Vote Education - Education and Workforce Sector - Estimates 2018/19

Vote Education#

APPROPRIATION MINISTER(S): Minister of Education (M26)

APPROPRIATION ADMINISTRATOR: Ministry of Education

RESPONSIBLE MINISTER FOR MINISTRY OF EDUCATION: Minister of Education

Overview of the Vote#

The Minister of Education is responsible for appropriations in Vote Education for the 2018/19 financial year covering the following:

• a total of just over $2,397 million for services from the Ministry of Education (depreciation and capital charge on school accommodation and learning support services being the most significant costs)

• a total of just over $1,111 million for capital expenditure by the Ministry of Education, mainly related to school sector property

• a total of over $538 million for educational services from the New Zealand Qualifications Authority, Network for Learning, Education Council of Aotearoa New Zealand and other non-departmental providers. The most significant costs are for professional development in the school and early childhood education sectors and school transport services

• a total of nearly $42 million for allowances, scholarships and awards for students, teachers and trainees

• a total of nearly $8,129 million for educational services from schools (including teacher salaries), early childhood education providers and other education providers, and

• a total of just over $43 million for capital expenditure for Crown entities and schools.

The Minister of Education is also responsible for a capital injection to the Ministry of Education of just over $313 million.

Details of these appropriations are set out in Parts 2-4.

Details of Appropriations and Capital Injections#

Annual and Permanent Appropriations#

Multi-Year Appropriations#

Total Annual and Permanent Appropriations and Multi-Year Appropriation Forecasts#

Capital Injection Authorisations#

Supporting Information#

Part 1 - Vote as a Whole#

1.1 - New Policy Initiatives

1.2 - Trends in the Vote#

Summary of Financial Activity#

Note - where restructuring of the vote has occurred then, to the extent practicable, prior years information has been restated as if the restructuring had occurred before the beginning of the period covered. In this instance Total Appropriations for the Budgeted and Estimated Actual year may not equal Total Appropriations in the Details of Appropriations and Capital Injections.

Adjustments to the Summary of Financial Activity Table Due to Vote Restructuring#

The prior year information in the Summary of Financial Activity table has been restated to reflect the current Vote structure.

1.3 - Analysis of Significant Trends#

Significant changes in departmental and non-departmental appropriations related to early childhood education and schooling between 2013/14 and 2021/22 are discussed briefly below.

Departmental Expenditure

The largest component of departmental output expenditure relates to the provision of school land and buildings, including capital charge, depreciation, and continuation of Public Private Partnership. The major changes here relate to movements in the value of the property portfolio after additional government investment in schools, the annual revaluation of the portfolio (including impairment of assets) and property disposals. In 2016/17, the capital charge rate was reduced from 8% to 7% from 1 July 2016 and to 6% from 1 January 2017.

Other significant changes to departmental funding include:

• increased provision for services for students with learning support needs, including provision for teachers' aides, and additional in-class support, provision for intensive wraparound services, adjustments to funding levels for the Ongoing Resourcing Scheme and School High Health Needs Fund (both for price and volume changes) and settlements of related collective agreements. This is partly offset by a transfer of some Ongoing Resourcing Scheme funding to the Learning Support non-departmental output expense category under Outcomes for Target Student Groups MCA where it is managed by other providers

• support for Youth Mental Health initiatives and other initiatives like assessments for vulnerable children and achievement and investment management

• development of new education schools payroll systems and subsequent enhancements for managing technology risks and increasing efficiency along with related advisory services, as well as remediating Novopay, development of other systems, such as Education Sector identity and Access Management, the Early Learning Information System and an education-wide funding system

• support for ultra-fast broadband in schools, including the implementation of the School Network Upgrade Project and initiatives to support the implementation of a managed network for all schools

• supporting the implementation of Youth Guarantee initiatives

• support for the design and delivery of curriculum resources for students and teachers in Maori language in education provision, in particular Maori-medium education

• support for the implementation of Communities of Learning from 2014/15 and peaking in 2017/18 and 2018/19

• provision for the Integrated Education Data (iEd) Programme, a system-wide information management programme to make education data accessible to inform decision-making by learners, various education stakeholders and government

• provision of demand-driven services provided to other public service agencies on a cost recovery basis

• provision for the cost of establishing, designing, and implementing required changes to ensure that the schools payroll service is compliant with Holidays Act 2003 legislation, and

• supporting the implementation of changes in the Education Act 1989 to deliver increased student achievement.

