Early childhood education initiatives and savings

Details of the main early childhood education initiatives and savings announced in Budget 2010.

Early childhood education initiatives

Initiative	Description
Early Childhood Education Cost Adjustment Operating funding 2010/11 $10.800m 2011/12 $11.612m 2012/13 $12.023m 2013/14 $12.286m Four Year Total $46.721m	This 2.4% increase is for the non-staffing component of the Early Childhood Education (ECE) subsidy and 20 Hours ECE funding rates. It recognises increasing operational costs faced by the ECE sector, and reduces the need for fee increases to parents. The 2.4% is Treasury’s predicted forecast inflation figure to the end of the financial year 2010/11. The new funding rates are effective from 1 July 2010.
Package of Targeted Early Childhood Education Participation Initiatives Operating funding 2010/11 $10.640m 2011/12 $21.940m 2012/13 $28.840m 2013/14 $30.340m Four Year Total $91.760m	Many Māori and Pasifika children, and children from lower socio-economic areas, are missing out on an early childhood education. It is expected that up to 3,500 children over four years will access quality ECE as a result of this package, which will involve: intensive community participation projects improving the supply of responsive high-quality ECE redesigning existing initiatives.
Recognising Teachers with Primary and Overseas Qualifications in ECE Operating funding 2010/11 $6.281m 2011/12 $8.678m 2012/13 $9.502m 2013/14 $10.434m Four Year Total $34.895m	From 1 November 2010, registered primary teachers will be recognised for funding purposes in ECE services. Funding of $19.5 million over four years will cover the additional cost of some services becoming eligible for higher funding bands due to this change. Further information will be available prior to the November 2010 funding round. The New Zealand Qualifications Authority (NZQA) is expanding the recognition of some overseas ECE qualifications. Funding of $15.4 million over four years will support plans to recognise overseas ECE teachers with comparable qualifications to NZ ECE teachers. Further information is available from NZQA (ECE.QRS@nzqa.govt.nz).These changes will help ease teacher supply pressures, and acknowledge the valuable range of skills these teachers bring to ECE.
Modifying Funding Systems to Implement Early Childhood Education Savings Operating funding 2010/11 $1.344m 2011/12 $0.999m 2012/13 $0.829m 2013/14 $0.829m Four Year Total $4.001m Capital funding 2010/11 $3.910m 2011/12 $ - 2012/13 $ - 2013/14 $ - Four Year Total $3.910m Four Year Total (Capital and Operating) $7.911m	This initiative includes capital and associated operating costs to modify Ministry of Education IT systems to allow for changed Early Childhood Education funding rules. These changes are required to support the alignment of ECE funding with the 80% teacher registration target.

back to top

Early childhood education savings

Initiative	Description
Align Funding with the 80% Teacher Registration Target Savings Rationale In 2009 Government set an Early Childhood Education (ECE) teacher registration target of 80% in 2012, removing the previous 100% target. This change is expected to ease ECE teacher supply pressures considerably. Current ECE funding rates, however, still provide an incentive for services to employ up to 100% registered teachers. This proposal aligns funding incentives for teacher registration with the Government’s target of 80% registration, and also with decisions to target teacher supply initiatives. Four Year Total Savings – $295.312m	New 80%+ funding rates will come into effect on 1 February 2011. These rates will replace the current 80%-99% and 100% funding rates. Changes will not affect sessional kindergartens, playcentres, home-based services, and most kōhanga reo. No ECE service funded at a rate below 80%-99% in July 2010 will be able to move onto the 80-99% or 100% funding rates from November 2010. Despite this level of savings, the overall level of funding for ECE is forecast to continue rising in coming years.
Better Targeting of Teacher Supply Initiatives Savings Rationale Currently, 64% of the ECE teaching workforce is registered and the sector is on track to meet the 80% target at a national level by 2012. There is less need for financial incentives from Government to support services already reaching these targets. Government support for workforce upskilling needs to be more targeted to services enrolling Māori and Pasifika children and children from lower socio-economic status backgrounds, and those that have trouble attracting qualified and registered ECE teachers. This will support high standards and teacher registration targets. Four Year Total Savings – $42.736m	The following initiatives are being refocused to support services, students and teachers with the greatest need: Incentive grants have been replaced by the ECE Service Teacher Education Grant (ECESTEG). In 2010, 1,000 grants will be available to provide additional targeted support to help services meet the 80% teacher registration target. The support grant for provisionally registered teachers is being reviewed to provide more targeted support for provisionally registered teachers. Study grants and ECE TeachNZ scholarships remain unchanged for 2010, but will be reviewed before Budget 2011. The following initiatives will also cease because they are no longer effectively contributing to Government objectives: The teacher relief pool International and national relocation grants The return to teaching allowance Government-funded recognition of prior learning
Do Not Proceed with Removing the 6 Hour Daily Limit Savings Rationale This initiative reprioritises future funding increases that do not directly support Government’s participation priority. Although removing the six hour daily limit would have benefited families already using ECE, it would have provided little assistance for children not currently benefiting from ECE. Many of these children are Māori and Pasifika children and children from low socio-economic backgrounds. Four Year Total Savings – $49.000m	Additional funding was put aside in Budget 2009 to remove the six hour daily limit on 20 Hours ECE from July 2011. This was at a cost of around $16 million per annum. The decision has been made not to proceed with removing the six hour daily limit for the time being. This savings initiative reprioritises the planned funding for other expenditure focussed on the Government’s key priority of increasing opportunities for children to participate in quality early childhood education (ECE). Retaining the six hour daily limit means the 20 Hours ECE policy will continue without change.

