FC 24/21

FINANCE COMMITTEE PAPER

TO
  Members of the Finance Commit ee
FROM
  Dr Logan Bannister – Deputy Vice-Chancellor (Students)
Stephanie Hunter – Associate Director Student Operations, on
AUTHOR
  behalf of the Advisory Commit ee on the Student Services Fee
(ACSSF)
DATE
  14 August 2024
SUBJECT
  2025 Student Services Fee paper
DOCUMENT #
  FC 24/21

Executive Summary
The attached paper contains the recommendations to update the 2025 Student
Services Fees, together with the supporting rationale. The recommendations cover:
-  Student Services Fee and Student Hardship Fee for all students
The recommended fee increases wil  be included in the 2025 Budget.
Recommendations:
That Finance Committee recommend to Council that it approve:
1.  an 8% increase to the Student Service Fee price per point for 2025 (refer
page 8);

2.  the Student Hardship Fee for 2025 to increase from $30 to $32

That Finance Committee recommend to Council that it note:

3.  Concerns raised and risks highlighted by ACSSF with regards to the
impact on the capability for SSF services to continue to be delivered due
to pressure of increased occupancy costs year on year.

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2025 Student Services Fee
Recommendation Paper

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1.0 Student Services Fee Background
The Student Services Fee  (SSF) and a separate Student Hardship  Fee,  which contributes to the
Hardship Fund, are paid by all enrolled students. These are compulsory fees charged in addition to
student tuition fees and help fund non-academic student services (refer to Appendix 1) that contribute
to  retention  and a positive student experience.  The  Education (Pastoral Care of Tertiary and
International Learners) Code of Practice 2021 requires the provision of student services that support
the wel being and safety of our student community. Many of these support services are either
completely or partly funded through the SSF.
Legislative Environment
Student services fees are regulated through funding determinations and are subject to the funding
conditions administered by the Tertiary Education Commission (TEC). These conditions outline the
rules that TEOs must fol ow when receiving TEC funding. The SSF funding conditions  ensure that
providers are transparent when setting the fees and accountable to students for their use. They
include:
(1)
Al  money col ected through the SSF must only be used to fund non-academic student services
that fit within the specified Ministerial categories  listed in Table 1.  Appendix 1 lists the Victoria
University Student Services that sit under each category.
Table 1:  Ministerial Categories for Fee funded services
Advocating on behalf of individual students and groups of students and providing
Advocacy and legal advice
independent support to resolve problems. This includes advocacy and legal advice
relating to accommodation.
Careers information, advice and guidance
Supporting students’ transition into post-study employment.
Counsel ing services and pastoral care
Providing non-academic counselling and pastoral care, such as chaplains.
Providing information about employment opportunities for students while they are
Employment information
studying.
Providing hardship assistance and advice to students on financial issues. Includes the
Financial support and advice
Hardship Fund.
Health services
Providing health care and related welfare services.
Supporting the production and dissemination of information by students to students,
Media
including newspapers, radio, television and internet-based media.
Childcare services
Providing affordable childcare services while parents are studying.
Supporting student clubs and societies, including through the provision of
Clubs and societies
administrative support and facilities for clubs and societies.

SSF income significantly contributes to the operational budgets of some services, e.g. Mauri Ora–
Health and Counselling, Te Amaru–Disability Services, Te Ratonga Rapu Mahi–Careers and
Employment, and University Recreation, and contributes a smal er proportion to the budgets of other
services, e.g. University Kids, Āwhina, and Pasifika Student Success. The University also has a funding
arrangement with VUWSA through a provision  of Services Contract for additional services (this
includes student media, class reps and an independent advocacy service) that are paid for by the SSF
through this third-party contract. SSF allocation also contributes funding to other student associations
and representative groups, such as Ngāi Tauira and Student Assembly.
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Most of the services that receive a contribution to income from the SSF are free to students, and some
are available at heavily subsidised rates. Alternative external revenue, e.g. government grants and Te
Whatu Ora health sector contracts, also contribute to the delivery of some of these services.
(2)
The University is required to consult with students in setting these compulsory fees. At our
University, we  work in partnership through an Advisory Committee on the Student Services Fee
(ACSSF), an oversight advisory group made up of staff and student representatives which typically
meets monthly. The student representatives are from VUWSA and Ngāi Tauira who, via the Student
Assembly, consult with the student body on any changes to the SSF.  The Student Assembly is a forum
led by students for students  and  includes a diverse range of student communities. It  provides  a
platform for students to receive the relevant SSF information and have an opportunity to shape the
rate of the SSF and how the money raised is spent.
(3)
All reporting and financial analysis of the SSF reflects the categories in Table 1, noting that the
University also allocates an appropriate portion of the overhead costs that support delivery of the
services. Any surplus or shortfall at the end of each year is ‘ring fenced’ and carried forward to the
next year.  In accordance with a recommendation approved by Te Hiwa at their 16 July 2024 meeting,
the carried forward deficit at the end of FY24 has been re-set to nil (from an estimated carried forward
deficit of $3.2m).
2.0 Student Services Fee Overview
2.1 Charging structure for students
The  SSF is charged per point, with a lower rate for students studying by distance (outside of the
Wellington region). The charge is capped at 150 points per academic year. Table 3 shows a comparison
of the other New Zealand University 2024 charges. Table 4 compares the percentage price increase
across universities during 2023 and 2024.

