductions in spending in real terms on repairs and maintenance of buildings and playing fields causing broad concerns about the longer term viability of sporting, social and cultural facilities infrastructure. Sporting organisations are concerned that the loss of income caused by the VSU legislation will make it impossible for both existing facilities and new facilities supported by the VSU Transition Fund to be adequately maintained in the future. This will have significant deleterious effects not only on participation rates but also on the safety of participants.
7. Post-VSU the sector has made many cuts to services offered and is contemplating further changes to services, as detailed in Appendices H, I and J of this report, with at least:
a. 100 Sporting services nationally that have been shut down or reduced, including areas such as elite athlete support, reductions in campus-based recreational programs and, of greatest concern, a 17% reduction in Club sport participation noted above;
b. 261 Union services nationally that have been shut down or reduced including areas such as funding for Orientation, clubs, childcare and assistance to international students;
c. 50 sporting and 27 Union services nationally under pressure and may be discontinued.
8. The closures or reductions in free or subsidised student amenities and services has for various reasons had an impact on substantially more female students than male students;
9. There are concerns about the VSU Transition Fund and the processes
followed for deciding who received grants. For the federal electorates which
received funding under this programme the campuses in coalition held seats
received in total more than twice the funding per EFTSL compared to the campuses in opposition held seats. Furthermore, on an EFTSL basis 75% of all students nationally received nil benefit from the VSU Transition Fund.
10. There are strongly expressed concerns about the medium to longer term
sustainability of the current arrangements for funding of operations of much
of the sector:
a. about 85% of the sector for 2007 received direct funding or grants from their university to ensure at least a minimum level of sporting, recreational, social, cultural and other services and activities are provided and supported;
b. about 60% of that part of the sector which in 2007 received funding of this type from their university had as at August 2007 confirmed they would be receiving funding in 2008 and subsequent years;
c. of those that clarified they would be receiving funding of this type in 2008 and subsequent years, only about a third of sporting organisations and 40% of Unions had as at August 2007 clarified that the funding would be maintained at current levels in real dollar terms – in many cases the funding is on a sliding scale reducing to nil by the end of 2009;
d. the federal government’s RUSFP (the $2.5 million annually referred to at point 2.e above) is scheduled to terminate at end of 2010;
e. it is quite unclear how successful the sector will be in its efforts to adjust to materially reduced levels of funding being offered by universities and government over coming years, but it is clear that there will need to be further major reductions in significant services and support unless a more substantial and reliable funding basis is secured in the very near future;
f. given the above, there are material levels of pessimism and a loss of morale throughout much of the sector.
11. Structural, governance and other changes to deal with the onset of VSU are occurring across the sector. While these structural changes have assisted the sector in adjusting to initial post-VSU funding realities, it is clear that they will only make up for a fraction of the very large net loss of income to the sector:
a. half of the sporting sector now operate as departments within their host university and more generally universities have as a condition of provision of direct grants for operation of sporting facilities and services, otherwise increased their level of control over what were in many cases previously student controlled sporting associations;
b. half of the sporting sector and 62% of service Unions have undertaken significant internal management re-structures or redundancy programmes which for many has caused loss of corporate knowledge and reduced ability to attract and retain key staff.
12. Prices charged to students for use of services and facilities have in general increased materially since the on-set of VSU:
a. the level of the price increases has in most cases far outstripped CPI and in some cases prices have more than doubled;
b. increases for the price of many services have resulted in material reductions in the numbers of students accessing these services although for certain services subject to material price increases there has been negligible reduction in consumption;
c. for domestic full-time undergraduate students subject to HECS fees and who first enrolled in 2005 or subsequently the level of increase in HECS fees in real terms relative to the 2004 year and even after taking account of the increased repayment threshold has on average more than consumed any economic benefits gained from no longer being required to pay compulsory amenities and services fees;
d. nearly all of the sector report they have assumed a greater emphasis on user pays systems and commercial orientation in the way they operate their organisations and deliver services. This increased commercial focus and related increase in prices for campus services generally, combined with the concurrent HECS fees increases, has placed greater financial pressure on average students who are already working extensive part-time hours to assist with the increasing costs of their higher education. This increased financial pressure is having a negative impact on levels of student participation in the non-academic parts of University life;
13. Over the course of the next several years and if the current unsatisfactory funding arrangements for the student services sector remain as is there will be a progressive further deterioration in the sector’s ability to deliver an appropriate range of sporting, recreational, social and cultural activities to students.
14. Not only is the sector facing a further deterioration in the availability of funding for on-going operations but there is also a growing problem with the notable exception of regional sport, in terms of the availability of capital for development of new services infrastructure and replacement of old infrastructure.
Receive the full ACUMA / AUS VSU Impact Study by email
You may also be eligible to receive the full VSU Impact Study in pdf format; simply complete the request form below and we will review your details and, where appropriate, email the complete study to you in pdf format.
Please note, however, that the VSU Impact Study was produced as an ACUMA member resource and, whilst each request is considered on an individual basis, access is generally restricted to ACUMA member organisations and partner organisations only.