Education Property

The Government is investing $1.5 billion in education and kōhanga reo property over four years. This significant funding injection for property will provide warm, safe and dry classrooms for students.

The school and kura property portfolio

  • The Ministry of Education oversees and supports property management at more than 2,100 schools.
  • This property portfolio is the second largest social property portfolio in New Zealand with over 16,000 buildings, around 8,000 hectares of land, and 36,500 teaching spaces.
  • Financially, the school and kura property portfolio has a book value of $30.3 billion, and the buildings have a replacement value of more than $40.0 billion (as at 30 June 2023).
  • The building stock is aging and requires significant investment. One third of the Ministry’s portfolio is older than 50 years, 45% is between 20 and 50 years old, and the remaining 22% was built in last 20 years.
  • In 2023, condition data showed that approximately 2,000 buildings had major issues, and four times as many (approximately 8,000) buildings had minor issues.
  • All students need quality classrooms so they can learn the skills they need to succeed and excel. Well-maintained facilities provide quality learning environments to help students learn. Our school buildings should be modern, fit for purpose and resilient to better serve future students to succeed.
  • The Ministry has ring-fenced new capital over the last five Budget cycles to fund the Māori Medium Education (MME) programme, which delivers additional capacity for Kura Kaupapa Māori (KME) and MME classrooms and schools, and addresses property provision and condition issues at KME and MME schools. Approximately $100 million in capital funding will support the delivery of MME and KME projects across the 2024/25 financial year.
  • The Ministry’s internal Value for Money reviews are nearly complete, and the outcomes will be released publicly in an Investment Schedule for 2024/25. The reviews will identify ways that the Ministry’s property delivery can maximise cost efficiencies and prioritise core infrastructure needs.
  • The outcome of the independent Ministerial Inquiry into School Property is due in June 2024, and will inform the Ministry’s future approach to property funding, planning and delivery in a way that is sustainable, efficient and effective.

Budget 24 

  • Budget 24 invests $1.5 billion (including $608 million in capital) over four years in education and kōhanga reo property.
  • Of this $1.48 billion relates to school and kura property and will mean that kids can learn in safe, warm and dry schools, and the school property portfolio can expand to accommodate more students.
  • This investment will allow schools to use buildings for longer, knowing they are well maintained and safe for students.
  • Investing $12 million over four years in kōhanga reo property maintenance will assist Te Kōhanga Reo National Trust to maintain and upgrade properties.

School property portfolio depreciation expenses

  • $780 million opex

This initiative provides additional depreciation funding to maintain and upgrade the school property portfolio.

Previous depreciation funding was insufficient to undertake the necessary repair and upkeep works needed for schools to have warm, safe and dry classrooms.

This funding will be distributed across the school property portfolio for maintenance and renewal activities such as:

  • remediating mould and weathertightness issues,
  • testing for and removing asbestos,
  • repairing and replacing roofing material, and
  • upgrading heating, ventilation, and air conditioning systems.

This significant funding uplift will support the funding of condition and upgrade projects in the Value for Money review, which would otherwise have been deferred. In addition, this initiative will also fund essential condition projects in the wider portfolio.

School property portfolio growth

  • $56 million opex
  • $400 million capex

This funding will support the expansion of the School Property Portfolio, including new schools, expansion of existing schools and land purchases as students and their families learn and live in new and different places.

This funding delivers up to 8,000 student places, including:

  • future Roll Growth (approximately 300 classrooms) across the Ministry's roll growth programmes, and,
  • new Schools funding for up to four new schools.

Christchurch schools' rebuild

  • $34 million opex
  • $144 million capex

This initiative provides funding to complete the remaining projects in the Christchurch Schools' Rebuild Programme following the 2010 and 2011 earthquakes.

This funding delivers upgrades and rebuilding projects at 17 Christchurch schools which have not yet completed the programme.

This funding is expected to benefit more than 12,000 students.

Marlborough Boys’ and Girls’ Colleges and Bohally Intermediate redevelopments – tagged contingency

  • $6 million opex
  • $64 million capex

This initiative provides funding to complete the design and delivery of a solution to address condition issues at Marlborough Boys’ and Girls’ Colleges and Bohally Intermediate. These projects will enter construction in early 2025, ending the wait for the Blenheim community.

This initiative will deliver targeted refurbishments and replacements to improve property at the three schools. These works will deliver safe and healthy learning environments, and additional capacity to meet forecast demand. Learning support facilities for students with high needs will also be provided, located at Marlborough Boys’ College.

This investment will benefit approximately 2,450 students attending these schools as well as teachers/principals and the wider community.

Kōhanga Reo property maintenance

  • $12 million opex

This funding will assist with property maintenance and upgrade cost pressures in kōhanga reo early learning services, providing additional ongoing funding for Te Kōhanga Reo National Trust property.

This funding will assist the Trust to maintain and upgrade properties used for kaupapa Māori learning across approximately 420 kōhanga reo. These kōhanga reo have around 8200 mokopuna enrolled in them (as at July 2023).

How is this being funded? 

Vote Education investment is funded through a mix of new Crown funding and reprioritisation of existing Vote Education baseline. In total Vote Education savings are around $429 million.

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