Departmental output expense appropriations Interventions for Target Student Groups and Support and Resources for Teachers were moved to multi-category appropriations from 2016/17 and Stewardship of the Education System and Policy Advice were moved to another multi-category appropriation from 2017/18.

Departmental Capital Expenditure

Most capital expenditure for the Ministry of Education relates to the state school property portfolio, either through school projects or projects managed by the Ministry. Movements between years mainly relate to factors such as site purchases and the timing of new schools' roll growth and redevelopment projects. There is also increased focus on expenditure in Christchurch to reflect demographic change or remediate damage from the 2010 and 2011 earthquakes. Also included is expenditure on broadband initiatives as well as the development of information systems.

Capital Injections

Additional capital provided to the Ministry over the periods mainly relates to the construction of new schools and additional classrooms required for roll growth, as well as repairing or replacing buildings damaged by the Christchurch earthquakes.

In addition, there has been investment in broadband for schools and school network upgrades, as well as new systems, including the Early Learning Information System and Education Resourcing System.

Non-Departmental Outputs

From 2018/19, most non-departmental other expense appropriations and categories under multi-category appropriations were reclassified as non-departmental output expenses, including Early Childhood Education, Primary Education, Secondary Education, and Learning Support. A new multi-category appropriation called Oversight and Administration of the Qualifications System MCA has been created from 2018/19 comprising the functions and activities of the New Zealand Qualifications Authority (NZQA). The non-departmental output expenses Quality Assurance, Qualifications Support Structures, Secondary School Assessments and part of Provision of Information and Advisory Services (disestablished), along with other expense Remission of Fees, have been combined under this MCA (see Part 1.4 Reconciliation of Changes in Appropriation Structure below for more details).

Changes in non-departmental output expenses are principally owing to a combination of:

• roll-related increases in early childhood education sessional payments, as well as revised funding rates and increased provision for equity funding

• roll-related increases in funding for schooling, including teacher salaries, as well as provision for improved operations funding rates for schools

• the impact of wage settlements for teachers and principals (including the flow-on of these costs to the early childhood education sector), as well as changes to ACC rates and superannuation subsidies

• establishment of partnership schools from 2013/14

• support for the purchase of services from the provider of a managed network for schools since 2013/14

• increasing early childhood education participation through providing prioritised support, a retention programme for Maori-medium beginning teachers, and improving school governance through increased support for boards of trustees from 2013/14

• other initiatives in the schooling sector, including provision for English for Speakers of Other Languages, and Youth Guarantee services, with reallocations from Youth Guarantee funding (in Vote Tertiary Education) for additional Trades Academy places

• support for the implementation of Communities of Learning from 2015

• steady growth in the cost of school transport services, partly offset by efficiency savings identified in 2015/16 and 2016/17

• transfer of Ongoing Resourcing Scheme funding managed by third party providers to Learning Support from departmental output category Interventions for Target Student Groups from 2015/16

• support for the Education Council of Aotearoa New Zealand from 2015/16 to deliver its new functions under the Education Amendment Act 2015 and provision for Council practicing certificate fees as part of the settlement of various Teachers' and Principals' Collective Agreements

• impact of reprioritisation decisions and other efficiencies including improving the cost-effectiveness of professional learning and development (PLD) from 2016/17

• provision for the Home Interaction Programme for Parents and Youngsters moved from Vote Social Development from 2016/17

• transfer of career services functions to Vote Tertiary Education (Tertiary Education Commission) from 2017/18, and

• provision for a Teacher-Led Innovation Fund from 2015/16 to 2019/20.

