September 2008: Briefing to ACE providers

1. September 2008: Briefing to ACE providers

2. Today’s presentation The context The response: Securing Jobs for Your Future – Skills for Victoria Key gains for Adult Community Education The detail – reform package The detail – specifics for Adult Community Education Implementation

3. The context The response: Securing Jobs for Your Future – Skills for Victoria Key gains for Adult Community Education The detail – reform package The detail – specifics for Adult Community Education Implementation

4. The ongoing strength of the Victorian economy depends on the skills of the Victorian workforce Projected need Projected Shortfall Projected supply, based on current model • If training delivery continues at the current level, Victoria is facing a projected shortfall of over 120,000 VET graduates at the highest skill levels – Diploma and Advanced Diploma – by 2015 • 1.64 million adult Victorians have no post-school qualification

5. The objectives are clear • An increase in the number of Victorians undertaking training in the right skill areas, and at the levels needed • A system that engages more effectively and is easier to understand • Responsiveness to changing needs • Creating a culture of lifelongskills development

6. The context The response: Securing Jobs for Your Future – Skills for Victoria Key gains for Adult Community Education The detail – reform package The detail – specifics for Adult Community Education Implementation

7. Securing Jobs for Your Future is a fundamental change to the way the system works The package Total $316m $8m $178m $33m $97m

8. The context The response: Securing Jobs for Your Future – Skills for Victoria Key gains for Adult Community Education The detail – reform package The detail – specifics for Adult Community Education Implementation

9. Benefits for Adult Community Education • Increased funding for training delivery • Student contact hour price will rise to an average of around $7.19 • Greater contestability for delivery of government-subsidised training • Opportunity for ACE organisations to be rewarded for existing efficiency and adaptability • Continued support for ACE organisations to deliver to the most disadvantaged learners: pre-accredited delivery quarantined from contestable market • Recognition of the unique learning environment ACE providers offer to pre-accredited learners • $4 million in additional funds to lift the price paid for pre-accredited training to $7.19 per SCH • $10.8 million over 4 years for new strategies to strengthen ACE providers and extend their reach and delivery to learners

10. The context The response: Securing Jobs for Your Future – Skills for Victoria Key gains for Adult Community Education The detail – reform package The detail – specifics for Adult Community Education Implementation

11. Skills for Life - The Victorian Training Guarantee • For the first time, all eligible Victorians will be guaranteed a place in training * Exemptions for training in specified skill shortage areas and for significant labour market disadvantage

12. Reforms will allow users to access government funding through a greater range of providers • TAFE institutions • ACE providers • Private providers

13. Fairer Fees • Fees will vary depending on the level and qualification and expected benefits • From 1 July 2009, courses will be divided into the following categories • Providers will be able to offer training at fees less than the maximum set amount • Income Contingent Loans will be available for Diplomas and Advanced Diplomas

14. The context The response: Securing Jobs for Your Future – Skills for Victoria Key gains for Adult Community Education The detail – reform package The detail – specifics for Adult Community Education Implementation

15. Increased funding for delivery in ACE • Increased funding for training delivery from July 2009 • Parity with private providers

16. Pre-accredited delivery • Recognition of ACE providers’ strength in delivering to people with different learning styles and abilities • 25% of the current ACFE budget retained and allocated directly to ACE providers for pre-accredited delivery • An additional $4 million invested by Government to lift the student contact hour price to $7.19

17. Stronger Adult Community and Further Education providers $10.8 million to build the capacity of ACFE providers to: • Compete in the new contestable training environment • Deliver to learners in their community Initiatives will be developed in three broad areas: • Building business skills in a contestable environment • Technology for teaching • Responding to hard to reach learners

18. Stronger Adult Community and Further Education providersBuilding business skills for a contestable environment ACE Business Models • Expand the ACE Sustainable Community Businesses and ACE Business Models frameworks and workshops Shared Services Pilots • Establish shared service centres demonstration projects • Focus on assisting smaller providers to be better positioned to compete for funding and to respond to increased demand

19. Stronger Adult Community and Further Education providers Technology for teaching • Continued access to the ACFE Microsoft Agreement • Supports the competitive position of the sector • Up to date teaching and learning resources • Efficiency in administrative and management systems