Table 3:  Comparison of other New Zealand Universities 2024 compulsory non-tuition fees for
students studying on campus
Note the figures below for VUW do not include the $30 (GST inclusive) students pay as a
contribution to the University’s Hardship Fund, in addition to the SSF.
Based on 120 points, this equates to an additional 0.25cents per point.

Al  $ figures are GST inclusive. (2025 figures for other Universities are not yet publicly available)

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Table 4: Comparison of other New Zealand Universities 2024 percentage price increase

Since 2020, SSF price increases at Victoria University of Wellington have ranged from 1.4% to 7%
(green bars in Table 5 below). Occasionally, this met CPI (blue bars below). In other years, it did not.
In 2022 and 2023, there were significant gaps (5% and 4% respectively) between the SSF price increase
and inflation.
Table 5: Victoria University SSF price increase 2020 – 2024 compared to inflation

In summary, the SSF annual price increases have not kept up with inflation in costs - in total, since
2020, the SSF price increases have been 5.4% lower than inflation.

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2.2 Student Voice – 2025 Student Services Fee consultation
The Advisory Committee (ACSSF) met in May and June to discuss options for student consultation and
agree an approach for the recommendation for the 2025 Student Service Fee. The VUWSA and Ngāi
Tauira ACSSF student committee members advised their preference was to consult with the Student
Assembly rather than general student population through a ful  survey.  Results from the 2023 Student
Voice-Have Your Say were also used to inform the recommendations. This survey ran in Trimester 2
between 31 July 2023 – 20 August 2023 and included questions about awareness, use, and satisfaction
of SSF funded services.  It had a 23.7% response rate.

On  30 May  2024,  ACSSF considered and approved an Executive members  remuneration  proposal
presented by the Ngāi Tauira student committee members. Al  Committee members were supportive
of the proposal to increase the Ngāi Tauira student service fee funding by $117,000 (to align with
VUWSA Executive base funding) from  2025 to fund the ongoing  salaried roles as outlined in the
proposal. They agreed that the recommendation(s) for the 2025 SSF price change needed to include
this increased payment to Ngāi Tauira. This funding through the SSF would replace the ‘scholarship’
paid annually from the Office of the Vice-Chancellor and DVC, Māori during recent years.

On 20 June, Finance presented ACSSF with the options below for 4%, 6%, 8.08%, 8.88% and 11%
increase, outlining that 8.08% will be the breakeven point (8.88% with the Ngāi Tauira increase to
funding is included).  For clarity, the table has subsequently been updated with an 8% increase option
and the re-set of the carried forward deficit at the end of FY24 to $0, which was approved at the 16
July 2024 Te Hiwa meeting.

Table 6: Forecast Student Service Fee income and expenses for 2025 and price per point

The key assumptions in the scenarios above are:
•  2.7% increase in people costs.
•  4.9% increase in Occupancy (driven by an estimated 15% insurance cost increase and 3%
increase in remaining areas for occupancy charge-out rate).
•  3% increase in commercial revenue; government grants and other income.
•  Nil included for additional services (except $117k for Ngāi Tauira).
•  16,250 –a 2.5% increase from 2024 full year EFTS of 15,848 (per T1 census)
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•  3.6% of total points estimated to be capped at 150 points.
•  96.1% of total points estimated to be studying in Wellington.

Discussion centred around the challenges with a price increase for students without a direct
relationship to increase in services offered or investment in upgrading facilities directly funded by the
SSF. The preference was for as low a percentage as possible, ensuring, we have a sustainable model
for the future. Staff and student committee member agreement was reached that the SSF needs to
be increased at a level to achieve as best possible a breakeven position for 2025 to sustain the current
level of services provided, and give an opportunity for reinvestment as EFTS grow.

