Budget 2009: Education savings

In the current economic environment, the focus is on improving the quality and cost-effectiveness of education expenditure and directing funding to priority areas that make the most difference to raising educational achievement.

As a result some programmes will stop or be scaled back. Savings are also coming from education agencies.

Non-departmental Savings

Early Childhood Education

ECE Professional Development

Savings Rationale
The Government is directing funding to those areas which make the most difference to raising participation levels and quality in all ECE services. Professional development contracts will be more focused on supporting services in areas of higher need, and all providers will be able to tender for future contracts.

Four Year Total Savings - $9.847m
Centres of Innovation (CoI)
The CoI programme started in 2003 to promote innovative teaching and learning in ECE. CoI services were provided with support and funding for three years. The 2008 round for proposals was undersubscribed, and one CoI was awarded. The programme ends 30 June 2009.

Implementation of ECE Exemplars
This programme supports ECE sector personnel to develop effective assessment practices. The increased professionalism and capability now in the sector provides opportunities for quality ECE services to develop their own ways to support teachers’ professional learning.

ECE Advisory Training/Education Fund
The fund is used to strengthen teaching practice.

ECE ICT Framework
The pilot programme started in 2006 to explore the benefits to ECE services of using ICT. Seventy services have been involved – 60 for a three year period and ten for a one-year programme.
Rescinding Previous Government's Proposed Ratio Decisions

Savings Rationale
Currently different adult:child ratios apply for children under two years old, and children two years old and over. The proposal was to shift this age split to the age of two and a half. Given the need to prioritise funding to where it makes the most difference, these changes would have been too expensive, would have imposed financial and compliance burdens on ECE services, and could have reduced participation rates by putting additional pressure on teacher supply, particularly in areas experiencing shortages.

Four Year Total Savings - $275.300m
The Government remains committed to improving the regulated adult: child ratio for under two year old children in ECE centres.

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Schooling

Schooling Professional Development

Savings Rationale
In the current economic environment, the Government is seeking to focus effort and support for schools on the areas of highest priority and to achieve improvements in student learning through more effective use of core resourcing.

For this reason funding for a number of discretionary programmes is being stopped.

Four Year Total Savings - $35.779m
Education for Sustainability
Funding stops from December 2009. However, schools are still able to offer Education for Sustainability teaching and learning through the framework of the NZ Curriculum and the Guidelines for Environmental Education. The Ministry of Education also has a sustainability website for teachers to share best practice, knowledge and resources.

E-learning Fellowships
There will be no funding beyond the 2009 cohort.

Extending High Standards across Schools (EHSAS)
This contestable fund was established in 2006 to provide extra resourcing to high performing schools so they could share their knowledge and practice. Clusters of schools worked collaboratively on four year projects. Funding ceases from December 2009.
School Support Programmes

Savings Rationale
In the current economic environment, the Government is seeking to focus effort and support for schools on the areas of highest priority and to achieve improvements in student learning through more effective use of core resourcing.

For this reason funding for a number of discretionary programmes is being stopped.

Four Year Total Savings - $6.005m
Innovations Pool for Students At Risk
One pool funds schools directly on a decreasing basis over three years and a second pool funds schools through community providers. Contracts stop on 31 December 2009.
Curriculum Support Programmes

Savings Rationale
In the current economic environment, the Government is seeking to focus effort and support for schools on the areas of highest priority and to achieve improvements in student learning through more effective use of core resourcing.

For this reason funding for a number of discretionary programmes is being stopped.

Four Year Total Savings - $11.701m
Gifted and Talented School Support
Professional development delivered through School Support Services contracts is ending. The needs of gifted and talented students will continue to be met through funding for a range of options such as in-class provision and out-of-school learning opportunities, for example, one-day schools. The Ministry of Education is also developing more resources including identification tools, examples of effective teaching strategies and resources targeted to gifted Maori and Pasifika students.

Artists in Schools
Only 45 schools are involved each year – the programme is in its second year. All schools and artists in this current round of funding will be able to see out their agreement.

