Uncertainty looms as election approaches

KEY university funding agreements for next year worth more than $6billion won't be signed off until after the September election.

KEY university funding agreements for next year worth more than $6 billion won't be signed off until after the September election, leaving the funding plans of vice-chancellors uncertain just months ahead of the new year.

The Gillard government has had to delay signing the new funding agreements for the period to 2016 because its legislation to cut $2.3bn from student and university funding will not be introduced until the spring session of parliament, after the election.

With polls signalling a Coalition victory, universities have no idea what any final legislation may look like. A Coalition win also would mean universities would have only a few months to renegotiate the funding agreements.

"This just creates another layer of uncertainty for universities over their ability to plan," said Belinda Robinson, chief executive of peak body Universities Australia.

"Who knows what the final legislation will look like?"

Yesterday, David de Carvalho, head of higher education at the Department of Innovation, wrote to all 39 vice-chancellors to warn that the funding agreements could not be signed until the legislative changes had passed parliament.

"We will nevertheless be progressing the draft agreements with a view to finalising them as soon as possible after the election," he wrote.

A spokesman said the email was "a standard departmental follow-up" following the government's statement last week on the timing of legislation.

"This does not mean that funding is uncertain. Funding agreements need to be finalised before the end of 2013," he said.

The commonwealth grant scheme covers all the government money universities receive for enrolled students. While the bulk of the funding is predictable and based on how many undergraduate students are enrolled each year, the number of government-funded postgraduate and sub-degree places that universities can offer is limited by individual funding agreements.

"It adds to the unpredictability facing us on funding," University of NSW vice-chancellor Fred Hilmer said.

Higher education consultant David Phillips of PhillipsKPA said the anxiety for universities was whether a Coalition government would change the proposed cuts.

"It does leave open the possibility that the Coalition, if elected, could do something in addition to or different to (Labor's proposed cuts)," he said.

RMIT University policy adviser Gavin Moodie said the uncertainty should force the opposition to release its higher education policies sooner rather than later.

"There is a real possibility that not only will the government be changed but be changed to a government (that) believes big funding cuts are necessary," he said.

Grattan Institute higher education expert Andrew Norton said barring any late changes, universities would already have a good idea of their funding for next year.

But the legislative delays meant that the next funding agreements might end up being signed at "the last minute", just before next year.

The government is cutting direct university funding by $900 million across three years to help fund its Gonski school reforms.

ADDITIONAL REPORTING: BERNARD LANE