Summary of Vote Education and Vote Tertiary Education initiatives

This table excludes initiatives funded as emergency expenditure in response to COVID-19.

Cost pressure initiatives

Budget Initiative and Funding

(five-year operating and 10-year capital)

Description
Adjusting Learning Support Funding for Population Growth

Vote Education
  • Operating = $38.859m
This initiative will provide funding to maintain support to the 20-25% of children in early childhood education and schooling who require additional support to fulfil their learning potential. Currently only some targeted learning supports are adjusted for population growth. As student numbers grow and their needs change, this means that the real value of funding decreases. This initiative maintains the value of learning support funding by adjusting it for changes in total student numbers. Led by the Associate Minister of Education, Hon Tracey Martin.
Changes in Demand

Vote Education
  • Operating = $100.359m
This initiative will provide funding for the impact of Forecast Changes in the 2019 March Baseline Update and October Baseline Update processes. This covers projected changes in expenditure on teacher salaries, schools operational funding, Early Childhood Education subsidies, integrated schools’ property, and school transport in response to changes in demand. Led by the Minister of Education.
Christchurch Schools Rebuild Programme

Vote Education
  • Operating = $25.800m
  • Capital = $91.420m
This initiative aims to rebuild the network of Christchurch schools following the 2010 and 2011 earthquakes. This will be done by funding the Christchurch Schools’ Rebuild (CSR) programme for another year. This is consistent with the $1.137 billion announced in 2013, and the $206 million cost increases identified in the 2018 midpoint review. Funding to complete the CSR programme will be sought through future budgets. Led by the Minister of Education.
Contingency: Administration of Code of Practice for Pastoral Care of Domestic Tertiary Students

Vote Tertiary Education
  • Operating = $6.055m
This initiative will provide funding to administer a domestic code of pastoral care for domestic tertiary students, and an associated disputes resolution scheme, with effect from 2021. Led by the Minister of Education.
Contingency: Schools Payroll – Additional Education Payroll Limited Core Services Funding

Vote Education
  • Operating = $7.600m
This initiative will provide funding for an increase in Education Payroll Limited’s (EPL) fee for the delivery of core payroll services. This includes transaction volume increases over the initial three-year term of the contract and transition to a new operating model. Led by the Minister of Education.
Continuing the Early Childhood Education Provider Assessment Group

Vote Education
  • Operating = $7.847m
This initiative will provide funding to continue the Early Childhood Education (ECE) Provider Assessment Group (PAG). PAG provides stewardship of the ECE sector and ensures that public funds are used appropriately. PAG uses data and evidence to identify ECE services at risk of providing poor outcomes, and proactively investigates ECE providers with indicators of financial difficulty or mismanagement, including detecting and addressing fraud. Led by the Minister of Education.
Cost Adjustment for Early Childhood Education Subsidies

Vote Education
  • Operating = $122.651m
This initiative will provide funding for a cost adjustment of 1.6% for the Early Childhood Education (ECE) Subsidy for under 2s, ECE Subsidy for 2 and overs, 20 Hours ECE, Equity Funding (all components), and Targeted Funding for Disadvantage, with effect from 1 January 2021. These subsidies enable early learning service providers to deliver quality early childhood education (ECE) for the children in their care. The cost adjustment would enable providers to maintain existing levels of quality ECE in the face of rising costs. Led by the Minister of Education.
Cost Adjustment for Schools’ Operational Grant

Vote Education
  • Operating = $105.205m
This initiative will provide funding for a cost adjustment of 1.6% for schools’ operational grant funding, including base funding for Te Aho o Te Kura Pounamu (Te Kura), with effect from 1 January 2021.This is core resourcing to support teaching and learning, and the maintenance of the Crown’s investment in school property. This initiative seeks to ensure schools can maintain current service levels in the face of rising cost pressures. It also includes some additional resourcing for heat, light and water on top of the 1.6% increase. All students at all state and state-integrated schools will benefit from this increase. Led by the Minister of Education.
Cost Adjustment for Secondary-Tertiary Programmes (Trades Academies)