ACSSF members agreed that a huge risk remains with regards the pressure the fixed occupancy costs
put  on the SSF.  Increased occupancy costs year-on-year will impact the capability for services to
continue to deliver.
2.3 Price increase for 2025
All members of ACSSF who attended the June meeting, voted and agreed to the fol owing
recommendation for the 2025 SSF:
-  An 8% increase to the SSF ($9.94 per point; $4.97 per point for students studying outside of the
Wellington region);
-  This includes additional ongoing funding of $117,000 for salaried Ngāi Tauira Executive roles; and
-  A reduction of the SSF al ocation for occupancy charges.
Te Hiwa considered and endorsed these recommendations at their meeting on Tuesday 6 August
2024.
2.4 Student Hardship Fee
The Student Hardship Fee is also paid by al  students. This Fee is charged separately to the SSF and
contributes to the ‘Hardship Fund’ that was established in 1991. Al  monies col ected  is directly
distributed to students experiencing financial difficulty e.g., unforeseen flatting problems, unexpected
job loss who would otherwise be unable to continue their studies.
Given the current cost of living pressures, all members attending the Committee meeting agreed to
increase the Hardship Fee for 2025 from $30 per student to $32.

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3.0 Recommendations:

That Finance Committee recommend to Council that it approve:
1.  an 8% increase to the Student Service Fee price per point for 2025 (refer page
8);

2.  the Student Hardship Fee for 2025 to increase from $30 to $32.

That Finance Committee recommend to Council that it note:

3.  concerns raised and risks highlighted by ACSSF with regards to the impact on
the capability for SSF services to continue to be delivered due to pressure of
increased occupancy costs year on year.

Al  staff and student members of ACSSF are supportive of the recommendations and Te Hiwa have
endorsed this recommendation.

Al  approved fees wil  be published in the 2025 Fees Schedule. 

Table 7: SSF per-point price 8% increase
Student type
2025 FEE  PER-POINT
FEE FOR 120
(GST INCLUSIVE)
POINTS
Studying from within the Wellington region (on-
$9.94 (cap 150 points)
$1,192.80
campus or online)
Studying ful y online, residing in NZ but outside the
$4.97 (cap 150 points)  $596.40
Wel ington region or residing outside NZ

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Appendix 1 – Services supported by the SSF
Advocacy and legal advice
  Our Tauria—Student Interest and Conflict Resolution team offers support for students when making
complaints, appealing academic decisions, or resolving pastoral or accommodation issues.
  The Fee pays VUWSA to deliver an independent advocacy service to help students with academic or
personal problems. VUWSA also offers training and support for class representatives and Faculty
delegates.
  The Fee  also supports and funds student representation and activities by Ngāi  Tauira, Postgraduate
Students’ Association (PGSA) and Pasifika Students’ Council.
Health services, counsel ing, and pastoral care
  Our Mauri Ora—Student Health and Counsel ing service provides primary medical care, health
education, and counsel ing services for students.
  Our Manawa Ora—Student Wel being team promotes wel being, and provides guidance on staying
connected, resources, and workshops. The Fee  also funds a Rainbow and Inclusion Adviser and a
Refugee-background Student Adviser.
  Our Te Amaru—Disability Services assists students with temporary and ongoing impairments, so that
they can fully engage and achieve in their studies.
  Our Āwhina—Māori student support team offers specialised support and connections for our Māori
tauira.
  Our Pasifika Student Success team provides our Pasifika students with tools and support services.
  The Fee also funds welfare services such as VUWSA’s community pantry delivery.
Career and employment guidance
  Te Ratonga Rapu Mahi—Careers and Employment connects students with employers, provides careers
advice, runs career expos, and helps with CVs and job applications.
  The Careers and Employment team also delivers two programmes. The Wel ington Plus
Programme connects students with volunteering and leadership opportunities. The Alumni as Mentors
programme connects final year students with alumni who can help them transition into employment.
Financial support and advice
  Our Student Finance team helps students with budgeting, StudyLink issues, and provides financial
mentoring and advice.
  The Student Finance team also administers the Hardship Fund—an emergency fund to help students
facing financial difficulties.
Clubs, societies, sports, recreation, fitness, wel being and cultural activities
  The Fee helps support more than 130 political, cultural, sports, faith-based, and academic clubs and
societies on campus. Clubs use facilities including the Hub, the Recreation Centre activity spaces, and
meeting rooms across three University campuses.
  University Recreation offers an extensive range of fitness services, group exercise classes, and
wel being initiatives. Students can use fitness spaces and facilities at Kelburn and Pipitea—these
facilities can either be used for free or hired by members. Our Kelburn facility also includes a newly
renovated functional training room and private amenities suitable for gender diverse people.
  Sports at University Recreation vary from casual to competitive. We offer on-campus social sports
leagues, casual and 'just play' sessions, participation in tertiary sports tournaments (through University
and Tertiary Sport New Zealand), and scholarships that support athletes.
  The Fee contributes to the costs of delivering O-week events run by VUWSA
Student media
  The Fee funds Salient, a weekly magazine produced entirely by students. It is published and circulated
by VUWSA.
Childcare services
  The University Kids Wel ington early childhood education service provides up to 77 full-time equivalent
places for the children of our students.

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Document Outline

Report to Finance Committee paper.pdf