Vote Education savings

Details of the Vote Education savings announced by the Government in Budget 2013.

InitiativeDescription
Savings in Early Childhood Education Provisionally Registered Teachers

Operating funding
  • 2013/14 ($3.714m)
  • 2014/15 ($3.714m)
  • 2015/16 ($3.714m)
  • 2016/17 ($3.714m)
Four Year Total ($14.856m)
Funding for this programme is being reallocated into the Service Performance Fund to help strengthen the quality of ECE provision in areas of low participation or with high Māori and Pasifika enrolments. This will directly support education achievement in those areas.
The Provisionally Registered Teacher (PRT) grant was introduced to help services with the costs of supporting their provisionally registered teachers to become fully registered. 
In Budget 2010, changes were made to restrict the PRT grant to services not meeting the 80% teacher registration target as it was agreed that services with 80% or more registered teachers were well placed to provide the required level of professional support.
Over the past decade, the focus of improvements in ECE has been on supporting teacher qualifications and registration. Teacher supply initiatives have been successful, with the proportion of qualified ECE teachers growing and demand (and eligibility) for the grants reducing significantly. The PRT grant is now ceased.
Cease Early Childhood Education National Study Awards

Operating funding
  • 2013/14 ($2.519m)
  • 2014/15 ($3.019m)
  • 2015/16 ($3.019m)
  • 2016/17 ($3.019m)
Four Year Total ($11.576m)
Funding for this programme is being reallocated into the Service Performance Fund to help strengthen the quality of ECE provision in areas of low participation or with high Māori and Pasifika enrolments. This will directly support education achievement in those areas.
The ECE Service Teacher Education Grants (ECESTEG) were put in place to provide support to teachers in study to gain an ECE qualification. This has been successful, with the number of ECE qualified teachers growing significantly since the introduction of the grant and this grant will be ceased on completion of the current round (which closes 10 May).
Cease Early Childhood Education Network Management

Operating funding
  • 2013/14 ($0.356m)
  • 2014/15 ($0.356m)
  • 2015/16 ($0.356m)
  • 2016/17 ($0.356m)
Four Year Total ($1.424m)
This programme has been stopped as a better resourced programme (Service Performance Fund) has been established that incorporates the intent of the Advice and Support Programme.
The purpose of this programme was to improve governance and management processes in community-based ECE services where it was identified that additional support was required.
Cease Pacific Island and Targeted Early Childhood Education Licensing

Operating funding
  • 2013/14 ($0.325m)
  • 2014/15 ($0.325m)
  • 2015/16 ($0.325m)
  • 2016/17 ($0.325m)
Four Year Total ($1.300m)
Funding for this programme is being reallocated into the Service Performance Fund to help strengthen the quality of ECE provision in areas of low participation or with high Māori and Pasifika enrolments. This will directly support education achievement in those areas.
This fund provided support to contract specialised providers to support the ECE licensing processes in immersion or bilingual ECE services, where the in-house expertise required is not available. This fund has been discontinued because the current Ministry practice is to use departmental spending to contract in specialist licensing staff required for immersion or bilingual ECE services. No bilingual or immersion ECE services will experience any change as a result of the decision to discontinue this funding.
Savings in Licence Exempt Early Childhood Education (Playgroups)

Operating funding
  • 2013/14 ($0.186m)
  • 2014/15 ($0.186m)
  • 2015/16 ($0.186m)
  • 2016/17 ($0.186m)
Four Year Total ($0.744m)
Certified playgroups are established and facilitated by the parents/caregivers of the children attending the playgroup. They have fewer regulatory requirements than licensed ECE services. This initiative funds both playgroup operational funding and discretionary special grants, which are available to playgroups for large one-off expenses that cannot be funded through operational funding. This programme is demand-driven. The operational funding paid to playgroups per child per hour is low ($1.47). We are reducing the appropriation by 5% ($0.186 million per annum). There has been a consistent underspend over past years and the reduction reflects this.
TeachNZ Scholarships

Operating funding
  • 2012/13 ($7.116m)
  • 2013/14 ($8.004m)
  • 2014/15 ($5.966m)
  • 2015/16 ($7.713m)
  • 2016/17 ($8.681m)
Four Year Total ($30.364m)
Voluntary Bonding

Higher retention rates in the teaching workforce mean the number of vacancies available for new graduates has been reducing and areas of shortage are now largely limited to Māori medium or te reo Māori, plus some areas of early childhood education.
The Ministry Voluntary Bonding programme provides payments to new teachers who have full time roles in low decile or isolated schools, or teachers in subjects identified as an area of teacher shortage.  Uptake of the Voluntary Bonding scheme has significantly reduced so savings are expected.

