9. ALLAN PEACHEY (National—Tāmaki) Link to this
to the Minister of Education
What increase did Budget 2010 give to school operational funding?
Hon ANNE TOLLEY (Minister of Education) Link to this
Budget 2010 invested an additional $155.9 million into school operational funding over the next 4 years. This means that despite the Government facing very tight fiscal conditions, we have delivered a 4 percent increase in funding to schools.
I am advised that the 4 percent increase in school operational funding means that for an average primary school there will be an additional $10,700 next year, and for an average secondary school there will be an additional $26,700 next year. That is a substantial cash increase to schools in a very tight fiscal environment.
Hon Trevor Mallard Link to this
In light of the figures she has just given the House on the basis of a 4 percent increase, does she accept with a 5.9 percent inflation that the average secondary school will be $13,000 a year worse off next year?
I understand that part of the 5.9 percent is the one-off spike from the rise in GST, and the underlying inflation is closer to 3 percent. I am also advised that the Ministry of Education receives a cash disbursement for the GST component of operational funding that is passed on to schools. That means when the rate of GST increases, cash payments to schools increase by the same amount as the GST increase, so schools are compensated for the GST rise and they get a 4 percent increase in their operational funding. I am surprised that Mr Mallard does not know that, because he was Minister of Education.
Mr SPEAKERWhat response has the Minister received from the education sector to the increase in operational funding?
I have received a number of responses welcoming the increase. One response from a chairman of a school principals association said that the Government is showing that education is a priority. Another response from a member of the national executive of the New Zealand Educational Institute said that the increase in operations grants was a “biggie” for primary schools in the Budget.