3. Delivering better public services within tight financial constraints
The Government is committed to getting better results from the public services it funds.
Better Public Services results
The Prime Minister has set 10 challenging results for the public service to achieve over the next three to five years, including reducing crime, reducing long-term welfare dependency and reducing educational underachievement.
The Government has already announced one measurable results target and Budget 2012 announces two more. Progress towards these targets will be reported publicly. They are:
- 85 per cent of 18-year-olds having NCEA Level 2 or equivalent in five years - up from 68 per cent
- Increasing the rate of participation in early childhood education to 98 per cent in four years - up from 94.7 per cent, and
- Reducing prisoner reoffending by 25 per cent in five years. Reaching this target would mean 18,500 fewer victims of crime every year.
The other seven results targets will be released by 30 June.
Budget 2012 focuses new spending on frontline services. Much of the new spending is funded by making savings in lower-priority areas of spending.
Budget 2012 includes a number of new initiatives, which are either partly or entirely funded from within current spending:
- Budget 2012 puts an extra $1.5 billion into health services, while ensuring the sector achieves efficiencies and better results from existing services. New spending is focused on frontline services such as faster cancer treatment, more elective surgery and strengthened maternity and disability services.
- Budget 2012 provides $512.3 million for new education initiatives including support for early childhood education to ensure children have a strong platform for learning and to increase participation to 98 per cent. The Budget commits substantial new funding to schools to help lift student achievement, including investing more in improving the quality of teaching and an increase to school operations grants.
- Budget 2012 provides $287.5 million up-front investment in the first phase of the Government's welfare reforms which include a range of initiatives to help more people off welfare into work. This includes $81.5 million of new funding, with the remainder reprioritised from within Vote Social Development. The first stage of the reforms is expected to save $135.5 million as a result of more beneficiaries moving into work.
- The Justice sector (Courts, Police, Corrections, Attorney-General, Justice, Serious Fraud) will meet the costs of new programmes - including preventative policing initiatives, court modernisation, and a programme to reduce reoffending by 25 per cent - from within current budgets.
- Budget 2012 provides $240.3 million for tertiary education initiatives, including higher funding rates for engineering and science degrees, higher rates for private providers, a boost to the Performance-Based Research Fund and 3,000 more fee-free Youth Guarantee places. This is offset by better targeting of student allowances, an increase to the Student Loan repayment rate and repealing the Student Loan voluntary repayment bonus.
- Budget 2012 allocates $104 million for the Social Housing Fund and $23.7 million for other social housing reform and policy expenses. These are funded from Housing New Zealand Corporation operating savings, targeting of the Welcome Home Loans Scheme and reprioritisation in the Weathertight Home Resolution Service.
As part of improving public services and getting better results from the over $70 billion it spends every year, the Government is reprioritising resources to areas that make the most difference. In Budget 2012, $4.42 billion of new priority spending in areas like health, education, law and order, welfare reform and science and innovation is almost completely paid for by savings and revenue initiatives totalling $4.39 billion.
| Vote | 2011/12 | 2012/13 | 2013/14 | 2014/15 | 2015/16 | Total |
|---|---|---|---|---|---|---|
| Health | 0.4 | 381.8 | 359.7 | 356.8 | 358.4 | 1,457.1 |
| Education | 0.4 | 125.1 | 130.0 | 131.2 | 125.6 | 512.3 |
| Social Development including welfare reform) | 0.1 | 82.2 | 91.7 | 80.2 | 79.9 | 334.0 |
| Tertiary Education | 0.0 | 25.0 | 57.0 | 73.4 | 84.9 | 240.3 |
| Science and Innovation | 0.0 | 34.4 | 38.5 | 48.5 | 48.5 | 169.9 |
| Housing | 1.1 | 48.6 | 38.7 | 36.7 | 2.7 | 127.7 |
| Canterbury Earthquake Recovery Authority | 0.0 | 35.6 | 30.8 | 23.6 | 25.1 | 114.9 |
| Revenue | 0.0 | 18.4 | 20.0 | 20.0 | 20.0 | 78.4 |
| New contingencies | 0.0 | 233.9 | 263.4 | 283.4 | 269.1 | 1,049.8 |
| Other | 13.5 | 117.1 | 52.7 | 72.1 | 77.6 | 333.1 |
| Total new initiatives | 15.4 | 1,102.0 | 1,082.4 | 1,125.9 | 1,091.6 | 4,417.3 |
| Vote | 2011/12 | 2012/13 | 2013/14 | 2014/15 | 2015/16 | Total |
|---|---|---|---|---|---|---|
Revenue measures |
0.0 | 177.3 | 292.8 | 405.8 | 485.8 | 1,361.7 |
Student support package |
240.3 | 66.4 | 73.9 | 70.7 | 65.3 | 516.6 |
Welfare package benefit savings |
0.0 | 14.3 | 33.2 | 41.4 | 46.6 | 135.5 |
Housing |
41.1 | 20.5 | 21.5 | 19.5 | 20.5 | 123.1 |
Spending funded from contingencies |
107.7 | 191.0 | 166.1 | 114.9 | 192.1 | 771.8 |
Other reprioritisation/savings |
314.3 | 287.2 | 223.1 | 418.8 | 238.7 | 1,482.1 |
Total savings and revenue |
703.3 | 756.8 | 810.6 | 1,071.1 | 1,049.0 | 4,390.8 |