Pre 2005 TeachNZ scholarships

Between 1998 and 2005, TeachNZ offered scholarships to complete a teaching qualification and teach in particular eligible schools.  No completion date was placed on this scheme and no final date for payment.
Funding for these scholarships has been under spent as there are only a small number of teachers who remain eligible for their second or third payment. While numbers are uncertain, any remaining teachers likely to anticipate payment are expected to number less than 100.
We will make  those payments to teachers who are eligible but no longer need current levels of funding as the number of remaining teachers is so small (we paid only $50,000 for these scholarships in 2012).
Ongoing funding has therefore been stopped, however payments will still be made through central contingency if an unexpected number of eligible teachers come forward.
TeachNZ Scholarships

Operating funding
  • 2012/13 ($4.102m)
  • 2013/14 ($6.232m)
  • 2014/15 ($7.116m)
  • 2015/16 ($7.913m)
  • 2016/17 ($7.656m)
Four Year Total ($28.917m) (Savings from Vote Social Development)
Over the last three years the teacher supply environment has changed significantly, with teacher vacancies and losses falling to a ten-year low and remaining down. New teachers report that it is increasingly difficult to find work and this situation has attracted considerable media attention. We forecast that this situation is unlikely to change significantly over the next five years.  Current TeachNZ scholarships provide an incentive to train as a school teacher in shortage subjects and to help meet the qualified teacher targets for early childhood education.
The number of TeachNZ scholarships for 2013 were reduced to 435. 
Savings in Special Education School Transport Assistance

Operating funding
  • 2012/13 ($4.147m)
  • 2013/14 ($8.000m)
  • 2014/15 ($8.000m)
  • 2015/16 ($8.000m)
  • 2016/17 ($8.000m)
Four Year Total ($32.000m)
The 2012 tender was significantly more competitive than previous tenders with bus companies, in particular, seeking a share of the SESTA business. The increased competitiveness of the tender resulted in a significant cost reduction.
Savings in Laptops for Teachers Scheme

Operating funding
  • 2013/14 ($3.000m)
  • 2014/15 ($3.000m)
  • 2015/16 ($3.000m)
  • 2016/17 ($3.000m)
Four Year Total ($12.000m)
The purpose of the TELA Laptop Scheme is to provide fully and partially subsidised leased laptops for eligible principals and teachers in state and state-integrated schools. No change will be made to the Scheme or the services available to schools. Laptops are manufactured overseas and savings are available in years where the exchange rate is favourable. The declining cost of manufacture and efficient management has also contributed to savings.
Changes to Recruitment Allowances and Fees

Operating funding
  • 2013/14 ($2.190m)
  • 2014/15 ($3.190m)
  • 2015/16 ($3.190m)
  • 2016/17 ($3.190m)
Four Year Total ($11.760m)
These grants and allowances were established to address issues in an under-supply environment. However, over the last three years the situation has changed and there is a ready supply of teachers overall with many new graduates unable to find work.  Overseas teacher recruitment no longer receives financial support from the Ministry, as we are focused on ensuring that priority is given to the employment of New Zealand teachers. The Ministry will disestablish support for international recruitment, removing the International Relocation Grant and Finders Fee. A significant notice period will be in place so that schools and teachers already in the recruitment process are not disadvantaged
Cease Student Engagement Initiative

Operating funding
  • 2013/14 ($1.460m)
  • 2014/15 ($1.460m)
  • 2015/16 ($1.460m)
  • 2016/17 ($1.460m)
Four Year Total ($5.840m)
The programme has been discontinued as other initiatives are addressing the needs that were part of the SEI initiatives, including Positive Behaviour for Learning. The Student Engagement Initiative (SEI) was established in 2000 with the aim of reducing truancy rates, suspensions and early leaving exemptions.
Transition to He Ara Tika Mentoring Programme

Operating funding
  • 2013/14 ($0.724m)
  • 2014/15 ($1.449m)
  • 2015/16 ($1.449m)
  • 2016/17 ($1.449m)
Four Year Total ($5.071m)
The funding from this initiative will be transitioned into a new mentoring initiative from 2014 more directly linking to NCEA level two targets for the Ministry priority groups; Māori, Pasifika, those with special education needs, and those from lower socio-economic backgrounds.
He Ara Tika is a mentoring initiative that focuses on building the self-esteem and cultural identity of Māori secondary school students. A community based initiative; it aims to increase the participation and achievement of Māori secondary school students in education by encouraging and supporting them to stay at school and to develop tertiary educational pathways and/or career options.
Savings in Teacher Travel, Transfer and Removal

