… as well as our investment in education
At the Half Year Update, core Crown operating expenditure on education for 2019/20 was forecast to be $2.0 billion higher than 2016/17 - an increase of 15.2 per cent over three years. In Budget 2019 we committed to investing another $2.1 billion operating and $1.5 billion capital over the forecast period in our schools, early childhood education providers, tertiary education system, learning support and teachers, and to reduce education costs for parents and whānau. This investment built on funding for tertiary education through the 100-Day Plan, as well as the additional $3 billion (combined operating and capital) committed to education in Budget 2018.
Figure 4 - Core Crown education operating expenditure
Source: The Treasury
Budget 2019 made the largest investment in school property by a New Zealand Government, committing $1.2 billion of capital expenditure for the first waves of a 10-year School Property Programme. This was in addition to the $332 million of capital invested in school property through Budget 2018.
Budget 2019 invested $131 million in across-the-board increases to early childhood education subsidy rates, the largest funding increases to early childhood education subsidy rates over the last decade and the first full rates adjustment since 2007. This builds on the additional $105 million invested through Budget 2018.
Similarly, we have invested in core resourcing for schools by providing just under $180 million through both Budget 2018 and Budget 2019 combined for schools' operational grants. We have also negotiated the largest pay increases for teachers in a decade and invested $135 million in teacher supply initiatives.
Learning Support has also received a boost, receiving $336 million in new operating funding and $95 million in capital funding in Budget 2019. This will alleviate critical cost pressures that have built up over the past decade, as well as provide for new Learning Support Coordinators in schools.
We are investing in vocational education to create a strong, unified, sustainable system for all vocational education that delivers the skills that learners, employers and communities need to thrive. Through Budget 2019 we set aside an initial $197 million for this reform, as well as $154 million for tuition and training subsidy increases.
Through the 100-Day Plan we are providing the first year free for those studying in tertiary education for the first time, benefiting 47,019 learners in 2018. We also increased student allowance rates by $50 per week for single students from 1 January 2018, supporting over 50,000 learners each year. Student allowance rates had not increased since 1 April 2012, and now student allowance rates will continue to increase in line with inflation.
We have also taken a number of practical steps to relieve financial pressure on families when it comes to their children's education. Budget 2019 set aside $266 million for increased funding for deciles 1-7 schools that agree not to request donations from parents. Nearly 90 per cent of eligible schools have opted into the scheme. We've also committed $49 million to remove National Certificate of Educational Achievement (NCEA) fees for the 168,000 New Zealanders who study these qualifications each year.
Under this Government:
- there are 419,417 children in schools that are no longer asking for parental donations
- there are 2,000 more teachers
- 726 new classrooms have been built or upgraded for more than 15,000 students
- we announced over $1.0 billion of classroom upgrades - this investment will upgrade at least 1,100 classrooms for around 33,000 students
- we announced a package of $400 million for school property improvements for nearly all state schools.