Children’s and Young People’s Lifestyles
Advisors provide broad support and professional development to schools relating to physical activity and food and nutrition. The latest Education Review Office (ERO) report suggests schools are already doing a good job of promoting healthy nutrition to students. The Government is now focused on getting more children engaged in regular physical activity which is an equally important part of a healthy balanced lifestyle.
Resourcing

Savings Rationale
The Government is committed to supporting student achievement but has a responsibility to do this in a way that is efficient and effective.

Since 2001, approximately 6,024 additional teachers have been provided to schools, at a cost of $350 million per annum. Money that is spent on teacher staffing accounts for approximately 50% of the total spending on schooling.

The Government aims to save about $50 million per year or 1.5% of its total spend of $3.231 billion on teacher staffing.

Four Year Total Savings – about $95.000m
Savings Across the Staffing Budget
Looking to the 2011/12 year and beyond, the Government has asked the Ministry to provide advice on how staffing entitlements could allocate resources more effectively and efficiently, while still ensuring that student achievement is lifted across the system.
Other Programmes

Savings Rationale
Funding is being redirected to those priority areas which make the most difference to raising educational achievement.

Four Year Total Savings- $14.160m
Education Advocacy Service
The Office of the Children’s Commissioner is contracted to provide an education inquiry and complaints service and a freephone legal line information service through the Wellington Law Centre. The contract ends 30 June 2009. The Ministry of Education has the structures and systems to deal with any educational inquiries/complaints.

Careers Advice
Previous Government-approved funding increases to provide career education for secondary schools have been reversed. An additional careers advice component will be developed as part of Youth Guarantee.

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Tertiary

Savings Rationale
Against the background of economic challenges, the focus in tertiary education has been to improve the quality and cost effectiveness of expenditure. Given the fiscal situation Government has had to reverse much of the previous Government’s unfunded promises for tertiary education in Budget 2008, totalling $521 million over four years.

A priority for Budget 2009 has been to give tertiary organisations funding certainty, by maintaining the tertiary places purchased through Investment Plans for 2008-10. The previous government’s decisions in relation to CPI adjustments constituted the single largest item in the unfunded tertiary education package from 2008. The CPI increase will be maintained in 2010 for Student Achievement Component (SAC) and Tertiary Education Organisation Component (TEOC) funding. However, in order to meet unfunded commitments, other funding has had to be reprioritised.

Budget 2009 signals the first moves to reshape the tertiary education system. Streamlining of the Tertiary Education Commission and simplification of the funding system will reduce compliance requirements for tertiary education organisations and prioritise resources to the frontline.

Government plans to release its tertiary education strategy later in 2009.

Savings – Four Year Totals
  • Scholarships - $98.089m
  • Disestablish Small Funds - $37.375m
  • Phase out CPI Adjustments for Tertiary Education Funding - $172.800m
  • Reducing Tertiary Education Capability Funds - $117.093m
  • Reducing Low Priority Tertiary Provision - $87.434m
  • Removing Growth in Literacy, Language and Numeracy - $94.300m
  • Streamlining the Tertiary Education Commission (TEC) - $31.425m.
Scholarships
Bonded Merit, Step Up and Top Achiever Doctoral scholarships cease from June 2009. All existing recipients continue to receive their scholarships for their remaining tenure.

Small Funds
From 2010 the following funds stop:
  • Skill Enhancement
  • Building Research Capacity in Social Sciences
  • Pathfinders
  • Adult and Community Education (ACE) Innovation and Development Fund
  • Community Learning Aotearoa NZ
  • Advance Centre for the Deaf
  • English as a Second Language (ESOL) Assessment Service
  • Bilingual Tutor Grants.
From 2011 the following funds stop:
  • Targeted Education and Training Grants
  • Special Education Special Supplementary Grants
  • Academic Migrant Grant
  • Refugee Study Grants.
CPI adjustments
CPI adjustments are currently applied to funding rates for most tertiary funding that is allocated based on student volumes. The adjustment planned for the Student Achievement Component and Tertiary Education Organisation Component in 2010 will occur but planned adjustments will not occur beyond 2009 for Industry Training, Modern Apprenticeships and Adult and Community Education.

Capability Funding
Four elements are being reduced:
  • University Tripartite Adjustment Fund, (abolished from 2011)
  • Encouraging and Supporting Innovation, (halved from 2010)
  • Industry Training Organisation (ITO) core component, (halved from 2011)
  • Priorities for Focus for Universities (abolished from 2011).
In addition, the Tertiary Education Capital Investment Fund has been abolished. This funding was never released from contingency.