Non-departmental output expense appropriations Professional Development and Support, Curriculum Support, Students Attendance and Engagement, and Service Academies were moved to multi-category appropriations from 2016/17. Education Research Initiatives and the Independent Advice on Government Priority Area component of the Provision of Information and Advisory Services appropriation also moved to a multi-category appropriation from 2017/18.

Benefits or Related Expenses

Significant changes in benefit expenses mainly relate to:

• full implementation of Boarding Allowances and Puawaitanga Scholarships changes from 2014/15

• provision for Teach First New Zealand employment-based training programme, partly offset by some reprioritisation, and

• reductions in the provision for National Study Awards for the schooling and early childhood education sectors through a combination of reprioritisation and to better reflect actual demand, partly offset by increases in the number of awards available as a result of settlements of collective agreements.

Non-Departmental Other Expenses

Non-departmental other expenses comprised the majority of funding in Vote Education until 2018/19 when most of these appropriations or categories under multi-category appropriations were reclassified as non-departmental output expenses, including Early Childhood Education, Primary Education, Secondary Education, and Learning Support. Discussion of changes to baselines under these appropriations over the forecast period is therefore reflected under non-departmental output expenses above.

Of the remaining other expense appropriations the major changes relate to:

• provision for increased property grants due to changes in integrated school rolls and impact on funding integrated schools from the funding model linked to the movement in the value of the State school property portfolio

• provision for occasional impairment and balance sheet adjustments

• contributions to the cost of new State-integrated schools or additional classrooms, and

• recognition of impact of past education policy changes on property-related costs at State-integrated schools, as well as provision for seismic strengthening of buildings in greater Christchurch.

Non-Departmental Capital Expenditure

The major changes in non-departmental capital expenditure over the period relate to provision for furniture and equipment for new school buildings, including funding for broadband initiatives and school network upgrades. Other significant changes include:

• provision of working capital for Network for Learning Ltd between 2012/13 and 2014/15

• ceasing incentives for the disposal of surplus properties after 2014/15, and

• a transfer of assets to Education Payroll Ltd, as well as provision of working capital in 2014/15 and a loan for the sustainability of the payroll in 2017/18 and 2018/19.

1.4 - Reconciliation of Changes in Appropriation Structure#

After a review of Vote Education, a range of changes to appropriations have been implemented from 2018/19 as follows:

Note 1 - A new multi-category appropriation called Oversight and Administration of the Qualifications System MCA has been created from 2018/19 comprising the functions and activities of the New Zealand Qualifications Authority (NZQA). The non-departmental output expenses Quality Assurance, Qualifications Support Structures, Secondary School Assessments and part of Provision of Information and Advisory Services, along with other expense Remission of Fees, have been combined under this MCA.

The Provision of Information and Advisory Services appropriation, reduced significantly from 2017/18 with the transfer of Careers New Zealand functions to the Tertiary Education Commission (Vote Tertiary Education) and the movement of NZQA funding to the new MCA above from 2018/19, has been disestablished and the remaining components transferred to other non-departmental output expense appropriations or categories including Early Childhood Education, Learning Support (Outcomes for Target Student Groups MCA), Curriculum Support (Improved Quality Teaching and Learning MCA), Schooling Improvement, as well as departmental output expense Monitoring the Education System (Oversight of the Education System MCA).

Note 2 - Most non-departmental other expense appropriations have been reclassified as non-departmental output expenses from 2018/19 including Early Childhood Education, Primary Education, Schooling Improvement, Secondary Education, Support for Early Childhood Education Providers, and UNESCO.

Note 3 - Benefits or Related Expenses appropriations covering scholarships and awards for students and scholarships and awards for teachers and teacher trainees have been consolidated under two new appropriations, Scholarships and Awards for Students and Scholarships and Awards for Teachers and Trainees.

Explanations of the reasons for changing the appropriation structure are noted in the details of each appropriation in Parts 2-4.

