Circular 2008/11

Date: 1 September 2008
Circular Number: 2008/11
Category: Resourcing

Resourcing for 2009

This circular is about: Operational Funding and Staffing for 2009.

The action required is: Use the information contained in this circular for planning for 2009.

It is intended for: Chairpersons of boards of trustees and principals in all state and state integrated schools.

For further information:
www.minedu.govt.nz/resourcinghandbook for the Funding, Staffing and Allowances Handbook for state and state integrated schools.
www.minedu.govt.nz/theMinistry/Budget.aspx for Budget announcements related to operational funding for 2009.
www.minedu.govt.nz/SchoolCirculars for copies of school circulars.

Contact Centre
Resourcing Division
Ministry of Education
PO Box 1666
Phone 04-463 8383
Fax: 04-463 8374
Email: resourcing@minedu.govt.nz [NO SPAM]

Introduction

This circular provides boards with information about Operational Funding and Staffing for 2009. Please be advised that the October 2008 Operational Funding Entitlement and Instalment notices will be issued separately at a date closer to the actual instalment payment.

Enclosed with this circular is: 

• a provisional Operational Funding Entitlement notice for 2009 
• a provisional Staffing Entitlement notice for 2009

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2009 Operational Funding

Rate Changes

Most Operational Funding components have been increased by 3.1% for 2009. These include: 

• base funding 
• per-pupil funding (see ‘Changes to Per-pupil Funding’ for more detail) 
• decile-related funding.

An increase of 3.1% has also been applied to the funding pools used to resource the components: 

• Heat, Light and Water (recalculated automatically based on the schools audited accounts) 
• board of trustees election expenses 
• setting-up grants for new schools and classrooms built because of roll growth.

There will be an increase of 3.1% to the funding available for the following components, which do not go to all schools: 

• Targeted Funding for Isolation (TFI) 
• Secondary Tertiary Alignment Resource (STAR) 
• administration and travel grants for resource teachers 
• administration grant for out of hours music and art classes.

Changes to Per-pupil Funding

Per-pupil funding rates have been increased by 3.1%. However, there have been further changes made to the calculation of per-pupil funding rates for 2009.

These are: 

• ICT funding removed ($16.48 per student) 
• NCEA funding added to Year 11-13 per-pupil rate ($5.81 per student). 

ICT Funding

As of 2009 ICT funding will be a separate funding component made up of a base and per-pupil rate.

The ICT component is made up of new and existing funding.

The new funding for ICT equates to 1.9% of Operational Funding, approximately $18 million.

The existing funding has been calculated by taking the ICT component that was subsumed into the per-pupil grant in 2002. This was inflation adjusted to give a 2009 equivalent of $16.48 per student.

Per-pupil Funding Rates

Heat, Light and Water Recalculation Policy

To reduce unnecessary compliance, and to ensure each school’s Heat, Light, and Water allocation meets reasonable needs, schools Heat, Light, and Water allocations can be automatically adjusted using the data previously provided to the ministry by the board in its annual financial returns. The vast majority of schools (over 95%) have already agreed to this automated process. In anticipation of the remaining 5% agreeing, this automatic recalculation has been applied to all schools. If a board does not agree to this process being applied, please contact Resourcing Division to discuss.

Please note that increases to the allocation are effective from the beginning of 2008 and will be shown in your school’s October Entitlement Notices. This increased Heat, Light and Water allocation will also be applied as your school’s allocation for 2009.

Schools whose allocation has decreased will maintain their current allocation for 2008, the decrease applying from the beginning of 2009.

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2009 Staffing

1:15 Staffing

The 2008 Budget provided funding for approximately 760 additional full-time teacher equivalents from 2009 to support the transition of new entrants into school. The additional staffing will be allocated to schools by reducing the Year 1 curriculum staffing teacher:student ratio from 1:18 to 1:15. The additional teacher resource is being provided to support new entrants to settle well into school and gain good early learning foundations, particularly in literacy and numeracy.

Enclosed with this Circular is your 2009 Provisional Staffing notice. The staffing calculations use the 1:15 staffing ratio. Primary and area schools already receiving a Maximum Average Class Size (MACS) adjustment may not receive any staffing increase emanating from the changes to this ratio, the increase being wholly or partially absorbed by the MACS.

The 1:15 staffing ratio change could increase the number of teaching spaces your school is entitled to if your school has a large year one roll. If your school does not already have enough teaching spaces to accommodate the increased entitlement, then funding will be provided to create a new space or modify existing space. The property entitlement calculations will be based on the same roll used to calculate staffing at your school for 2009. This will be reviewed in term two 2009.

A letter detailing the impact on property entitlement due to the ratio change will be issued with the October Entitlement/Instalment Funding notices late in September.