Operating funding
  • 2013/14 ($1.000m)
  • 2014/15 ($1.000m)
  • 2015/16 ($1.000m)
  • 2016/17 ($1.000m)
Four Year Total ($4.000m)
This funding assists teachers with the costs of travel, transfer and removal and is designed to support schools in the recruitment of teachers and principals. The drop in teaching vacancies and centralised contracts with moving companies has reduced the cost of this initiative.
Cease Project Early

Operating funding
  • 2012/13 ($0.090m)
  • 2013/14 ($0.090m)
  • 2014/15 ($0.090m)
  • 2015/16 ($0.090m)
  • 2016/17 ($0.090m)
Four Year Total ($0.360m)
Project Early was an early intervention programme designed to assist at-risk 3-8 year old children presenting with behavioural difficulties in both early childhood education centres and primary schools.  As part of the service, case managers were appointed to work with children and their parents/caregivers and teachers to develop strategies to improve behaviour and enable a smooth transition from early childhood centres to a primary school setting. The programme was discontinued in 2009 following a review and evaluation of the service provided. Project Early offered services that were the same/similar to those provided under the Positive Behaviour for Learning Framework including.
Cease Digital Opportunities

Operating funding
  • 2013/14 ($0.054m)
  • 2014/15 ($0.054m)
  • 2015/16 ($0.054m)
  • 2016/17 ($0.054m)
Four Year Total ($0.216m)
The Digi Ops programme concluded in the 2009/2010 year however a small number of projects extended into the 2010/2011 year resulting in departmental costs of $50,160 in that year. In 2009/2010 the Crown funding of $54,000 was spent on coordination and research until the end of the project. In 2010/11 it was not required for the Digi Ops programme and was used to offset a software licensing overspend.  In 2011/12 it was unspent and returned to the Crown. In 2012/2013 the funding has been committed to ICT projects.
Short-term Savings in School Property – Treaty Settlements

Operating funding
  • 2013/14 ($14.600m)
  • 2014/15 ($12.600m)
  • 2015/16 ($10.600m)
  • 2016/17 ($8.600m)
Four Year Total ($46.400m)
While out year demand will meet and ultimately exceed previous appropriations, current projections for the negotiation process indicate that a series of short-term savings can be recognised without jeopardising the Government’s Treaty settlement programme.  Savings to the value of $46.400 million have been booked for the upcoming four-year period.
The Ministry of Education has been involved in the Government’s Treaty settlement programme since the early 2000s. School sites (land only) have been included as redress under the right of first refusal, sale and lease-back, and deferred sale and lease-back mechanisms. Recent baseline appropriations assumed a significantly higher number of Treaty claims would have been settled by now (with the associated sale and lease-back school sites transferred in each settlement); however, the Office of Treaty Settlement led negotiation process and subsequent passing of legislation required to effect the settlements has taken longer than originally anticipated.
Savings in School Property Maintenance Expenses (Vandalism)

Operating funding
  • 2012/13 ($1.100m)
  • 2013/14 ($1.100m)
  • 2014/15 ($1.100m)
  • 2015/16 ($1.100m)
  • 2016/17 ($1.100m)
Four Year Total ($4.400m)
Topping up schools’ vandalism-related maintenance expenditure totals $2.8m per year. The funding is provided to schools that incur vandalism remediation costs in excess of their operating grant entitlement. The funds are released only if applied for and are not provided automatically to schools. There has been a pattern of consistent underspending in this area, and we have reduced the funding available to reflect historical demand.
Savings in Interest Subsidy for Schools

Operating funding
  • 2012/13 ($0.201m)
  • 2013/14 ($0.120m)
  • 2014/15 ($0.120m)
  • 2015/16 ($0.120m)
  • 2016/17 ($0.120m)
Four Year Total ($0.480m)
The budget lines exist as a legacy arrangement to support a loan subsidy to proprietors of integrated schools for debts incurred before their integration. The debts in question were necessary to pay for work to bring the schools up to a comparable state standard before integration. The forward estimate for this appropriation is based on anticipated demand for the subsidy, noting that there is a downward trend as debt is progressively being retired. The current low interest rate environment also serves to keep the subsidy low.

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