1.5 - Relationship between Individual Appropriations and the Work Programmes#

Part 2 - Details of Departmental Appropriations#

2.1 - Departmental Output Expenses#

School Property Portfolio Management (M26)

Scope of Appropriation

Expenses and Revenue

Components of the Appropriation

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve a school sector property infrastructure that ensures a fit-for-purpose learning environment.

How Performance will be Assessed and End of Year Reporting Requirements

Note 1 - The Asset Management maturity index scale is 0-20% Aware, 20-40% Minimum, 40-60% Core, 60-80% Intermediate and 80-100% Advanced on the index criteria established by the Treasury, where Lower Advanced means 80-90% on that scale.

Note 2 - Utilisation is expressed as the ratio of the number of classrooms a school is entitled to relative to its actual number of classrooms at the school. Classroom entitlement is calculated based on maximum roll figures, school types, Maori immersion rolls, special needs and technology aspects of the school. This measure covers about 70% of State schools in total and excludes schools with 100 or fewer students and schools which are less than 10 years old. Schools with enrolments of 100 students or fewer are excluded because small variations in enrolments will result in major changes in utilisation, and new schools are excluded because they would have been built in anticipation of future need for increased space.

Note 3 - The functionality measure is based on property-related elements of Innovative Learning Environment (ILE) assessments conducted by accredited assessors at the time each school prepares its 10-year property plan (10YPP). This measure is only available for a subset of schools at present (covering about 60% of State school buildings) but will be progressively applied across all schools as part of the property planning cycle. The functionality of buildings is scored on a nominal scale of 1 to 5 (1 being the highest functionality rating) based on the extent to which the building is assessed as being compliant (0%, 50% or 100%) with requirements for Designing Quality Learning Space (DQLS), Health and Hygiene (H&H) and Flexible Learning Spaces (FLS). A rating of 1 applies to buildings which comply with DQLS, H&H and FLS criteria. A rating of 2 applies to buildings which score 100% for both DQLS and H&H criteria. A rating of 3 applies to buildings which have either a score of at least 50% for both DQLS and H&H criteria or 100% for one of these criteria. A rating of 4 applies to buildings which score 50% for one of DQLS and H&H criteria. A rating of 5 applies to buildings which score 0% for both DQLS and H&H criteria.

Note 4 - The maintenance index is based on a nationwide physical inspection of school buildings. It is the ratio of each building's forward 10-year cost for maintaining the building to current standards relative to its replacement cost. The higher the ratio, the greater the degree of maintenance required. All other things being equal, a building with a higher ratio will tend to indicate poorer condition than a building with a lower ratio. This measure represents over 95% of total replacement value and about 70% of the number of buildings in the entire State school portfolio, excluding about 10,000 minor buildings such as sheds and covered walkways. For reporting purposes, building indices are shown on a scale from 1 to 5 (1 being the highest rating), defined as follows: 1 is an index of less than 5%, 2 is 5-10%, 3 is 10-20%, 4 is 20-30% and 5 is over 30%.

End of Year Performance Reporting

Performance information for this appropriation will be reported by the Ministry of Education in its annual report.

Current and Past Policy Initiatives

Reasons for Change in Appropriation

The $31.847 million increase in this appropriation for 2018/19 is mainly due to a combination of:

• capital charge and depreciation related to new schools and additional classrooms ($19.463 million increase)

• continuation of the Christchurch Schools Rebuild programme ($10.573 million increase)

• continuation of the New Zealand Schools Public Private Partnership programme ($10.016 million increase)

• reduced savings in capital charge expense following the decrease in rate from 8% to 6% in 2016/17 ($8.946 million increase)

• support for infrastructure service delivery due to declining baselines ($8.600 million increase)

• utilisation of revenues from successful legal claims to cover costs associated with weather-tightness issues in schools in 2017/18 ($10.340 million decrease)

• increased property portfolio management activity funded by revenue from the sale of property in 2017/18 ($9.286 million decrease)

• increased provision for rental arrangements where building construction solutions are not available or are uneconomic in 2017/18 ($3.500 million decrease), and

• rationalisation of school buildings transferred from 2016/17 to 2017/18 ($1.400 million decrease).

