Vote Education - Supplementary Estimates 2011/12

Details of Projected Movements in Departmental
Net Assets#

Ministry of Education

Information Supporting the Supplementary Estimates Vote Education#

MINISTER(S) RESPONSIBLE FOR APPROPRIATIONS: Minister of Education (M26)

ADMINISTERING DEPARTMENT: Ministry of Education

MINISTER RESPONSIBLE FOR MINISTRY OF EDUCATION : Minister of Education

Part 1 - Summary of the Vote#

Part 1.3 - Trends in the Vote

Summary of Financial Activity

Part 2 - Details and Expected Performance for Output Expenses#

Part 2.1 - Departmental Output Expenses#

Interventions for Target Student Groups (M26)

Scope of Appropriation

Expenses and Revenue

Reasons for Change in Appropriation

This appropriation increased by $677,000 to $257.192 million for 2011/12. The increase in funding is mainly owing to a combination of:

• an increase in funding rates for school-based teacher aides ($1.212 million increase)
• changes in funding for the Positive Behaviour for Learning programme net of transfers to 2012/13 ($386,000 increase)
• increased provision for communications and learning services carried forward from the previous year ($235,000 increase)
• provision for managing a change programme for residential special schools ($200,000 increase)
• other changes to cost allocations between departmental output expense appropriations ($291,000 increase), and
• reallocation of resources between departmental output expense appropriations arising from the recommendations of the early childhood education taskforce and following establishment of the Student Achievement Function ($1.922 million decrease).

School Property Portfolio Management (M26)#

Scope of Appropriation#

Expenses and Revenue#

Reasons for Change in Appropriation#

This appropriation increased by $73,000 to $1,353.888 million for 2011/12. The increase in funding is owing to writing off some school property assets that are no longer economic to repair ($7.118 million increase). This is almost entirely offset by:

• reduced capital charge reflecting delays in undertaking some property works projects ($3.287 million decrease)
• transfers of funding to subsequent financial years ($3.200 million decrease), mainly related to delays with the defective buildings programme, and
• changes to cost allocations between departmental output expense appropriations ($558,000 decrease).

Strategic Leadership in the Sector (M26)#

Scope of Appropriation#

Expenses and Revenue#

Reasons for Change in Appropriation#

This appropriation decreased by $397,000 to $33.739 million for 2011/12. The decrease in funding is owing to changes to cost allocations between departmental output expense appropriations.

Support and Resources for Education Providers (M26)#

Scope of Appropriation#

Expenses and Revenue#

Reasons for Change in Appropriation#

This appropriation increased by $7.119 million to $82.743 million for 2011/12. The increase in funding is mainly owing to a combination of:

• reallocation of resources between departmental output expense appropriations arising from the recommendations of the early childhood education taskforce and following establishment of the Student Achievement Function ($3.844 million increase)
• provision for developing the business case for the Network for Learning and managing the tendering process ($3.371 million increase)
• other changes to cost allocations between departmental output expense appropriations ($870,000 increase)
• provision for the proposals stage of the Early Learning Information project ($440,000 increase)
• a transfer to 2012/13 as a result of delays in the schools' payroll project ($1.397 million decrease), and
• a transfer to 2012/13 as a result of delays in the long-term work programme ($765,000 decrease).

Support and Resources for Teachers (M26)#

Scope of Appropriation#

Expenses and Revenue#

Reasons for Change in Appropriation#

This appropriation decreased by $11.221 million to $68.126 million for 2011/12. The decrease in funding is mainly owing to:

• delays related to cross-school networks to share knowledge and best practice for National Standards ($3.500 million decrease)
• delays related to networks for sharing knowledge and best practice to support the roll out of the Youth Guarantee ($2.600 million decrease)
• slower than expected roll out of a shared qualifications pathway at the secondary/tertiary interface ($2.415 million decrease)
• reallocation of resources between departmental output expense appropriations arising from the recommendations of the early childhood education taskforce and following establishment of the Student Achievement Function ($1.569 million decrease), and
• other changes to cost allocations between departmental output expense appropriations ($1.227 million decrease).

Support and Resources for the Community (M26)#

Scope of Appropriation#

Expenses and Revenue#

Reasons for Change in Appropriation#

This appropriation increased by $1.124 million to $14.172 million for 2011/12. The increase in funding is owing to changes to cost allocations between departmental output expense appropriations.

Part 2.2 - Non-Departmental Output Expenses#

Curriculum Support (M26)#

Scope of Appropriation

Reasons for Change in Appropriation

This appropriation increased by $2.333 million to $64.622 million for 2011/12. This increase is mainly owing to transfers of truancy funding from non-departmental other expenses Primary Education and Secondary Education for the new Student Attendance and Engagement service ($2.506 million increase).

