Highlights - Budget 2016

Budget 2016 will allocate an additional $1.44 billion ($640.5 million in operating funding over the next 4 years, $727.3 million in capital funding, and $75.1 million in operating funding in 2015/16) to Vote Education over the next 5 years.

This includes:

  • $475.351 million for Forecast Changes in Early Childhood Education, Primary and Secondary Education and Property Values
  • $270.577 million in capital funding and $80.349 in operating funding for the School Property Growth Package
  • $151.567 million in capital funding for the New Zealand Schools Private Public Partnership - Project Two
  • $177.347 million in capital funding (10 year total) and $20.226 million in operating funding (over four years) for the New Zealand Schools Private Public Partnership – Project Three
  • $127.790 million in capital funding and $40.668 million in operating funding for the Christchurch Schools Rebuild programme (as part of the $1.137 billion rebuild programme)
  • $43.153 million Operational Grant Increase to Schools to Support Children Most at Risk of Not Achieving
  • $16.496 million for the Ongoing Resourcing Scheme (ORS) for Special Needs Students
  • $15.280 million for In-Class Support for Students with Special Education Needs
  • $8.880 million for the Intensive Wraparound Service (IWS) for special education students with high and complex learning needs
  • $8.000 million for Supporting Infrastructure Service Delivery
  • $6.000 million for Christchurch Integrated Schools Building Strengthening
  • $1.450 million for Assistive Technology for students with special education needs

Overview of Budget 2016 (Vote Education)

Budget 2016 contains extra education investment of more than $1.44 billion. This investment is focused on getting additional resources to our most disadvantaged students, on better meeting the needs of students in special education and on meeting the demands of roll growth. This extra investment increases overall education spending by 2.5 per cent to $11.04 billion in 2016/17.

New schools and classrooms

Budget 2016 invests an extra $882.5 million in new school property. This investment will ensure that more of our children and young people can access environments better suited to their learning needs.

The School Property Growth Package will fund 480 new classrooms, two new schools, two school expansions and the rebuild of a kura kaupapa Māori. In addition, seven new schools and three school rebuilds and relocations will be delivered via two public private partnerships.

Also included in the Budget package is $127.8 million in capital funding, and $40.7 million in operating funding, to continue the Christchurch schools rebuild over the next four years. To date, seven schools have been completed, 10 are in construction, 21 are in design and nine of these schools are at the planning stage.

Early childhood education

Our ECE standards are amongst the highest in the world. More children are now attending ECE than ever before and more are also attending ECE for longer.

Budget 2016 provides an extra $396.9 million over the next four years, plus $39.2 million in 2015/16, for Early Childhood Education. The $396.6 million will fund an extra 54 million hours of ECE over the next four years. By 2019/20, this will provide funding for an extra 14,000 children.

Between 2008 and 2015, Government expenditure on ECE rose from $860 million to almost $1.63 billion. This is an increase in funding of over 89 percent. Between 2008 and March 2016, the percentage of children starting school who attended ECE rose from 93.6 percent to 96.6 percent. It means that an increasing number of our kids are getting the best start in life.

Extra support for our most at risk students

Budget 2016 uses a Social Investment approach to direct an extra $43.2 million, over four years, to about 150,000 children and young people identified as being at most risk of educational underachievement. These students are those, aged 5 to 18, whose parents have been on benefits for 75 percent of the first five years, or 75 percent of the most recent five years of the students’ lives.

These students have been shown by our research as one of the most at-risk groups in our education system. For example young people who, for an extended period have lived in a benefit-dependent family, have only a 48 percent chance of achieving NCEA Level 2 by age 21. By contrast, 73 percent of the general population with have this qualification by the same age. This research also shows that young people without NCEA Level 2 have more chance of ending up on a benefit, or in the justice system, than those with the qualification.

This additional funding is an investment into schooling where it is most needed. The funding will go to schools, regardless of their decile rating, based on the estimated number of students they have from long-term welfare dependent families. Schools have the flexibility to use this extra funding to support all of their students most at risk of educational underachievement.

This increased funding to schools with children from long-term welfare-dependent families is instead of a universal increase in school operations grant funding. Overall, this new funding approach provides more funding to low decile schools compared to a universal increase of the same amount.

The $43.2 million in increased funding for schools with these children is in addition to the $1.38 billion in operations grant funding that all schools will continue to receive in 2016/17. Operations grant increases have run well ahead of inflation in recent years. Cost adjustments have seen schools’ operations grant funding rose by over 15 percent from the 2010 school year start to the 2015 school year end. By contrast, CPI inflation rose 9.6 percent over the same period.

The Ministry of Education is currently working with the education sector about how funding systems for early childhood education and schooling can be improved to raise achievement for all our children and young people, especially those most at risk of educational underachievement. A Sector Advisory Group has been established to support this work.

More support for students with special needs

Budget 2016 provides an extra $42.1 million, over four years, in additional support for services for students with special needs. Funding for these students has increased by 29 percent since 2009.

Included in this package is a $16.5 million increase in Ongoing Resourcing Scheme (ORS) funding. This will increase the number of students receiving specialist help, including speech therapy, additional teacher time and teacher aide hours, from 8,335 to over 8,600. An extra $15.3 million will provide an additional 550,000 hours of in-class support for an extra 1,250 students with special needs. This means that, together with Budget 2015, this extra support will now be given to 2,750 students each year.

Budget 2016 also provides an extra $8.9 million for the Intensive Wraparound Service (IWS) over the next four years. This will increase the number of special needs students receiving intensive, personalised support by 50 to 335 students a year. The package also includes an extra $1.5 million for the specialised equipment and technology that helps these students better access the curriculum and to learn in class.

Last reviewed: Has this been useful? Give us your feedback