Services to Other Agencies RDA (M26)#

Scope of Appropriation#

Expenses and Revenue#

What is Intended to be Achieved with this Appropriation#

This appropriation is intended to provide support services to government departments and other government or education agencies, on a cost-recovery basis, including office accommodation and related services, and information technology management and development services.

How Performance will be Assessed and End of Year Reporting Requirements#

Note 1 - The reported percentage is the lowest level of achievement across all service level agreements. The service standards and measures are outlined in the Information Communications and Technology - Business Services Catalogue.

End of Year Performance Reporting#

Performance information for this appropriation will be reported by the Ministry of Education in its annual report.

Support and Resources for Education Providers (M26)#

Scope of Appropriation#

Expenses and Revenue#

Components of the Appropriation#

What is Intended to be Achieved with this Appropriation#

This appropriation is intended to achieve effective management and monitoring of services provided to the education sector that allows it to focus on educational success.

How Performance will be Assessed and End of Year Reporting Requirements#

Note 1 - Part 7A of the Education Act 1989 allows the Minister of Education or the Secretary for Education (or their delegates) to put in place a statutory intervention in a State or State-integrated school. The Minister must have reasonable grounds to believe that the operation of the school, or the welfare or educational performance of its students, is at risk.

End of Year Performance Reporting#

Performance information for this appropriation will be reported by the Ministry of Education in its annual report.

Current and Past Policy Initiatives#

Reasons for Change in Appropriation#

The $3.269 million increase in this appropriation for 2018/19 is mainly due to a combination of:

• strengthening frontline service delivery to support student achievement ($4.460 million increase), and

• transfer from 2016/17 to 2017/18 for the project to ensure that the schools payroll service complies with Holidays Act legislation ($956,000 decrease).

Support and Resources for Parents and the Community (M26)#

Scope of Appropriation#

Expenses and Revenue#

What is Intended to be Achieved with this Appropriation#

This appropriation is intended to provide targeted information and support focused on creating informed demand and engagement by families and communities in education, and improving their ability to support their children's learning.

How Performance will be Assessed and End of Year Reporting Requirements#

Note 1 - As measured by the percentage of participants who showed a 'positive' or higher rating in initiative evaluation surveys, using a five-point scale where 4 is deemed 'positive'.

End of Year Performance Reporting#

Performance information for this appropriation will be reported by the Ministry of Education in its annual report.

Current and Past Policy Initiatives#

Reasons for Change in Appropriation#

The $543,000 decrease in this appropriation for 2018/19 is due mainly due to a transfer in 2017/18 for continuation of the corporate transformation programme ($550,000).

2.3 - Departmental Capital Expenditure and Capital Injections#

Ministry of Education - Capital Expenditure PLA (M26)#

Scope of Appropriation

Capital Expenditure

What is Intended to be Achieved with this Appropriation

This appropriation is intended to provide strategic assets, including the renewal and replacement of life-expired assets, in support of the delivery of the Ministry of Education's services and responsibilities for schools.

How Performance will be Assessed and End of Year Reporting Requirements

Note 1 - Utilisation is expressed as the ratio of the number of classrooms a school is entitled to relative to its actual number of classrooms at the school. Classroom entitlement is calculated based on maximum roll figures, school types, Maori immersion rolls, special needs and technology aspects of the school. This measure covers about 70% of State schools in total, and excludes schools with 100 or fewer students and schools which are less than 10 years old. Schools with enrolments of 100 students or fewer are excluded because small variations in enrolments will result in major changes in utilisation, and new schools are excluded because they would have been built in anticipation of future need for increased space.

