Budget 2009: Education Initiatives

The Government is investing in education to ensure the best possible educational outcomes, despite the deteriorating economic situation.

Funding for new initiatives is going to priority areas that make the most difference to raising educational achievement.

Early Childhood Education

Early Childhood Education initiatives
Initiative Description
Early Childhood Education (ECE) 20 Hours Policy Changes

Operating funding
  • 2009/10  -
  • 2010/11 $11.650m
  • 2011/12 $28.425m
  • 2012/13 $29.624m
Four Year Total $69.699m
Government is investing nearly $70 million of new funding over four years to extend 20 Hours ECE to more children, and to more early childhood education services.

From 1 July 2010 five year olds and those attending playcentres and kohanga reo will be eligible for 20 hours of ECE without being required to pay fees. From 1 July 2011 the six-hour daily limit will be removed.

The enhancements support parent choice and recognise the quality of different types of ECE, by including services and children who were previously unable to access the scheme.

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Schooling

Schooling education initiatives
Initiative Description
Additional Funding for Independent Schools

Operating funding
  • 2009/10 $5.000m
  • 2010/11 $10.000m
  • 2011/12 $10.000m
  • 2012/13 $10.000m
Four Year Total $35.000m
The Government has committed an additional $10 million per annum to make private schools more affordable for more parents.

The additional funding achieves the Government’s manifesto commitment to increase families’ education choices so they have more freedom to select schooling options that best meet their children’s needs.

It is also designed to make private schools more affordable to more parents. By increasing the overall subsidy, the desired outcome is for private schools to reduce their fees resulting in an increase in enrolments.
Additional Funding to Fight Truancy on the Front Line

Operating funding
  • 2009/10 $4.000m
  • 2010/11 $4.000m
  • 2011/12 $4.000m
  • 2012/13 $4.000m
Four Year Total $16.000m
Government is investing an additional $4 million per annum to help schools reduce truancy.

The additional funding fulfils the Government’s manifesto commitment to support schools fight truancy on the front line.

Schools will have the freedom and flexibility to find solutions to addressing cases of truancy that reflect their local contexts.
Additional Funds for the Interim Response Fund for Disruptive Pupils

Operating funding
  • 2009/10 $2.000m
  • 2010/11 $2.000m
  • 2011/12 $2.000m
  • 2012/13 $2.000m
Four Year Total $8.000m
Government is increasing the support given to schools to manage students with challenging and disruptive behaviours.

The Interim Response Fund increases in size by $2 million to $4 million per annum. This additional funding will increase the number of cases the Ministry of Education can accept and also increases the amount available to spend on individual cases.

The Interim Response Fund provides support to schools when faced with a crisis in a student’s behaviour. It is meant to be used as an interim measure to stabilise a crisis and meet a student’s immediate needs while a more comprehensive intervention plan is devised.
Awards for Top-Performing Teachers

Operating funding
  • 2009/10 $0.500m
  • 2010/11 $1.000m
  • 2011/12 $1.000m
  • 2012/13 $1.000m
Four Year Total $3.500m
Government is investing $3.5 million over the next four years to reward top performing teachers.

This investment recognises that high quality teaching is critical to improved student achievement in all areas. Government’s total investment in national study awards will be nearly $108 million over four years.
Caretakers, Cleaners and Groundstaff Collective Agreements

Operating funding
  • 2009/10 $17.512m
  • 2010/11 $17.512m
  • 2011/12 $17.512m
  • 2012/13 $17.512m
Four Year Total $70.048m
This additional funding is to resource the additional cost (over that covered by the percentage increase to schools’ operations grants) of the settlement of the Caretakers and Cleaners (including Canteen Workers’) Collective Agreement and the Secondary and Area School Groundstaff Collective Agreement.

The delivery of funding to schools through the operational funding to resource non-teaching remuneration costs enables schools to respond flexibly to its staffing requirements.
Professional Development to Raise Maori Students’ Achievement

Operating funding
  • 2009/10 $6.360m
  • 2010/11 $4.553m
  • 2011/12 $4.500m
  • 2012/13 $4.500m
Four Year Total $19.913m
This additional investment of nearly $20 million over four years adds 15 new schools in 2009/10 to the Te Kotahitanga professional development programme, which currently involves 33 schools and has been in place since 2004.

It also provides for design and delivery of professional leadership programmes annually for up to 100 principals of secondary schools, based on the evidence from Te Kotahitanga and other evidence of what works for and with Maori learners.

The investment contributes to Government’s commitment to raising Maori achievement.
Funding for The Correspondence School to Enrol Alternative Education Students

Operating funding
  • 2008/09 $0.571m
  • 2009/10 $0.571m
  • 2010/11 $0.571m
  • 2011/12 $0.571m
  • 2012/13 $0.571m
Four Year Total $2.284m
This initiative enables students on Alternative Education programmes to dually enrol with The Correspondence School for Government funded subject by subject tuition.

It removes the previous requirement for Alternative Education providers to fund this tuition from their own funding.