Professional Development and Support (M26)#

Scope of Appropriation#

Reasons for Change in Appropriation#

This appropriation increased by $365,000 to $87.982 million for 2011/12. This increase is mainly owing to a combination of:

• a transfer from non-departmental other expense Special Needs Support for induction training for new cluster managers and lead school principals and board of trustees for the Resource Teachers: Learning and Behaviour service ($603,000 increase)
• reduced contribution required from Vote Education for the Confidential Listening and Assistance Service ($276,000 increase)
• a transfer to non-departmental other expense Primary Education for reading recovery - tutor and teacher training and support approved as part of Budget 2011 ($435,000 decrease), and
• a transfer to departmental output expense Interventions for Target Student Groups to enable greater flexibility and process efficiency around delivering the Tips for Autism programme ($79,000 decrease).

Provision of Information and Advisory Services (M26)#

Scope of Appropriation#

Reasons for Change in Appropriation#

This appropriation increased by $1.112 million to $23.751 million for 2011/12 as a result of the application of new capital charge rules for Crown entities to the New Zealand Qualifications Authority.

School Transport (M26)#

Scope of Appropriation#

Reasons for Change in Appropriation#

This appropriation increased by $238,000 to $171.749 million for 2011/12 owing to:

• increased costs for transporting children with special education needs and for additional travel in Christchurch arising from the earthquakes ($2.750 million increase), and
• almost entirely offset by reduced claims for daily bus routes ($1.925 million decrease) and technology services ($587,000 decrease).

Service Academies (M26)#

Scope of Appropriation#

Reasons for Change in Appropriation#

This appropriation increased by $469,000 to $2.419 million for 2011/12 to fund the New Zealand Defence Force component of service academies from 2012.

Supporting Parenting (M26)#

Scope of Appropriation#

Reasons for Change in Appropriation#

This appropriation decreased by $462,000 to $5.262 million for 2011/12. This decrease is mainly owing to:

• a transfer to non-departmental other expense Support for Early Childhood Education Providers for additional support for the Targeted Assistance for Participation programme ($333,000 decrease), and
• a transfer of funding to departmental output expense Strategic Leadership in the Sector for extending support for the Growing Up in New Zealand longitudinal study ($150,000 decrease).

Part 3 - Details for Benefits and Other Unrequited Expenses#

Part 3.2 - Non-Departmental Benefits and Other Unrequited Expenses#

Boarding Allowances and Bursaries (M26)

Scope of Appropriation

Reasons for Change in Appropriation

This appropriation decreased by $250,000 to $7.819 million for 2011/12. The decrease in appropriation is owing to a transfer to benefit and other unrequited expenses Mapihi Pounamu to meet higher than expected demand in that appropriation.

Mapihi Pounamu (M26)#

Scope of Appropriation#

Reasons for Change in Appropriation#

This appropriation increased by $250,000 to $3.500 million for 2011/12. The increase in appropriation is owing to a transfer from benefit and other unrequited expenses Boarding Allowances and Bursaries to meet higher than expected demand from students seeking financial assistance.

National Study Awards (M26)#

Scope of Appropriation#

Reasons for Change in Appropriation#

This appropriation increased by $73,000 to $25.780 million for 2011/12 related to settlement of Secondary Teachers', Area School Principals' and Area School Teachers' collective agreements.

Teacher Trainee Scholarships (M26)#

Scope of Appropriation#

Reasons for Change in Appropriation#

This appropriation decreased by $5.627 million to $11.135 million for 2011/12. The decrease in funding is owing to:

• a transfer to departmental output expense Support and Resources for Education Providers to fund an extension of the existing payroll contract ($5.294 million decrease), and
• assistance for Christchurch students undertaking tertiary study who are facing serious hardship as a consequence of the earthquakes, transferred to Vote Tertiary Education - benefits and other unrequited expenses Tertiary Scholarships and Awards ($333,000 decrease).

Part 5 - Details and Expected Results for Other Expenses#

Part 5.2 - Non-Departmental Other Expenses#

Early Childhood Education (M26)

Scope of Appropriation

Reasons for Change in Appropriation

The appropriation decreased by $82.927 million to $1,312.418 million in 2011/12. The decrease is mainly owing to a combination of:

• lower growth in volume of hours of early childhood education than expected ($109.343 million decrease)
• slower than expected uptake of 20 hours early childhood education by playcentres and kohanga reo services ($27.829 million decrease), and
• increase in the cost per hour of early childhood education through changes in the proportion of hours for under-twos and over-twos and faster movement towards the Government goal of services having at least 80% of teachers registered ($55.382 million increase).

Integrated Schools Property (M26)#

Scope of Appropriation#

Reasons for Change in Appropriation#

This appropriation increased by $3.852 million to $57.289 million for 2011/12. The increase is mainly owing to funding transferred from the previous financial year for the Schools Network Upgrade Project ($2.500 million increase) and increased property grants to proprietors of integrated schools ($889,000 increase).