Note 2 - The functionality measure is based on property-related elements of Innovative Learning Environment (ILE) assessments conducted by accredited assessors at the time each school prepares its 10-year property plan (10YPP). This measure is only available for a subset of schools at present (covering about 60% of State school buildings) but will be progressively applied across all schools as part of the property planning cycle. The functionality of buildings is scored on a nominal scale of 1 to 5 (1 being the highest functionality rating) based on the extent to which the building is assessed as being compliant (0%, 50% or 100%) with requirements for Designing Quality Learning Space (DQLS), Health and Hygiene (H&H) and Flexible Learning Spaces (FLS). A rating of 1 applies to buildings which comply with DQLS, H&H and FLS criteria. A rating of 2 applies to buildings which score 100% for both DQLS and H&H criteria. A rating of 3 applies to buildings which have either a score of at least 50% for both DQLS and H&H criteria or 100% for one of these criteria. A rating of 4 applies to buildings which score 50% for one of DQLS and H&H criteria. A rating of 5 applies to buildings which score 0% for both DQLS and H&H criteria.

Note 3 - The maintenance index is based on a nationwide physical inspection of school buildings. It is the ratio of each building's forward 10-year cost for maintaining the building to current standards relative to its replacement cost. The higher the ratio, the greater the degree of maintenance required. All other things being equal, a building with a higher ratio will tend to indicate poorer condition than a building with a lower ratio. This measure represents over 95% of total replacement value and about 70% of the number of buildings in the entire State school portfolio, excluding about 10,000 minor buildings such as sheds and covered walkways. For reporting purposes, building indices are shown on a scale from 1 to 5 (1 being the highest rating), defined as follows: 1 is an index of less than 5%, 2 is 5-10%, 3 is 10-20%, 4 is 20-30% and 5 is over 30%.

End of Year Performance Reporting

Performance information for this appropriation will be reported by the Ministry of Education in its annual report.

Reasons for Change in Appropriation

The $88.168 million increase in this appropriation for 2018/19 is due to a combination of:

• additional spend on school redevelopments, new schools and roll growth ($135.572 million increase)

• additional investment in Information and Communications Technology in line with progress of projects ($3.886 million increase)

• fit-out of office accommodation ($2.515 million increase)

• completion of the Third New Zealand Schools Public Private Partnership undertaken in 2017/18 ($40.077 million decrease), and

• fewer land acquisitions in line with the number of new schools later in the forecast period ($13.728 million decrease).

Capital Injections and Movements in Departmental Net Assets

Ministry of Education

Part 3 - Details of Non-Departmental Appropriations#

3.1 - Non-Departmental Output Expenses#

Contribution to the Education Council of Aotearoa New Zealand (M26)

Scope of Appropriation

Expenses

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve effective professional leadership, investment in teacher professional capability, support and administration of the education profession across the early childhood and schooling sectors, and support for activities directed at raising the status of the teaching profession.

How Performance will be Assessed and End of Year Reporting Requirements

Note 1 - Standards are set and maintained through the Code of Responsibility and Standards for the Teaching Profession. This measure demonstrates that decision-making, using the Code and Standards, is robust, as confirmed through the audit and moderation process.

The following information from the Education Council Annual Report 2017 for the 2016/17 financial year is provided as a reference for context only:

• 5,000 new teacher registrations
• 101,000 teachers with current practising certificates
• 591 teachers (0.6%) had complaints and mandatory reports made about them (see Note 1)
• 370 teachers (0.4%) had conditions placed on their practising certificates (see Note 1)
• 28 teacher registrations cancelled (0.02%) (see Note 1).

Note 1 - Expressed as a percentage of the number of teachers with current practising certificates.

End of Year Performance Reporting

Performance information for this appropriation will be reported by the Minister of Education in a report appended to the Ministry of Education's annual report.

Service Providers

Current and Past Policy Initiatives

Early Childhood Education (M26)#

Scope of Appropriation#

Expenses#

Components of the Appropriation#

Comparators for Restructured Appropriation#

What is Intended to be Achieved with this Appropriation#

This appropriation is intended to achieve access to early childhood education for all young children.

