Schooling initiatives and savings

Details of the main schooling initiatives and savings announced in Budget 2010.

Schooling initiatives

Initiative	Description
Adjustments to Operations Grant Funding Operating funding 2010/11 $22.100m 2011/12 $44.294m 2012/13 $44.717m 2013/14 $44.748m Four Year Total $155.859m	All components of school operational funding will be increased by 4%. This increase will: provide schools with additional funding to cover increased costs due to inflation direct more funding to the front line provide secondary schools with additional funding at the same time as quarterly roll counts are introduced.
School Property Portfolio Management Operating funding 2009/10 $1.284m 2010/11 $60.542m 2011/12 $42.027m 2012/13 $52.772m 2013/14 $53.087m Four Year Total $208.428mCapital funding 2010/11 $101.298m 2011/12 $26.152m 2012/13 $12.900m 2013/14 $0.500m Four Year Total $140.850m Four Year Total (Capital and Operating) $349.278m	School property operating expenditure will be invested in the following: depreciation on school property following revaluation removal of unused and derelict buildings from vacant school sites, and from open schools when requested defective buildings programme School Network Upgrade Programme (SNUP) depreciation redevelopment of the Property Management Information System (PMIS) new schools building programme New funding for school property capital expenditure will be invested in the following: new schools building programme defective buildings programme redevelopment of the PMIS.
Cash Reimbursement for Schools’ Unused Staffing Entitlement Operating funding 2010/11 $10.000m 2011/12 $10.000m 2012/13 $10.000m 2013/14 $10.000m Four Year Total $40.000m	Schools will receive a cash reimbursement for any unused staffing entitlement remaining at the end of the year, limited to 10% of its total staffing entitlement. Currently, schools miss out on any staffing entitlement that they do not use up before the end of the year. Giving schools a cash reimbursement for unused staffing entitlement will: ensure schools get all the resources they are entitled to direct more resources to the front line give schools more flexibility in how they use their resources.
Youth Guarantee – 500 Additional Places Operating funding 2010/11 $3.337m 2011/12 $9.770m 2012/13 $15.957m 2013/14 $19.050m Four Year Total $48.114m	This initiative adds a further 500 Youth Guarantee tertiary places to the 2,000 places already available from 1 January 2011. More young people will be able to access tertiary education and gain qualifications leading to employment.
Maori-medium Assessment Tools to Support Ngā Whanaketanga Rumaki Māori Operating funding 2010/11 $2.180m 2011/12 $4.380m 2012/13 $3.080m 2013/14 $2.980m Four Year Total $12.620m	This additional funding will support Ngā Whanaketanga Rumaki Māori – Māori-medium National Standards. It will enable the development and design of assessment tools so teachers can effectively monitor progress and achievement against Ngā Whanaketanga Rumaki Māori. It will also enable the development of a programme to regularly sample achievement in Māori-medium settings.
Change of Class Applications for 7 Kura to become Composite Operating funding 2010/11 $1.200m 2011/12 $2.400m 2012/13 $2.400m 2013/14 $2.400m Four Year Total $8.400m	The Minister of Education has approved a change of class for seven kura kaupapa Māori from Year 1-8 primary schools to Year 1-13 composite schools from term two 2010. This additional funding covers the increased cost to the Crown for the students.
Board of Trustees Training Operating funding 2010/11 $1.000m 2011/12 $ - 2012/13 $ - 2013/14 $ - Four Year Total $1.000m	This funding provides training for new Boards of Trustees following the 2010 board elections. It includes the provision of webinars and e-workshop training for all boards, and specific training for boards according to need.
Aligning Staffing for Years 7 and 8 across School Types Operating funding 2010/11 $2.100m 2011/12 $4.200m 2012/13 $4.200m 2013/14 $4.200m Four Year Total $14.700m	Currently non-contact time/classroom release time is not resourced for teachers of Year 7 and 8 students in secondary schools, or teachers of students under Year 9 in area schools. Addressing this anomaly would provide greater equity across school types and year levels, and would ease the current pressure on area schools to meet collective agreement requirements. This funding corresponds to paying for an additional 65 Full-Time Teaching Equivalents across the sector.
Extend Access to State Schools for Children of Illegal Immigrants Operating funding 2010/11 $1.816m 2011/12 $1.816m 2012/13 $1.816m 2013/14 $1.816m Four Year Total $7.264m	The Immigration Act 2009 has removed the penalty provision which made it illegal for principals to enrol any child who was unlawfully in the country. As a result the Minister of Education has approved extending an automatic right to enrol the children of long-stay unlawful migrants, who are ordinarily resident in New Zealand, in a state school. These children will not be differentiated from other state school students. This funding covers the increased costs of additional students attending schools.These changes to immigration legislation are likely to come into force later this year.
School Staffing – not pursuing Budget 2009 staffing reductions Operating funding 2010/11 $ - 2011/12 $45.000m 2012/13 $50.000m 2013/14 $50.000m Four Year Total $145.000m	The Government’s continuing focus on frontline services means that school staffing reductions signalled in last year’s Budget will not be pursued.
Continuing the Kiwi Can Programme Operating funding 2010/11 $0.300m 2011/12 $0.300m 2012/13 $0.300m 2013/14 $0.300m Four Year Total $1.200m	Funding for the Kiwi Can programme is continuing. Kiwi Can aims to improve life skills and values by developing an “I Can” attitude, and broaden learning experiences at school. Kiwi Can leaders deliver the programme into approximately 70 decile 1-3 primary and intermediate schools nationally.
Modify Systems to Implement Quarterly Roll Count Savings Operating funding 2010/11 $0.280m 2011/12 $0.280m 2012/13 $0.280m 2013/14 $0.280m Four Year Total $1.120m Capital funding 2010/11 $1.400m 2011/12 $ - 2012/13 $ - 2013/14 $ - Four Year Total $1.400m Four Year Total (Capital and Operating) $2.520m	Implementing quarterly roll counts as the basis for allocating operational funding for students in Years 9 – 13 requires one-off changes to the Ministry’s IT system for calculating and distributing school resourcing.
Forecast Changes for School Operations Expenditure, Teacher Salaries and School Transport Operating funding 2009/10 $9.397m 2010/11 $8.671m 2011/12 $11.612m 2012/13 $13.404m 2013/14 $14.723m Four Year Total $48.410m	Forecasting changes are increases in expenditure that are driven by the need to spend more (or less) than previously forecast to pay for existing policy. These forecast changes include: School operations – a technical adjustment. School transport – largely driven by inflation adjustments to funding rates for transport providers. Teacher salaries – due to higher than expected salary costs as a result of: greater than expected retention of experienced teachers being paid at the top end of the teacher salary scale more senior secondary students staying at school higher than predicted uptake of Kiwisaver.