Vote Education
  • Operating = $6.265m
This initiative will provide funding for a cost adjustment of 1.6% to baseline funding for secondary-tertiary programmes (Trades Academy) funding. A cost adjustment will help schools and tertiary education organisations (TEOs) maintain the quality of tuition and training, as well as meet other core costs associated with running programmes. This will be done by increasing the General Teaching and Learning and the Trades Top-up components of the Trades Academy funding model, and will also be used to meet transport costs. Led by the Minister of Education.
Cost Adjustment for Tuition Subsidies

Vote Tertiary Education
  • Operating = $140.977m
This initiative will provide funding to increase tertiary education tuition and training subsidies to maintain the quality of tuition and training as costs in the tertiary education system (particularly labour costs) increase over time. The increase in per-student subsidies will help ensure delivery by providers remains relevant and responds to students’ and employers’ needs. The increase strikes a balance between helping providers manage increases in delivery costs, but with an expectation that they make effective and efficient investments to maintain quality and sustainability. Led by the Minister of Education.
English for Speakers of Other Languages

Vote Education
  • Operating = $21.226m
This initiative will provide an increased amount of funding of 12.19% for each English for Speakers of Other Languages (ESOL) student, and addresses the cost pressures that schools are encountering. Over the last six years, additional funding for ESOL has addressed volume increases with no rate increases since 2010. With increases in salaries and rates in the past five years, ESOL funding is not meeting schools’ rising costs for quality provision. Led by the Associate Minister of Education, Hon Jenny Salesa.
Home-based Early Childhood Education: Support for Educators to Become Qualified

Vote Education
  • Operating = $36.150m
This initiative will provide funding to enable the existing educator workforce to transition to a minimum Level 4 Early Childhood Education (ECE) qualification. This includes funding for visiting teachers to support the educator workforce as they complete the Level 4 ECE qualification. Home-based ECE services on the quality funding rate will receive a 3.8% rate increase. Funding will also enable changes to Ministry of Education IT systems so that the Ministry can collect information on visiting teachers, educators and homes. Led by the Minister of Education.
Improving Teacher Pay in Education and Care Services

Vote Education
  • Operating = $151.124m

Government announces pay increases for lowest paid teachers (external link)
This initiative will provide funding to improve pay for qualified and certificated teachers in education and care services. Improving pay rates will increase teacher wellbeing, improve retention, make studying to become a qualified Early Childhood Teacher (ECE) teacher more attractive, and promote more consistent quality education and care. Led by the Minister of Education.
Managing Growth at Public Private Partnership Schools

Vote Education
  • Operating = $31.493
  • Capital = $23.781
This initiative will provide funding to expand four Public Private Partnership (PPP) Schools due to growing rolls, as forecast in the National Education Growth Plan. The schools are Wakatipu High School, Rolleston College, Hobsonville Point Primary and Te Ao Mārama. This funding will expand the schools’ capacity by a total of 1,860 student spaces. This initiative will provide the total capital and ongoing operating funding to support these expansions to the end of the PPP project agreement. Funding covers the cost of designing, building, financing and maintaining the expansions. Led by the Minister of Education.
Pay Equity

Vote Education
  • Operating = $3.403m
This initiative will provide funding for the investigation and resolution of pay equity claims which seek to remove gender-based undervaluation in the schooling system lodged by unions on behalf of staff and teachers employed by Boards of Trustees. The Ministry is legally required to consider these claims, and negotiate and recommend settlements on behalf of the Crown. Led by the Minister of Education.
School High Health Needs Fund

Vote Education
  • Operating = $19.655m
This initiative will provide additional funding for the School High Health Needs Fund (SHHNF). SHHNF provides teacher aide support for students with high health needs who need care and supervision for more than six weeks so they can attend school safely.
Since 2014 the number of students supported through the SHHNF has grown by an average of 16.3% each year. This initiative ensures that funding will be sufficient to meet demand. Led by the Associate Minister of Education, Hon Tracey Martin.
School Investment Package