How Performance will be Assessed and End of Year Reporting Requirements#

Note 1 - Services not meeting standards are put on a provisional or suspended licence and an improvement plan is implemented. Licences are cancelled if improvements are not complied with within a maximum of 12 months.

The following information is an indication of expected numbers and is provided for context only.

End of Year Performance Reporting#

Performance information for this appropriation will be reported by the Minister of Education in a report appended to the Ministry of Education's annual report.

Service Providers#

Current and Past Policy Initiatives#

Reasons for Change in Appropriation#

This appropriation has been reclassified from non-departmental other expense from 2018/19 and now includes an element of a disestablished appropriation as shown in the Comparators for Restructured Appropriation table above. The reorganisation of appropriations for 2018/19 is also set out in Part 1.4 - Reconciliation of Changes in Appropriation Structure.

The $103.643 million increase in this appropriation for 2018/19 compared to the equivalent appropriation in 2017/18 is mainly due to:

• volume growth driven mainly by increased immigration, higher-than-expected birth rates and the success of initiatives to improve awareness and engagement of families in early childhood education services ($79.531 million increase)

• changes in the mix of expenditure between service types, subsidy types and age of children ($17.154 million increase)

• full-year effect of Budget 2017 targeted funding for disadvantaged children ($5 million increase)

• transfer from non-departmental output expense Provision of Information and Advisory Services for Te Kohanga Reo National Trust ($2.560 million increase), and

• improvements to the implementation of Communities of Learning | Kahui Ako in 2018 ($1.270 million increase).

Conditions on Use of Appropriation#

Primary Education (M26)#

Scope of Appropriation#

Expenses#

Components of the Appropriation#

Comparators for Restructured Appropriation#

What is Intended to be Achieved with this Appropriation#

This appropriation is intended to deliver relevant curriculum for all Year 0 to 8 students in all schools through the development of tailored programmes and resources to meet the needs of all students.

How Performance will be Assessed and End of Year Reporting Requirements#

The following information is an indication of expected numbers and is provided for context only.

Note 1 - Attending regularly is defined as attending at least 90% of half days. This is measured through a Term 2 survey that approximately 80% of schools complete.

Note 2 - School Analysis of Variance Reports report on a school's performance compared to agreed performance goals.

Note 3 - This measure covers State and State-integrated schools only. The 2017/18 Budget Standard and Estimated Actual refer to the 2017 calendar year. The 2018/19 Budget Standard refers to the 2018 calendar year.

Note 4 - Funding is allocated based on information on the level of Maori language learning which schools provide in their roll returns, subject to an annual auditing and verification process to confirm the appropriate level of funding.

Note 5 - There are five levels of funding, based on hours the curriculum is taught in Te Reo Maori per week. Levels 1 and 2 are described below:

• Level 1 - more than 20 and up to 25 hours
• Level 2 - more than 12.5 and up to 20 hours.

Note 6 - This is calculated from the July School Roll returns.

Note 7 - This number includes English-medium and Maori-medium at full primary, contributing and intermediate schools, but excludes Partnership Schools | Kura Hourua, Te Kura Correspondence School, private schools and composite schools or schools that pro-rata their roll. The calculation is based on a survey conducted in the first pay run of April.

Note 8 - This indicator covers State and State-integrated schools only and is based on the calendar year.

End of Year Performance Reporting#

Performance information for this appropriation will be reported by the Minister of Education in a report appended to the Ministry of Education's annual report.

Service Providers#

Current and Past Policy Initiatives#

Reasons for Change in Appropriation#

This appropriation was previously classified under non-departmental other expenses. The reorganisation of appropriations for 2018/19 is also set out in Part 1.4 - Reconciliation of Changes in Appropriation Structure.

