MINISTER'S INTRODUCTION
Welcome to the Wise Up Budget Special. It is one of the wonders of modern
communication that I can send information to more than 2000 schools to
arrive within minutes of the end of Michael Cullen's Budget speech.
(Fingers crossed).
Over recent weeks, there has been a lot of speculation about the Budget and
how tight it was in extra spending. As Michael said in his speech, there
is a strong commitment to sound fiscal management but there is an equally
strong commitment to the transformation of the economy, which is reflected
in a range of policy announcements and spending proposals.
Education is a key tool in that transformation. Today's Budget committed
an extra $467 million over four years to education. That does not include
any of the new funding for the review of school staffing and teachers' pay,
which is funded from the 2001 Budget contingency.
I think we've managed to achieve a very good balance between addressing
some of the immediate issues and investing in long term goals.
This issue of Wise Up will give you an indication of some of the education
initiatives in the Budget. In some cases, policy work is quite advanced.
In others, we have identified a need and made a funding commitment to
addressing that need, but there is still a bit of work to be done before we
can fill in some of the detail.
I will use this forum to update you about ongoing work over the next few
months.
In the meantime, if you want to look over other aspects of the Budget,
there is material available on www.executive.govt.nz and the Ministry of
Education will have a bit more detail about some of the education
initiatives at www.minedu.govt.nz/index.cfm?id=5789 .
Happy reading.
Trevor Mallard
Minister of Education
Trevor Mallard
Minister of Education
EQUITY FUNDING FOR EARLY CHILDHOOD
The budget allows nearly $30 million over the next four years to implement
the Government's policy of equity funding for the early childhood education
sector. An equity funding model will be finalised over the next few months
to distribute the extra money.
"It will be targeted to licensed and chartered community-based early
childhood education services in low socio economic communities and isolated
areas. Other factors such as special education needs will also be taken
into account," Trevor Mallard said.
"Quality early childhood education is a key tool to reduce disparities
across communities in New Zealand. Research shows it increases a child's
chance of educational achievement later in life.
"The early childhood education funding subsidy of 2.8 per cent will also be
adjusted. New rates range from $1.10 an hour for children in license
exempt centres to $3.56, the top rate for children aged two and over; and
$5.92, the top rate for children under two," Trevor Mallard said.
SUPPORT FOR PRINCIPALS A FOCUS IN THE BUDGET
The budget contains a significant investment in school principals, as part
of the Government's commitment to improving quality in schools.
Initiatives include the provision of leased laptop computers to principals,
with 600 new laptops made available each year.
Education Minister Trevor Mallard said first time new principals would have
priority for the laptops, and would also participate in induction
programmes.
"Many principals have described to me the struggle of the first few years.
If principals are better prepared, we will have better schools and better
learning. The Budget sets aside $27.4 million over four years, including
$19 million of new funding, for Leadership and Management Development for
principals. The package is practical and has been designed with input from
working principals. It also includes funding for professional development
guidance and an electronic principals' network that provides access to
examples of good practice," Trevor Mallard said.
NCEA SPENDING
The Budget includes more than $15 million a year for implementation of the
National Certificate in Educational Achievement [NCEA]. This includes
nearly $3 million of new funding next year to go towards the operation of
the certificate; maintenance and development of standards and exemplars;
teacher professional development; scholarship standards; and further
assessment policy work.
"The National Certificate of Educational Achievement is one of the most
contentious issues within secondary education," Trevor Mallard said.
"I don't want next year's Year 11 students to take part in this new
qualification and feel that there is a cloud hanging over it. To achieve a
sound transition, we have to properly fund both the implementation and
ongoing work."
PLANNING AND REPORTING CHANGES
There is $5.8 million over four years in the Budget to help with planning
and reporting changes. The changes, part of the Education Amendment Bill
No 2, will improve the quality of teaching by making better information
available to schools, government and parents.
The Bill is currently before the Education and Science Select Committee and
is expected to be reported back into the House within a few weeks.
SCHOOL OPERATION FUNDING
School operation funding will increase by a net 1.6 percent.
Trevor Mallard said the increase took into account savings made through
cost efficiencies in the schools' insurance scheme.
"We've negotiated improvements to the scheme which provides an extremely
comprehensive cover for the $8 currently charged per pupil each year. For
the first time, schools in the central scheme will be covered for public
liability, punitive and exemplary damages, trustees' cover, employers
liability, fidelity guarantee, and general legal expenses.
"We are taking advantage of efficiencies of scale available to the large
education sector in order to get a top notch deal for schools. Government
currently funds $12.66 for each pupil each year for insurance. Those
savings can now be used to fund other positive initiatives in education.
"However, the regular operational funding adjustment that this Government
has promised schools means that their operating funding will still increase
by a net 1.6 percent."
DOUBLE THE FUNDING FOR ADULT LITERACY
The Government has also doubled funding for adult literacy, setting aside
$18 million over four years to fund the Adult Literacy Strategy, released
earlier this month. Associate Education Minister Marian Hobbs will oversee
the implementation of the strategy, which seeks to provide a comprehensive,
long-term approach to improving adult literacy.
ACCESS TO QUALITY LEARNING FOR THE KNOWLEDGE SOCIETY
Increased funding for tertiary institutions to freeze their fees again next
year and a package of measures to ensure teaching and research quality are
funded in Budget 2001.
An additional $220.7 million has been allocated over the next four years to
support the Government's commitment to improving standards in tertiary
education and to cut the cost to students.
"The Government wants to hold fees again in 2002," Associate Minister of
Education (Tertiary Education) Steve Maharey said.
"We will fund all growth in student numbers. We are also investing $36.9
million this year on top of $31.8 million set aside in the last Budget.
This makes a total fee stabilisation offer next year of a 5.1% increase on
2000 rates to those institutions that commit to keeping their fees at
current levels."
BUILDING SKILLS FOR THE KNOWLEDGE SOCIETY
The Government will plough an extra $56 million over the next four years to
buy an estimated 17,400 additional industry training places, Associate
Education Minister (Tertiary Education) Steve Maharey said today.
He said the funding boost would ease skill shortages in the economy and
contribute significantly to the Government's goal of developing an
inclusive knowledge society.
"The increase builds on the $23 million allocation provided last year and
will take total investment in industry training to $338.9 million over the
next four years."
TERTIARY EDUCATION COMMISSION
The Government will set up a new Tertiary Education Commission to improve
the quality, relevance and cost effectiveness of the tertiary education
sector, Associate Education Minister (Tertiary Education) Steve Maharey
said today.
"The decision is in response to Shaping the System - the Tertiary Education
Advisory Commission's report received by the Government in February.
"Clearly the tertiary education sector has a fundamental role to play in
the development of a knowledge society. But the present system is
fragmented, suffers from a lack of differentiation and does not produce
sufficient graduates with the skills the economy needs."
CONTACTS AND SUBSCRIPTION
Receive Wise Up by e-mail
Hon Trevor Mallard - Minister of Education
Fax: 04 495 8448 e-mail: tmallard@ministers.govt.nz
Hon Steve Maharey - Associate Minister of Education (tertiary)
Fax: 04 495 8443 e-mail: smaharey@ministers.govt.nz
Hon Lianne Dalziel - Associate Minister of Education (special education; transport)
Fax: 04 495 8463 e-mail: ldalziel@ministers.govt.nz
Hon Marian Hobbs, Associate Minister of Education
Fax: 04 495 8467 e-mail: mhobbs@ministers.govt.nz
Hon Parekura Horomia - Associate Minister of Education (Maori education)
Fax: 04 495 8457 e-mail: phoromia@ministers.govt.nz
