Continuing Education and Training Act, 2006 (Act No. 16 of 2006)

Average spending on each full-time equivalent student, as well as the breakdown of spending across the three economic categories referred to in paragraph 86, varies greatly from college to college. The same applies to fees charged, and the way in which private and public funding is combined. Much of the variation is related to the fact that spending is inadequate in some colleges, and inefficient and excessive in some other colleges. Inadequate spending is associated with poor quality training, but even colleges with high spending levels are, in some cases, delivering a service below an acceptable level. The challenge is to bring spending in colleges in line with what it actually costs to deliver a quality service. Changes in spending levels that are too abrupt can result in instability in the sector, and an inability to spend new funds efficiently. It is thus important that the normalisation of spending levels should occur gradually, yet as rapidly as circumstances permit. It is envisaged that the per spending levels implied by the formula funding of programmes will be made clear from the outset, but that the convergence of historical spending patterns with the new spending patterns will take some years. During the transitional period, then, certain colleges may on average spend more or less per full-time equivalent student than what is implied by the new policy. The DHET will develop and manage plans that will align the system with the funding norms of this policy. Moreover, there will be engagement with Treasury by the DHET aimed at ensuring that the MTEF budgets relating to TVET Colleges are harmonised with the readiness of the sector to implement the new funding norms, and to increase student enrolment levels.