Reducing low priority tertiary provision
The savings reduce numbers of government-funded student places in two areas:
  • Student Achievement Component funding will no longer be available for short courses that entirely or primarily focus on regulatory compliance initiatives or health and safety requirements.
  • Funding for Adult and Community Education courses will be reduced by 50% with savings targeted at hobby and recreational courses while maintaining higher priority provision.
Removing Growth in Literacy, Language and Numeracy
The savings remove most of the future baseline growth beyond 2009/10 in a range of separate funds that are part of the package of literacy, language and numeracy provision. Learner numbers for 2009/10 are still greater than 2008/09. However, there is an increase in workplace literacy funding in 2009/10. There are also reductions in capability funding for Educator Study Grants, Learning Representatives and other capability initiatives. This includes some TEC operating funding.

Streamlining the Tertiary Education Commission (TEC)
The TEC is realigning its organisation by creating a smaller, streamlined organisation that will introduce a simpler funding system with reduced compliance costs for the sector. This realignment has seen a reduction in operating expenses and staffing size.

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International Education

Savings Rationale
In the current economic environment, the Government is seeking to focus effort and support on the areas of highest priority and to achieve efficiencies through more effective use of core resourcing.

Four Year Total Savings - $29.100m
Education Counsellor Network
There are eight counsellors based in Beijing, Washington, Brussels, Kuala Lumpur, New Delhi, Riyadh, Seoul and Santiago. The network will be scaled back. International education relationships will continue and develop through other measures.

Export Education Innovation Programme (EEIP)
The EEIP has been underspent in the past, due to lower than expected numbers of suitable applications from New Zealand providers. Funding will be reduced to a level sufficient to meet the expected number of suitable high quality applications from New Zealand education providers.

Scholarships
Broad-based support is already offered through student achievement funding which is considered more effective than scholarship funding. Scholarships affected include:
  • The NZ International Doctoral Research Scholarships - reduced from 38 to 10 new scholarships each year. Existing students will continue to receive support until their scholarship terms and conditions expire
  • NZ Study Abroad Awards - phased out from the beginning of the 2010 academic year
  • NZ International Undergraduate Fees Scholarships - phased out from the beginning of the 2010 academic year. Existing students will continue to receive support until their scholarship terms and conditions expire.
Domestic Status for German and French Masters Students
Domestic fees exemptions for German and French Masters students will be phased out. Existing exchange students will not be affected, as the necessary regulations will continue to support their enrolment as domestic students.

Note: There is no specific appropriation because this is funded from the current appropriations for domestic students.

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Departmental Savings

Reducing Ministry of Education Policy Advice Expenditure

Savings Rationale
The Ministry has a policy capability programme underway to improve productivity and quality of its policy advice.

Four Year Total Savings of $3.900m
The Ministry of Education will reduce its expenditure on policy advice by 10% while ensuring the consistent provision of high quality advice.
Reducing Ministry of Education’s General Operating Expenditure

Savings Rationale
Along with all Government departments, the Ministry must ensure it operates as efficiently and effectively as possible, with resources directed to the frontline where possible.

Four Year Total Savings of $18.500m
The Ministry of Education will reduce administrative expenditure by 1.5% per annum for three years from 2009/10. In addition, $1.7million of further savings will be found in 2009/10 from changes in operating practice.
Reducing Ministry Activity in Support and Resources for Teachers

Savings Rationale
In line with Government’s focus on fewer support programmes and targeting resources to priority areas such as Numeracy and Literacy, there will be savings in the number and breadth of resources required to support teachers.

Four Year Total Savings of $23.600m
Learning resources will be focused towards Government priorities such as Literacy and Numeracy.
Realising Efficiencies in Information Campaigns

Savings Rationale
The Government is committed to supporting student achievement. In order to best support student achievement, the Government has to prioritise the things that make a difference to students and their families.

Four Year Total Savings of $20.000m
Team Up and Te Mana programmes are being integrated. The focus on community engagement will change from generalised information and mass media campaigns to more targeted engagement with specific groups.


Content last updated: 15 June 2009