Funding of Primary Schools
Introduction
Principals are referred to the Ministry of Education’s Funding,
Staffing and Allowances Handbook. Updates of the sections of the Handbook are sent out to schools. The Handbook should be kept up to date at
all times and adjustments should be recorded in the Version Control log at
the front of each Handbook.
The most up-to-date version of the Handbook is accessible on the Ministry
website. The pathway is: www.minedu.govt.nz/goto/resourcinghandbook.
E-mail enquiries can also be directed to resourcing@minedu.govt.nz.
Calculation Bases
There are a number of different calculation bases for funding. Some
funding such as the Ongoing and Reviewable Resourcing Scheme (ORRS), English for Speakers of Other Languages, and Maori Language Resourcing are based on verified numbers of actual
students that attract the funding. Otherwise, the two most important
calculation bases are Funding Rolls and Decile Ratings.
Funding Rolls
The roll numbers at the July predicted in the March roll return are used
to calculate the funding entitlement for the following year (with a new
entrant component - where relevant - factored in).
During the actual school year, returns of the actual roll at March and
July are used to adjust the entitlement (this methodology differs slightly for
intermediate and composite schools).
The system also contains methodologies for changing roll predictions and
dealing with extraordinary roll growth.
The funding roll is used to calculate most categories of Operations
Funding (see below).
Decile Rating
This is a census-based indicator used to measure the extent to which
schools draw from particular socio-economic communities. Every state and
state integrated school is ranked into deciles (10% groupings) on the basis
of the indicator.
The indicator is based on census data for households with school-aged
children in each school's catchment area, together
with ethnicity data from each school's roll returns.
Decile ratings determine the allocation of Targeted Funding for
Educational Achievement (TFEA), the Special Education Grant (SEG) and Decile
Discretionary Funding.
Decile changes are made every five years, based on the previous year's census information on a school community's socio-economic make-up. The most recent decile changes were announced in September 2007 as a result of the Ministry's review of information from the 2006 census. In this process, schools which move up the decile scale lose money from their budgets.
NZEI has advocated a clear transition process for schools, with sufficient time for schools to change their budgets, and with transitional funding available to help plug shortfalls or to cover off expenses or projects which may already be underway.
To read more about how decile changes occur, read more.
Entitlement and Instalment Notices
An initial entitlement notice is issued in mid-September for the following
year and shows the school's provisional entitlement for the main operational funding
components (see below) for the following year.
Some funding such as RTLB funding does not appear on the entitlement
notice but appears as adjustments on the quarterly installment notice.
A new entitlement notice is issued if any of the main operational funding
components change (as they may when funding is recalculated in accordance
with the actual roll).
The main operational funding components are paid quarterly, in advance (as
are a number of other funding components and Supplementary Entitlements). An instalment notice is issued immediately prior to the
payment of each quarterly instalment.
"Area Histories" relevant to property funding (give link to Property
section of kit) is also included in the entitlement notice.
Categories of Funding
Funding is divided broadly into Operational Funding and Supplementary
Entitlements.
Operational Funding
Operational Funding is the Government funding received to implement the
school charter and to pay for the running of the school. This funding does
not include the salaries of entitlement teachers, property or other large
capital items. It consists of a range of set components but boards of
trustees are nevertheless free to decide how the money should be spent.
Subject to a number of conditions set out in the Funding, Staffing and
Allowances Handbook, and subject to the provisions of the Primary
Teachers', Deputy Principals, Assistant Principals and Other Unit Holders'
Collective Agreement, operational funding can be used to make
payments to teaching staff to develop management structures, recognise
additional responsibilities and allow boards to make extra payments to staff
in recognised priority areas.
Related Link: http://www.nzei.org.nz/teachers_primary_area/pay&conditions.htm
The Components of Operational Funding are as follows:
Base Funding
Base funding addresses the fact that small schools have
different economies of scale than larger schools. Above a set roll size,
schools receive no base funding.
Per-pupil Funding
For most schools, this component forms the bulk of
operational funding. The rates are universal but are set at levels (for
primary schools Y1 Y6, and Y7 - Y8) to reflect the costs of educating pupils
at those levels.
Relief
Teacher Funding
This is funding to assist boards of trustees with the
payment of relief teachers' salaries. It is based on entitlement staffing and
adjusted following the settlement of teachers' collective agreements. It is
also adjusted (automatically) as staffing entitlement changes.
Vandalism
This is paid on a per-pupil rate across five risk
ratings ranging from "low" to "extreme".
Targeted
Funding For Educational Achievement (TFEA)
This is funding aimed at lowering barriers to learning
faced by students from low socio-economic communities. It is targeted on a
decile rating basis. Decile 10 schools receive no TFEA funding.
