Te Pūkenga releases updated financial forecast


Te Pūkenga releases updated financial forecast

August 29, 2022 | 2 min read

Te Pūkenga Council has today approved an updated financial forecast, following a focused reset and work with the organisation’s head office, Institutes of Technology and Polytechnics (ITPs) and Work Based Learning (WBL).

Te Pūkenga Acting Chief Executive Peter Winder says the organisation is committed to addressing its short-term financial situation and moving towards a sustainable network of tertiary provision. 

 “We are now forecasting a deficit of around $63 million, which is close to the budgeted deficit of $59 million we began the year with. This has been achieved through holding vacancies, prudent cost and expenditure controls right across our network, the reprioritisation of our work in head office, and a larger than budgeted operating surplus from work-based learning.” he says. 

 “The revised forecast is a significant shift considering that revenue from domestic ITP enrolments is down $50.9m on last year.  

“The revised forecast is not without risk. It includes potential revenue from two land sales that we expect to be completed by the end of year, but they may not be.”   

“The revised forecast is a significant step towards the longer-term sustainability of Te Pūkenga. The next step is to complete the financial strategy which brings together the transition and transformation of Te Pūkenga and responds to the Unified Funding System, which comes into effect next year.” 

“The Unified Funding Scheme will significantly increase funding per learner for in-work learning, while reducing funding per learner for campus-based and online options. We need to respond in a way that enables us to respond to this and to future economic cycles. 

“We will continue to work together with our network to carefully manage our financial situation. Our ability to deliver the skills New Zealand needs now and in the future depends upon a model that is fiscally responsible and sustainable,” he says.