20. Stronger Adult Community and Further Education providersQuality responses to client needs Three related projects • Responding to hard to reach learners • build the professional capacity of ACE teachers • improve the outcomes for learners • delivery models based on the Circles of Professional Practice and related ACE strategies • Improving the quality of pre-accredited delivery • Expand and strengthen the use of the A-frame and related strategies • Support the professional skills development of ACE practitioners • Responding to specific learner cohorts – CALD/ESL • Provide leadership to build provider capacity to deliver ESL and other services to CALD learners • Focus on areas of new settlement and/or rapid growth and new CALD groups

21. The context The response: Securing Jobs for Your Future – Skills for Victoria Key gains for Adult Community Education The detail – reform package The detail – specifics for Adult Community Education Implementation

22. The average SCH price remains at $6.23. Annual purchasing and performance agreements are made between Regional Councils and providers. The agreements cover delivery of pre-accredited and all levels of accredited training. The tuition contribution levels and Ministerial Direction on Fees and Charges that applied for 2008 ($1.37 per SCH, $55 minimum fee, concessions) apply. Existing programs such as Community Learning Partnerships continue. Stronger Adult Community and Further Education providers: Building ACE capability projects commence Purchasing and performance agreements and purchasing guidelines reflect the new categories of skills Pre-accredited Foundation SkillsCreation (Certificate I & II) SkillsBuilding (Certificate III & IV) SkillsDeepening (Dip & Adv Dip) Implementation : 1 January to 30 June 2009 Continuing arrangements Reforms to be rolled out

23. Annual purchasing and performance agreements between providers and ACFE Regional Councils for delivery in Pre-accredited Foundation SkillsCreation (Certificate I & II) SkillsBuilding (Certificate III & IV) Delivery of Skills Deepening (Diploma & Advanced Diploma) courses subject to competitive delivery Skills for Life – Victorian Training Guarantee commences for Skills Deepening (Diploma & Advanced Diploma) New eligibility criteria for students at Diploma & Advanced Diploma level in place Income Contingent Loans available for students at this level New Government funding rates in place New student fee structure introduced Implementation : July 2009 onwards Continuing arrangements Reforms to be rolled out

24. Implementation : 2010 • Arrangements implemented in 2009 are reviewed • Stronger Adult Community and Further Education providers: Building ACE capability projects continue • Purchasing and performance agreements with ACFE Regional Councils are in place for delivery of • Pre-accredited • Foundation • SkillsCreation (Certificate I & II) • SkillsBuilding (Certificate III & IV) • Competitive delivery arrangements for the delivery of Skills Deepening (Diploma & Advanced Diploma) courses continue

25. Annual purchasing and performance agreements with ACFE Regional Councils in place for pre-accredited delivery Delivery of Foundation Skills, Skills Creation (Cert I & II), Skills Building (Cert III & IV) and Skills Deepening (Diploma & Advanced Diploma) courses subject to competitive delivery Skills for Life – Victorian Training Guarantee in place for all students Eligibility criteria applied for all students New fees and charges arrangements maintained Implementation : 2011/12 onwards Continuing arrangements Reforms to be rolled out

26. Other activity to be aware of • Skills Victoria Student Fees and Charges guidelines consultations • To commence September 2008 • Development of new Ministerial Statement for ACE • Planned release early 2009

27. Highlights for ACE • Implementation of a new system in stages from 2009 for full implementation in 2011 • Demand driven, focussed on individual and business needs • Four new skills categories • Greater contestability for delivery of government-subsidised training • Opportunity for ACE organisations to be rewarded for existing efficiency and adapability • Increased funding for ACFE • The student contact hour will rise and there will be parity between ACE and private providers) • Continued support for ACE organisations to deliver to the most disadvantaged learners: pre-accredited delivery quarantined from contestable market • $4 million in additional funds to lift the price paid by the ACFE Board for pre-accredited delivery to $7.19 per SCH • $10.8 million over 4 years for new strategies to strengthen the capability of ACE

28. Questions? Next ACE provider briefing: October 2008