Vote Education
  • Operating = $104.560m
This initiative will provide funding to cover the capital charge and depreciation costs required to implement the School Investment Package (SIP). The package was announced by Government on 1 December 2019 and allocated approximately $400m capital funding to improve the condition of school property for around 2,050 schools across New Zealand. Led by the Minister of Education.
Schools Payroll Strategy and Compliance

Vote Education
  • Operating = $2.000m
This initiative will provide funding for the development of a programme of work to ensure that the schools payroll service continues to be compliant with legislation and employment agreements. It also covers the next phase of school payroll strategy development, including developing and assessing potential future options for school payroll delivery. Led by the Minister of Education.
Supporting Kōhanga Reo Cost Pressures

Vote Education
  • Operating = $93.370m
This initiative will provide ongoing funding for staffing cost pressures in kōhanga reo, in the context of helping to respond and resolve the Wai 2336 kōhanga reo claim findings and government obligations to protect the taonga of te reo Māori. In 2019/20 only one year of additional funding ($21.5 million) was provided. That additional funding has been disbursed to kōhanga reo via increased funded child hour (FCH) rates for the Early Childhood Education (ECE) Subsidy and 20 Hours Subsidy. Led by the Associate Minister of Education, Hon Kelvin Davis.
Supporting Playcentre Sustainability

Vote Education
  • Operating = $3.073m
This initiative will provide funding for playcentres to help support financial sustainability of this service type. Led by the Minister of Education.
Supporting the Education Infrastructure Service

Vote Education
  • Operating = $15.000m
This initiative will provide one year’s funding to boost Education Infrastructure Service (EIS) departmental operating budget (excluding capital charge, depreciation, and Public Private Partnership schools). This is due to an increase in the cost of managing a growing school property portfolio and the reduction of available revenue. Funding will enable EIS to maintain progress for its various work programmes, in addition to gearing up for any new pipelines of capital spend and service delivery to schools, without compromising crucial services such as rationalisation and personnel (including frontline staff who provide valuable support and advice to schools). Led by the Minister of Education.

 

Other necessary spending initiatives

Budget Initiative and Funding

(five-year operating and 10-year capital)

Description
Extending the Pilot of the Community Organisation Refugee Sponsorship (CORS) Category

Initiative led by Ministry of Business, Innovation and Employment

Vote Education
  • Operating = $1.065m

Vote Tertiary Education
  • Operating = $0.849m
Led by the Minister of Immigration. This initiative provides funding to extend the Community Organisation Refugee Sponsorship (CORS) category pilot for a further three years in order to gather more information on the effectiveness of this method of refugee resettlement at meeting its objectives.
Ministry of Education Payroll: Holidays Act Assessment Work

Vote Education
  • Operating = $2.000m
This initiative will provide funding to identify, assess and find solutions for areas of non-compliance with the Holidays Act 2003 for the Ministry of Education's departmental payroll. Led by the Minister of Education.
Support For Decarbonisation In The State Sector Through Funding Assistance To Deliver Low Emissions Energy Investments

Initiative led from Vote Business, Science and Innovation in the Economic Development and Infrastructure Sector

Vote Education
  • Operating = $9.882
A State sector decarbonisation programme would deliver funding and implementation assistance to enable agencies in the State sector, including hospitals and schools, to deliver low emissions investments without the need to divert existing funding from core service delivery. Led by the Minister of Energy and Resources
Supporting the Teaching Council of Aotearoa New Zealand to Transition to an Annual Practising Certificate Fee

Vote Education
  • Operating = $16.500m
This initiative will provide funding to make up the difference in the Teaching Council of Aotearoa New Zealand's income over two years to enable it to transition to an annual practising certificate fee. The transition to an annual practising certificate fee is expected to help to mitigate the impact on teachers of the Council’s increased practising certificate fee. The annual fee will mean that teachers will pay a smaller annual amount of approximately $157, rather than a larger sum of $470 every three years. Led by the Minister of Education.

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