Kids at centre of education funding proposals   18 Nov 2016

Hon Hekia Parata

Minister of Education
18 November 2016
Kids at centre of education funding proposals

Education Minister Hekia Parata says proposed changes to the education funding system will centre on the progress and achievement of children and young people.

“I’ve been saying for some time that the current education funding system is too complicated and that we have poor line of sight from the investment our Government makes in education to how well kids do,” says Ms Parata.

“That’s why I am undertaking a review of the education funding system. There is strong support in the sector and the wider public for a better way of funding schools and replacing the blunt decile system with a mechanism that delivers funding to where it is most needed.

“As part of the first phase of the funding review, the Ministry of Education and I have been working with the sector to explore proposals for changes to the education funding system which place the progress of children and young people at the centre. I recently reported to Cabinet on the first phase and decisions have been made on the next steps.”

They are:

• Determining what’s needed to achieve, and then deliver, a year’s progress in the curriculum for all learners, in every year of their education

• Looking at funding each child in early childhood education, rather than the placed-based approach we have now

• Determining the best ways to target funding for disadvantage to learners most at risk of underachievement, based on a risk index which is calculated from government agencies’ data; and testing better approaches for learning support to students with additional physical, intellectual, or behavioural learning needs

• Defining the criteria for small and isolated schools and early childhood services and considering the role Communities of Learning | Kahui Ako can play in mitigating the impacts of size and isolation

• Considering a new funding formula for independent schools, possibly set at a fixed proportion of the per-child funding amount for state and state-integrated schools

• Looking into changing the arrangements for property maintenance and utilities, to give greater assurance that school property is maintained in the best interests of students and staff, and to secure greater efficiencies in utilities spending

• Strengthening the line of sight between the investment Government makes in education with the outcomes achieved by children and young people.

“Feedback from around 90 meetings the Ministry had with the sector and from the Funding Review Advisory Group indicated that the sector is not ready for the level of flexibility and accountability that comes with a global budget. I have therefore recommended, and Cabinet has agreed, that the global budget proposal not proceed. The global budget was a mechanism for payment, not for determining the level of funding, so this decision will not affect the core purpose of the review,” says Ms Parata.

“We will now set up expert technical reference groups to progress the development of the proposals to their next steps. No final commitments have been made at this stage. I look forward to working closely and constructively with those in the sector who are as eager as I am to have a funding system that is more effective for all children and young people.

“Designing the detail of a new education funding system will be challenging and some aspects will be easier to progress than others.

“I am confident that we all share a common purpose of ensuring the progress and achievement of every young New Zealander.”

More information can be found here.

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