The Correspondence School will receive an extra $2.3 million over the next four years for dually enrolled Alternative Education students.
Funding for the Heat, Light and Water Component of the Operations Grant

Operating funding

  • 2008/09 ($0.824m)
  • 2009/10 $3.198m
  • 2010/11 $2.420m
  • 2011/12 $2.419m
  • 2012/13 $2.416m
Four Year Total $10.453m
Heat, Light and Water is a funding component of the operational grant.

The Ministry of Education recently changed the review process so that schools do not have to apply for a review of their allocation. Allocations are now reviewed automatically using data submitted in the school’s audited financial accounts, therefore reducing compliance and ensuring that the allocation meets the school’s needs. There has been no change to the calculation process. 
Increased Operational Funding for Schools

Operating funding
  • 2009/10 $11.510m
  • 2010/11 $22.744m
  • 2011/12 $22.816m
  • 2012/13 $23.020m
Four Year Total $80.090m (GST inclusive)
The initiative provides for an increase of 1.95% to schools’ operational funding effective from January 2010.
Maintaining Current Level of National Certificate of Educational Achievement Moderation

Operating funding
  • 2009/10 $2.720m
  • 2010/11 $2.720m
  • 2011/12 $2.720m
  • 2012/13 $2.720m
Four Year Total $10.880m
This funding ensures that the New Zealand Qualifications Authority (NZQA) can continue to employ moderators to continue to moderate 10 percent of student work.

NZQA and the Ministry of Education have funded the first year of moderator activity, in 2008/09, through savings. Additionally, NZQA has contributed to funding the additional out-years of moderation through internal savings. Budget 2009 ensures that NZQA can maintain the 10% moderation goal and move forward on implementing subject endorsement for NCEA certificates.
National Certificate of Educational Achievement Standards Review – Assessment Resource Development

Operating funding
  • 2009/10 $2.526m
  • 2010/11 $2.731m
  • 2011/12 $2.431m
  • 2012/13 $0.350m
Four Year Total $8.038m
Budget 2009 provides funding of $8 million over four years for the development of assessment resources and exemplars to support teachers to implement the new standards aligned to the New Zealand Curriculum.

The fine-tuning of the National Certificate of Educational Achievement (NCEA) is to ensure that secondary students gain meaningful qualifications that enable them to confidently move into the workplace and tertiary education.
School Reorganisations

Operating funding
  • 2008/09 $1.000m
  • 2009/10 $1.350m
  • 2010/11 $0.456m
  • 2011/12 ($0.595m)
  • 2012/13 ($1.996m)
Four Year Total ($0.785m)
Government is continuing to provide funding for school reorganisations so that students from schools that close or merge as they transition to their new school are supported. 

The amount of funding provided is formula driven and is allocated on a per student basis.
Support for Students to Meet Literacy and Numeracy Standards

Operating funding
  • 2009/10  -
  • 2010/11 $4.500m
  • 2011/12 $13.500m
  • 2012/13 $18.000m
Four Year Total $36.000m
The Government is investing $36 million over the next four years to help students meet national standards in literacy and numeracy.

This funding, which starts from 2011, will be distributed to primary and intermediate schools to help them support students to meet National Standards in literacy and numeracy.

This funding will help increase the number of students meeting National Standards over time and contributes to the Government’s commitment to raise literacy and numeracy achievement levels.
Voluntary Bonding for Teachers in Hard-to-Staff Areas or Subjects

Operating funding
  • 2009/10  -
  • 2010/11  -
  • 2011/12 $11.135m
  • 2012/13 $5.290m
Four Year Total $16.425m
Government is investing $16.4 million of new money to fund a voluntary bonding scheme for teachers, bringing the total investment over four years to $18.3 million.

The Voluntary Bonding Scheme is a new initiative which aims to attract and retain teachers in decile 1 and isolated schools and in those subject areas where there are teacher shortages.

Eligible teachers will receive an annual taxable amount of $3,500 per year for up to five years. Payments will be made at the end of a teacher’s third, fourth, and fifth year of teaching with first payments to be made to teachers at the end of 2011.
21st Century Building Programme

Operating funding
  • 2008/09 $28.000m
  • 2009/10 $41.391m
  • 2010/11 $48.538m
  • 2011/12 $53.813m
  • 2012/13 $53.984m
Four Year Total $197.726m

Capital funding
  • 2009/10 $172.133m
  • 2010/11 $142.944m
  • 2011/12 $10.548m
  • 2012/13  -
Four Year Total $325.625m

Four Year Total (Capital and Operating)- $523.351
The Government is investing over $523 million of new funding over the next four years to build new schools, modernise existing schools and expand capacity in the school network.

New funding in Budget 2009 provides funding for: the construction of 11 new schools; expansion of administration buildings; halls and libraries in up to 84 schools; an additional 100 classrooms in schools with growing rolls; and replacement of outdated buildings in up to 22 schools.

New funding also includes additional funding for four Upper Hutt schools; the establishment of the first of five planned trades academies; and upgrading of ICT infrastructure in schools to make them broadband ready. Funding is included for construction of early childhood education centres on school sites in South Auckland.