Special
Education Grant (SEG)
This is funding to assist students with moderate special
educational needs such as learning and behavioural difficulties. It has base
and decile-rated per-pupil subcomponents.
Property Maintenance
This is funding for property maintenance expected over a
ten-year cycle. It is based on land and building areas of each school and
includes (for schools other than integrated schools) a component for minor
capital works.
Heat Light and Water
This funding is assessed on a school-by-school basis and
takes into account factors such as school size and location.
Y7 - Y8 Technology Classes in Other Schools
Funding for capital and related costs associated with
technology classes is included in the per-pupil funding for schools with year
7 and 8 pupils. For schools where pupils attend classes at other (host)
schools, this is to cover per-pupil fees that need to be negotiated with the
host school.
Supplementary Entitlements
Not all schools qualify for all of these funding components.
The Components of the Supplementary Entitlements are as follows:
Māori Language Programme Funding
This funding is to provide additional support for Māori students enrolled in Māori language programmes
at four immersion levels, ranging from level 4 (less than 30% immersion)
through level 1 (above 81% immersion).
School Contents Risk Management
Schools must have all school assets other than land and buildings insured and
have the option of withdrawing from the Ministry's Risk Management Scheme
(for which levy deductions are automatically deducted from quarterly instalments of operational funding) and may gain approval
to adopt an alternative approach in which case the levy deduction are not
made.
Targeted Funding for Isolation (TFI)
This funding is to address the additional costs of accessing the additional
costs faced by schools in isolated areas with respect to accessing goods and
services and takes the form of additional operational funding. It is
calculated using a base grant plus a formula involving an isolation index
rating in association with roll size and a per-pupil grant.
Community Education Funding
This is funding for school/community education initiatives and is mainly
relevant to secondary and areas schools.
Special Education Funding
In Regular Schools
Special education students are counted as part of the total roll and funded
at the appropriate per-pupil rates.
Class Funding In Special Schools
This is funding designed to fund additional classes where the number of
teachers generated by ORRS (see below) is higher than the number of classes
actually funded.
Resource Teachers Learning and
Behaviour (RTLB)
RTLB funding is paid to the nominated school of a cluster: there is a
standard administration grant per position, plus a travel grant (at 4
different rates), year 11 to 13 funding, and learning support funding which
has roll size and decile rating determinants.
Special Education Resource Teachers
These are attachment and travel grants maintained as a transition measure and
are not paid for positions generated by the ORRS scheme.
Special Education Equipment
Students with special needs are eligible for consideration for funding for specialised equipment. Advice is available from
technology co-ordinators, Group Special Education,
Ministry of Education.
Other Special Education Funding
Ongoing and Reviewable Rescourcing Scheme ORRS
This funding meets the employment costs of teacher aides required to meet the
needs of students verified by the Ministry as having very high or high
ongoing needs. It may also cover service purchase costs of specialists such
as psychologists and therapists and administrative and material resource
costs.
High Health Needs
This funding covers care and supervision for students with high health needs
by support staff and is funded on a case-by-case agreement basis.
Enhanced Programme Fund
This funding is for programmes for moderate needs students and will be paid
to schools or clusters of schools with moderate needs students once criteria
and guidelines have been developed.
Attached Teacher Grant
This is funding for base schools to cover development and administrative costs
for attached teachers such as Itinerant Teachers of Music and Resource
Teachers of Maori.
Schools with attached Resource Teachers: Literacy (RTLit) and Supplementary Learning Support teachers
receive administrative grants at the same rate as RTLBs (see above).
Itinerant Teacher Travel
This is funding for officially approved itinerant positions (including RTLit positions): funding relates to distances travelled and
whether the travel is rural or urban.
New Classrooms
This is funding to assist schools to equip new classrooms generated by
increases to roll or staffing entitlement.
Out-of-Hours Music and Art Classes Y1 -
Y8
This funding provides additional professional tuition not normally available
within schools to help students further their education in arts and music.
Normal and Country Model Schools
Additional per-pupil funding is provided to cover costs associated with the
operation of normal and country model schools.
English for Speakers of Other Languages
(ESOL)
ESOL funding provides support for children with English language needs in
mainstream classes and is targeted through small-group and classroom-based
programmes.
When the
Funding is Paid
The main operational funding components are paid quarterly, in advance (as
are a number of other funding components and Supplementary Entitlements).
Other funding components are paid on a different cycle or on a "by
claim" basis.
Planning is underway to bring most, if not all payments into a uniform
funding pattern.
Other Sources of
Information
Ministry of Education Funding, Staffing and Allowances Handbook also available at www.minedu.govt.nz/goto/resourcinghandbook
NZ Schools Trustees Association Trustee Handbook (particularly the
"finance" section with respect to tax issues).