ENROL

Primary and Intermediate

From 2009 March roll counts will be extracted from ENROL. The ‘Current Year Level’ will be used to count students for resourcing purposes. This replaces the ‘Funding Year Level’.

Please note that the ministry continues to expand its use of ENROL data where opportunities to reduce compliance arise. Boards are advised to ensure ENROL data remains current at all times.

All other schools

There will be no change to the way in which roll data is collected in 2009.

New Entrant Prediction (Primary and Area Schools Only)

In the 1 July roll return boards were asked to predict the number of new entrants likely to enrol between 1st March and 10th October 2009. This change has been made to ensure the most accurate data is available to the ministry for input into the estimate of the 10th October roll.

Boards will be asked in March for their revised estimate of the number of new entrants likely, using the latest information, to enrol between 1st March and 10th October 2009.

Requests for Review of Predicted Resourcing Roll

Boards may apply in writing for a review of their predicted resourcing roll if they consider there are other factors impacting on the ministry's prediction that may not have been taken into account. Boards will be required to demonstrate that the ministry's estimate of the predicted resourcing roll is at least 5% at variance with that of the board. Clear evidence supporting this variance will need to be provided before the ministry will consider approving a change. A list of projected enrolments alone will not be sufficient.

Review requests must use the 2009 Provisional Staffing Roll Review Form, available on www.minedu.govt.nz/goto/resourcingforms/ and be sent to Resourcing Division by 19 September 2008.

The following table details how to apply for a review of your 2009 predicted resourcing roll:

Staffing Reduction

Responsibility for reducing staffing lies with school boards. Assistance, if required, should be sought from the New Zealand School Trustees Association (NZSTA). The ministry is not involved in the staffing reduction process, except to give prior approval to access the surplus staffing provisions (supernumerary allowance, retraining course approval, severance payments and long service payments).

Please note that prior consultation with the Manager, Determination & Delivery, Resourcing Division, should be had before any discussion is held with a teacher identified as surplus around them accessing the severance or long service payment provisions of the Primary Teachers' Collective Agreement.

The ministry will fund surplus staffing costs only under certain conditions, and where procedures have been actioned within the timelines and guidelines notified by the Resourcing Division. Please refer to the Funding, Staffing and Allowances Handbook (www.minedu.govt.nz/goto/resourcinghandbook) for full details. If you require further clarification after reading the information in the Handbook, please contact the Resourcing Division.

The following table details time frames for surplus staffing procedures.

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International Student Levy

Payment of Levy

The International Student Levy (ISL) applies to both state and state integrated schools that enrol international fee-paying students. The ISL is used to fund the capital depreciation and maintenance in respect of international students, ERO review of schools in terms of meeting the requirements of the Code of Practice and English language support for international students as well as English for Speakers of Other Languages (ESOL) support and advisory services.

Although state and state integrated schools only pay the ISL levy, these schools also pay the Export Education Levy (EEL). This will be deducted from the ISL.

The ISL applies to each international fee-paying student enrolled regardless of the number of weeks enrolled. The levy is based on the number of weeks enrolled.

All international fee-paying students must be enrolled in the school and also entered on the ENROL database. The only exception is for “Group” students who are in New Zealand on a Group Visa for culture or sporting purposes and receive no curriculum teaching.

From 2009 the ENROL database will be used to calculate the international student levy. Schools will also be required to enter a “Weekly Tuition Fee” for each and every one of their international fee-paying students. This is to enable the Ministry of Education to calculate the Export Education Levy component, which is based on tuition fees.

ISL Weekly Rates for 2009

Process for the Collection of the Levy

From 2009 the ISL will be collected on a Trimester basis. This means that schools will have the deduction of the levy spread over three periods.

Trimester 1 will sum the tuition weeks international fee-paying students have consumed in the period 29 January to 30 April. The ISL amount will be deducted from schools July Operational Grant.

Trimester 2 will sum the tuition weeks international fee-paying students have consumed in the period 1 May to 31 July. The ISL amount will be deducted from schools October Operational Grant.

Trimester 3 will sum the tuition weeks international fee-paying students have consumed in the period 1 August to the end of the school year. The ISL amount will be deducted from schools Operational Grant in either January or April the following year.

Please refer any queries to:
Administrator International Levies,
Phone 04 463 8073 
Email foreign.levy@minedu.govt.nz.

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Issued by:

Paul Burke
Senior Manager
Resourcing Division
Te Wāhanga Whakarato Rawa

National Office
45 – 47 Pipitea Street, Thorndon
P O Box 1666, Wellington, New Zealand
Phone: 0-4-463 8383
Fax: 0-4-463 8374
Email: resourcing@minedu.govt.nz