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Special Education

Special Education initiatives
Initiative Description
Extension of the Ongoing and Reviewable Resourcing Schemes (ORRS)

Operating funding
  • 2009/10 $5.000m
  • 2010/11 $10.000m
  • 2011/12 $18.000m
  • 2012/13 $18.000m
Four Year Total $51.000m
The extra funding will enhance the presence, participation and learning of students with special education needs. It will also free up funding for students with more moderate needs.

More students with special education needs will have access to additional resourcing and support.
Maintaining Existing Level of Funding for School High Health Needs Fund

Operating funding
  • 2009/10 $2.671m
  • 2010/11 $2.671m
  • 2011/12 $2.671m
  • 2012/13 $2.671m
Four Year Total $10.684m
Government is investing nearly $11 million of extra money over the next four years to support students attending schools with high health needs. The School High Health Needs Fund will be maintained at $6.1 million per year ensuring an ongoing higher level of funding. Government acknowledges there has been increased demand for support from the fund particularly from those students suffering from diabetes and with severe allergies.

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Tertiary Education

Tertiary Education initiatives
Initiative Description
Increasing Medical Training Places

Operating funding
  • 2009/10 $1.040m
  • 2010/11 $3.089m
  • 2011/12 $5.252m
  • 2012/13 $7.525m
Four Year Total $16.906m
The initiative invests in the first tranche of new medical student places and helps to address the current shortage of doctors in New Zealand.

Lifting the number of medical undergraduates is a positive step in meeting the challenges of a tight international medical labour market, in which many countries face retention issues. This initiative links with the Government’s new voluntary bonding scheme for doctors, which also addresses retention issues.
Performance Based Research Fund

Operating funding
  • 2009/10 $0.027m
  • 2010/11 $4.283m
  • 2011/12 $7.083m
  • 2012/13 $7.083m
Four Year Total $18.476m
The Performance-Based Research Fund (PBRF) supports increased quality of research and research-based teaching and learning, and provides incentives for improving investment in research in the tertiary sector.

Increases to the PBRF announced by the previous government were withdrawn as part of unwinding unfunded commitments (with a total reduction of $18.6 million over four years). The Government has now restored this funding, with the baseline set to grow to $250 million from 2010/11.  This means that there is no material change to the PBRF baseline. 

New Zealand’s investment in research quality and capability has been maintained through continued support for the PBRF.
Summer Employment for Students

Operating funding
  • 2009/10 $4.000m
  • 2010/11  -
  • 2011/12  -
  • 2012/13  -
Four Year Total $4.000m
As part of the Jobs Summit, Government is providing $4 million to assist universities to support summer research scholarships in the summer of 2009/10.

This initiative will help students by giving them income over the 2009/10 summer, as well as research experience. 

This initiative is jointly funded by Government and by universities.

Approximately 1,600 students are expected to be supported under this initiative.
Workplace Literacy

Operating funding
  • 2009/10 $5.500m
  • 2010/11 $5.500m
  • 2011/12  -
  • 2012/13  -
Four Year Total $11.000m
Workplace literacy funding supports customised learning to employees where employers are willing to establish literacy projects. It reaches a range of industries and has high participation from Maori and Pacific Peoples.  Many learners with very low skills also benefit from this funding.

The Government will fund a 50% increase in the number of Workplace Literacy learners for 2009/10 and 2010/11 relative to 2008/09.

Improved literacy and numeracy skills are a core need for employees to participate in the workplace and will be essential to improve workforce productivity.

This initiative is as a result of the Prime Minister’s Summit on Employment held in February 2009.

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International Education


International Education initiatives
Initiative Description
Promote Greater Enrolment of International Students

Operating funding
  • 2009/10 $2.000m
  • 2010/11  -
  • 2011/12  -
  • 2012/13  -
Four Year Total $2.000m
This funding invests in expanding the promotion of New Zealand’s education sector overseas, to aid the recruitment of international students.

International education is estimated to have contributed an economic value-add of $2.1 billion to the New Zealand economy, and directly and indirectly supported 32,400 jobs in New Zealand during 2007/08.

An increase in international students will not affect the ability of New Zealanders to enrol in tertiary education.

This initiative is as a result of the Prime Minister’s Summit on Employment held in February 2009.
Reduction of the International Student Levy from 2010

Operating funding
  • 2009/10 $1.800m
  • 2010/11 $3.600m
  • 2011/12 $3.600m
  • 2012/13 $3.600m
Four Year Total $12.600m
The International Student Levy will be reduced from $900 (GST inclusive) per international fee-paying student to $420 (GST inclusive) from 1 January 2010. The new figure is based on the existing rate of $900 minus the capital depreciation contribution to Crown Revenue of $479, with the result rounded to $420.

Schools will now only pay $420 per international fee-paying student instead of $900. 

This contributes to the initiative from the Prime Minister’s Summit on Employment held on 27 February 2009 of supporting an increase in international student enrolments.  It also ensures that more money stays with schools at the front line.


Content last updated: 15 June 2009