Initiative

Description

Align Funding with the 80% Teacher Registration Target

Savings Rationale

In 2009 Government set an Early Childhood Education (ECE) teacher registration target of 80% in 2012, removing the previous 100% target. This change is expected to ease ECE teacher supply pressures considerably.

Current ECE funding rates, however, still provide an incentive for services to employ up to 100% registered teachers.

This proposal aligns funding incentives for teacher registration with the Government’s target of 80% registration, and also with decisions to target teacher supply initiatives.

Four Year Total Savings – $295.312m

New 80%+ funding rates will come into effect on 1 February 2011. These rates will replace the current 80%-99% and 100% funding rates.

Changes will not affect sessional kindergartens, playcentres, home-based services, and most kōhanga reo.

No ECE service funded at a rate below 80%-99% in July 2010 will be able to move onto the 80-99% or 100% funding rates from November 2010.

Despite this level of savings, the overall level of funding for ECE is forecast to continue rising in coming years.

Better Targeting of Teacher Supply Initiatives

Savings Rationale

Currently, 64% of the ECE teaching workforce is registered and the sector is on track to meet the 80% target at a national level by 2012. There is less need for financial incentives from Government to support services already reaching these targets.

Government support for workforce upskilling needs to be more targeted to services enrolling Māori and Pasifika children and children from lower socio-economic status backgrounds, and those that have trouble attracting qualified and registered ECE teachers. This will support high standards and teacher registration targets.

Four Year Total Savings – $42.736m

The following initiatives are being refocused to support services, students and teachers with the greatest need:

Incentive grants have been replaced by the ECE Service Teacher Education Grant (ECESTEG). In 2010, 1,000 grants will be available to provide additional targeted support to help services meet the 80% teacher registration target.
The support grant for provisionally registered teachers is being reviewed to provide more targeted support for provisionally registered teachers.
Study grants and ECE TeachNZ scholarships remain unchanged for 2010, but will be reviewed before Budget 2011.

The following initiatives will also cease because they are no longer effectively contributing to Government objectives:

The teacher relief pool
International and national relocation grants
The return to teaching allowance
Government-funded recognition of prior learning

Do Not Proceed with Removing the 6 Hour Daily Limit

Savings Rationale

This initiative reprioritises future funding increases that do not directly support Government’s participation priority.

Although removing the six hour daily limit would have benefited families already using ECE, it would have provided little assistance for children not currently benefiting from ECE. Many of these children are Māori and Pasifika children and children from low socio-economic backgrounds.

Four Year Total Savings – $49.000m

Additional funding was put aside in Budget 2009 to remove the six hour daily limit on 20 Hours ECE from July 2011. This was at a cost of around $16 million per annum.

The decision has been made not to proceed with removing the six hour daily limit for the time being.

This savings initiative reprioritises the planned funding for other expenditure focussed on the Government’s key priority of increasing opportunities for children to participate in quality early childhood education (ECE).

Retaining the six hour daily limit means the 20 Hours ECE policy will continue without change.