Education: $1.68b but future cuts

Schools will get more cash to cover day-to-day costs, help combat truancy and disruptive students and improve literacy and numeracy skills.

New schools will be built and more children will be eligible for the 20-hour early childhood education subsidy.

But the education sector has been put on notice that spending will drop during the next few years. By 2013, spending is forecast to fall by about $300 million.

The Government allocated $1.68billion to improve front-line education in the next four years. More than $660m was funded by reprioritising spending by the previous government, including keeping the current ratio of adults to children in early childhood education centres, rather than proceeding with a planned reduction, resulting in a saving of $275m.

About $520m will be spent on building, expanding and upgrading schools. Construction of five new schools Mt Wellington Primary, Papamoa Primary, Kerikeri Primary, Hingaia Primary and Papamoa Secondary will start by April.

From July next year, five-year-olds and children at playcentres and kohanga reo will be eligible for 20 hours early childhood education. A year later, the six-hour daily limit will be removed.

It is estimated about 8200 children will benefit from the removal of the limit and an extra 1100 five- and six-year-olds will attend services that qualify for the 20-hour subsidy. For teachers, $169m is being allocated this year for pay rises. A further $70m over four years is for salary increases for caretakers, cleaners and ground staff.

Schools also get a $34m boost for high-speed broadband. About 80 per cent of schools will have access to a government subsidy to upgrade their networks.

The principal of Wellington's Island Bay School, Perry Rush, said it would have been nice to get a bigger slice of the pie. The money was not enough to finance the full running costs of schools.

"Schools' operation budgets are very stretched and they need a lot more than they get. Many are relying on selling cakes and raffles to make ends meet."

He was pleased with the broadband initiative, but would have liked more for IT. "The greatest stress is paying for computers and interactive whiteboards. Those sorts of things depreciate quickly and cost schools heaps of money."

NATIONAL AXES SCHOLARSHIPS

Tertiary scholarships worth $98 million that helped poor students and bonded others to stay in New Zealand have been axed.

At the same time, the total tertiary education budget went from $2.66 billion to $2.78b.

The bonded merit scheme helped pay fees of about 1000 students in areas where there were skill shortages, in exchange for them staying in New Zealand for an agreed term after graduating. It was cut in yesterday's Budget, along with Step Up scholarships for low-income earners and "top achiever" scholarships.

Students already in the programmes are not affected.

National also axed increases to industry training funds and some training programmes.

MAIN POINTS

$523m over four years to build, expand and upgrade schools. $169m in 2009-10 for teachers' pay increases.

$80m for day-to-day school operations. $70m over four years for early childhood education. $36m to improve literacy and numeracy.

- © Fairfax NZ News