Primary Education (M26)#

Scope of Appropriation#

Reasons for Change in Appropriation#

The appropriation increased by $11.649 million to $2,741.794 million in 2011/12. The increase is mainly owing to a combination of:

• increased effective average rates for teachers and principals and expected incremental creep ($15.393 million increase)
• settlement of the Secondary Teachers', Area School Principals' and Area School Teachers' Collective Agreements ($3.658 million increase)
• redistribution of salaries funding over the non-departmental other expense appropriations for Primary Education, Secondary Education and Special Needs Support ($3.627 million increase)
• additional funding for costs of changes in school classifications, integrations and closures ($4.400 million increase)
• a transfer from the previous financial year after delays in support for students to meet literacy and numeracy standards ($2.400 million increase)
• an increase in the rates for accident compensation levies ($1.147 million increase), and
• lower national school roll projections ($20.508 million decrease).

School Transport Bus Controllers (M26)#

Scope of Appropriation#

Reasons for Change in Appropriation#

This appropriation decreased by $53,000 to $754,000 for 2011/12 owing to revised estimates of entitlements for bus controllers.

Secondary Education (M26)#

Scope of Appropriation#

Reasons for Change in Appropriation#

The appropriation increased by $25.521 million to $2,032.020 million in 2011/12. The increase is mainly owing to a combination of:

• settlement of the Secondary Teachers', Area School Principals' and Area School Teachers' Collective Agreements ($35.902 million increase)
• increased effective average rates for teachers and principals and expected incremental creep ($7.159 million increase)
• additional funding for costs of changes in school classifications, integrations and closures ($2.660 million increase)
• additional funding for support of Wanganui Collegiate school ($1.500 million increase)
• an increase in the rates for accident compensation levies ($825,000 increase)
• lower national school roll projections ($12.189 million decrease)
• redistribution of salaries funding over the non-departmental other expense appropriations for Primary Education, Secondary Education and Special Needs Support ($5.753 million decrease)
• a transfer to Vote Tertiary Education (non-departmental output expense Tertiary Education Grants and Other Funding) to reflect higher than predicted enrolments in tertiary-led Trade Academies ($2.355 million decrease), and
• a transfer of truancy funding to non-departmental output expense Curriculum Support for the new Student Attendance and Engagement service ($2.053 million decrease).

Special Needs Support (M26)#

Scope of Appropriation#

Reasons for Change in Appropriation#

The appropriation increased by $3.693 million to $321.443 million in 2011/12. The increase is mainly owing to a combination of:

• redistribution of salaries funding over the non-departmental other expense appropriations for Primary Education, Secondary Education and Special Needs Support ($2.126 million increase)
• increased effective average rates for teachers and principals and expected incremental creep ($1.763 million increase)
• additional funding for costs of changes in school classifications, integrations and closures ($1.260 million increase)
• increased roll projections for special education schools ($1.023 million increase)
• settlement of the Secondary Teachers', Area School Principals' and Area School Teachers' Collective Agreements ($778,000 increase)
• transfer of funding for the Positive Behaviour for Learning programme to departmental output expense Interventions for Target Student Groups ($2.795 million decrease), and
• a transfer to non-departmental output expense Professional Development and Support for induction training for new cluster managers and lead schools principals and board of trustees for the Resource Teacher: Learning and Behaviour service ($603,000 decrease).

Support for Early Childhood Education Providers (M26)#

Scope of Appropriation#

Reasons for Change in Appropriation#

This appropriation increased by $4.015 million to $26.647 million for 2011/12. This increase is mainly owing to:

• transfers from non-departmental other expense Early Childhood Education and non-departmental output expense Supporting Parenting to meet higher than expected demand for Targeted Assistance for Participation ($2.315 million increase), and
• a transfer of funding from the previous financial year ($1.700 million increase).

Part 6 - Details and Expected Results for Capital Expenditure#

Part 6.1 - Departmental Capital Expenditure#

Ministry of Education - Capital Expenditure PLA (M26)

Scope of Appropriation

Capital Expenditure

Reasons for Change in Appropriation

The appropriation decreased by $46.088 million to $501.183 million for 2011/12 owing to a combination of:

• delays in various projects - notably for defective buildings, new schools and site purchases ($78 million decrease)
• additional funding for the School Network Upgrade Project ($6.224 million increase), and
• increased expenditure carried over from previous years ($23.688 million increase).

Part 6.2 - Non-Departmental Capital Expenditure#

Property Disposal Incentives Scheme (M26)#

Scope of Appropriation

Reasons for Change in Appropriation

This appropriation decreased by $3.850 million to $1.661 million for 2011/12 owing to a transfer to subsequent years reflecting changes in the expected timing of property sales.

Schools Furniture and Equipment (M26)#

Scope of Appropriation#

Reasons for Change in Appropriation#

This appropriation increased by $2.163 million to $20.636 million for 2011/12 mainly owing to a transfer from the previous year financial year for the School Network Upgrade Project.