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Schooling savings

Initiative	Description
Quarterly Roll Counts for Secondary School Operational Funding Savings Rationale Quarterly roll counts will mean that the Government will no longer pay schools operating funding for students who leave school during the year. While the rationale for this change is to incentivise schools to increase student retention, it will also result in a reduction in expenditure on operational funding for the Government of an estimated $6 million in 2011. However, these savings would reduce if schools are successful in improving student retention. Four Year Total Savings – $19.000m	From 2011 operational funding for Years 9 – 13 (in all state and state-integrated schools) will be allocated using four roll counts a year, taken quarterly, instead of just one roll count at the beginning of the year. Quarterly roll counts will improve the accuracy of the school funding system by more directly linking operational funding to the number of students actually enrolled at a school. This will provide an incentive for schools to improve student retention and outcomes by keeping students engaged in school. Schools can maximise their funding by improving their student retention. Improving student engagement in education is consistent with the policy aims of the Youth Guarantee.

Initiative

Description

Quarterly Roll Counts for Secondary School Operational Funding

Savings Rationale

Quarterly roll counts will mean that the Government will no longer pay schools operating funding for students who leave school during the year. While the rationale for this change is to incentivise schools to increase student retention, it will also result in a reduction in expenditure on operational funding for the Government of an estimated $6 million in 2011. However, these savings would reduce if schools are successful in improving student retention.

Four Year Total Savings – $19.000m

From 2011 operational funding for Years 9 – 13 (in all state and state-integrated schools) will be allocated using four roll counts a year, taken quarterly, instead of just one roll count at the beginning of the year.

Quarterly roll counts will improve the accuracy of the school funding system by more directly linking operational funding to the number of students actually enrolled at a school. This will provide an incentive for schools to improve student retention and outcomes by keeping students engaged in school.

Schools can maximise their funding by improving their student retention.

Improving student engagement in education is consistent with the policy aims of the Youth Guarantee.