The $96.441 million increase in this appropriation compared to the equivalent appropriation in 2017/18 is mainly due to a combination of:

• return to the Crown of 2017/18 Investing in Educational Success underspend ($29.976 million increase)

• difference in estimated school term start dates between the two financial years ($22.198 million increase)

• additional teachers' salary costs mainly from increased rolls, changes in the level of effective average rates and settlement of collective employment agreements ($18.570 million increase)
• increase in school operations grant allocations ($10.301 million increase)

• supporting the collaboration of early learning services implementing Communities of Learning | Kahui Ako ($8.203 million increase)

• increased provision for the revised cost profile for Investing in Educational Success ($4.786 million increase)

• grants to schools boards of trustees towards triennial election costs ($2.834 million increase)

• effect of transfer in 2017/18 to departmental output expense category Interventions for Target Student Groups in Outcomes for Target Students Groups MCA to cover the cost of initial investigation into pay equity claims ($1.731 million increase)

• initiatives to ease short to medium-term pressure on teacher supply ($1.150 million increase), and

• transfer of funding to Improved Quality Teaching and Learning MCA, departmental output expense Support and Resources for Teachers for enhancement to Progress and Consistency Tool/Te Waharoa Ararua ($2.829 million decrease).

School Managed Network Funding (M26)#

Scope of Appropriation#

Expenses#

What is Intended to be Achieved with this Appropriation#

This appropriation is intended to achieve equitable access to a secure managed network for schools.

How Performance will be Assessed and End of Year Reporting Requirements#

Note 1 - Eligible schools are defined as State schools, integrated schools and partnership schools.

End of Year Performance Reporting#

Performance information for this appropriation will be reported by Network for Learning Ltd in its annual report.

Reasons for Change in Appropriation#

The $1.700 million decrease in this appropriation for 2018/19 is due to a transfer from 2016/17 to 2017/18 owing to re-negotiation of statement of works and amendments to service implementation of the managed network which is a component of the Education Sector Digital Strategy.

School Transport (M26)#

Scope of Appropriation#

Expenses#

Components of the Appropriation#

What is Intended to be Achieved with this Appropriation#

This appropriation is intended to achieve maximum attendance at schools by ensuring transport options are available for eligible students.

How Performance will be Assessed and End of Year Reporting Requirements#

End of Year Performance Reporting#

Performance information for this appropriation will be reported by the Minister of Education in a report appended to the Ministry of Education's annual report.

Service Providers#

The table above shows the main service providers for this appropriation.

Current and Past Policy Initiatives#

Reasons for Change in Appropriation#

The $8.500 million decrease in this appropriation for 2018/19 is due to savings arising from operational efficiencies ($5.500 million) and increased funding in 2017/18 only for specialised school transport assistance ($3 million).

Conditions on Use of Appropriation#

Schooling Improvement (M26)#

Scope of Appropriation#

Expenses#

Comparators for Restructured Appropriation#

What is Intended to be Achieved with this Appropriation#

This appropriation is intended to achieve improved education outcomes through supporting schools in their responsiveness to the needs of their communities, including iwi-strengthening projects.

How Performance will be Assessed and End of Year Reporting Requirements#

Note 1 - These learners are identified in the contracts with iwi and are monitored towards attainment of qualifications such as the National Certificate of Educational Achievement.

End of Year Performance Reporting#

Performance information for this appropriation will be reported by the Minister of Education in a report appended to the Ministry of Education's annual report.

Service Providers#

Current and Past Policy Initiatives#

Reasons for Change in Appropriation#

This appropriation was previously classified under non-departmental other expenses. The appropriation now also includes an element of a disestablished appropriation as shown in the Comparators for Restructured Appropriation table above. The reorganisation of appropriation for 2018/19 is also set out in Part 1.4 - Reconciliation of Changes in Appropriation Structure.

Secondary Education (M26)#

Scope of Appropriation#

Expenses#

Components of the Appropriation#

Comparators for Restructured Appropriation#

What is Intended to be Achieved with this Appropriation#

This appropriation is intended to deliver relevant curriculum for all Year 9 to 13 students in all schools through the development of tailored programmes and resources to meet the needs of all students.

How Performance will be Assessed and End of Year Reporting Requirements#