Vote Education - Supplementary Estimates 2012/13

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 $2.462 million to $263.651 million mainly owing to a combination of:

• increased pay rates agreed for teachers' aides ($2.203 million increase)
• support for the education sector in Christchurch, Waimakariri and Selwyn to recover from the effects of the 2010 and 2011 earthquakes ($830,000 increase)
• expansion of the intensive wraparound service following closure of McKenzie School and changes to the rolls of several other residential special schools, resulting in a transfer of funds from non-departmental other expense Special Needs Support ($706,000 increase)
• provision for an organisation change management programme over 2012/13 and 2013/14 ($510,000 increase), and
• transfers to 2013/14 mainly for delays in projects related to the Positive Behaviour for Learning initiative and net of several transfers from the previous financial year ($1.670 million decrease).

Policy Advice (M26)#

Scope of Appropriation#

Reasons for Change in Appropriation#

This appropriation decreased by $3.773 million to $11.283 million mainly owing to a transfer of research funding to departmental output expense Strategic Leadership in the Sector ($3.800 million decrease).

School Property Portfolio Management (M26)#

Scope of Appropriation#

Expenses and Revenue#

Reasons for Change in Appropriation#

This appropriation increased by $69.821 million to $1,416.162 million mainly owing to a combination of:

• increased capital charge mainly as a result of the revaluation of the property portfolio at 30 June 2012 ($41.771 million increase)
• provision for additional losses from disposal or demolition of school property ($12.540 million increase)
• support for the education sector in Christchurch, Waimakariri and Selwyn to recover from the effects of the 2010 and 2011 earthquakes ($11.958 million increase)
• provision for additional legal action related to weather-tightness issues ($4.260 million increase)
• additional funding for the School Network Upgrade Project ($859,000 increase), and
• a reallocation of funding from Budget 2012 related to network management to departmental output expense Strategic Leadership in the Sector ($3.050 million decrease).

Strategic Leadership in the Sector (M26)#

Scope of Appropriation#

Expenses and Revenue#

Reasons for Change in Appropriation#

This appropriation increased by $6.913 million to $26.647 million mainly owing to reconsideration of where certain activities should be charged, including a transfer of:

• research funding from departmental output expense Policy Advice ($3.800 million increase), and
• funding from Budget 2012 related to network management from departmental output expense School Property Portfolio Management ($3.050 million increase).

Support and Resources for Education Providers (M26)#

Scope of Appropriation#

Expenses and Revenue#

Reasons for Change in Appropriation#

This appropriation increased by $19.941 million to $96.291 million owing to:

• transfers of unallocated funding from non-departmental output expense Curriculum Support and non-departmental other expense Primary Education and unspent funding from the previous financial year for ongoing implementation of Novopay including remediation ($11.267 million increase)
• provision for implementation of the Early Learning Information System ($3.791 million increase)
• support for the education sector in Christchurch, Waimakariri and Selwyn to recover from the effects of the 2010 and 2011 earthquakes ($3.723 million increase)
• other transfers of unspent funding from the previous financial year ($963,000 increase), and
• provision for an organisation change management programme over 2012/13 and 2013/14 ($197,000 increase).

Support and Resources for Teachers (M26)#

Scope of Appropriation#

Expenses and Revenue#

Reasons for Change in Appropriation#

This appropriation decreased by $1.014 million to $71.475 million owing to a combination of:

• a transfer of funding to 2013/14 after delays with development of achievement standards and associated resources to align curriculum in the Maori-medium sector with the New Zealand Curriculum ($1.580 million decrease)
• a transfer of funding to 2013/14 after development of Te Marautanga o Te Aho Matua was delayed until research into learner, kura practitioner and whanau teaching and learning needs is complete ($422,000 decrease)
• a transfer of funding from the previous financial year for Youth Guarantee Learning Networks after slower than expected progress on youth-specific literacy and numeracy assessment ($500,000 increase), and
• additional funding for implementation of Ka Hikitia Managing for Success, including production of awareness raising campaign materials ($400,000 increase).

Support and Resources for the Community (M26)#

Scope of Appropriation#

Expenses and Revenue#

Reasons for Change in Appropriation#

This appropriation decreased by $1.125 million to $11.824 million mainly owing to a transfer to non-departmental other expense Early Childhood Education to extend several existing programmes to engage and target vulnerable Maori children under the age of three and their whanau in high quality, culturally relevant early childhood education with deliberate linkages to other supporting social services ($1.255 million decrease).

Part 2.2 - Non-Departmental Output Expenses#

Curriculum Support (M26)#

Scope of Appropriation

Reasons for Change in Appropriation

This appropriation decreased by $4.742 million to $60.824 million for 2012/13. This decrease is mainly owing to a combination of:

• a transfer to departmental output expense Support and Resources for Education Providers for the ongoing implementation of Novopay ($4.400 million decrease)
• a transfer of funding to 2013/14 for satellite broadband support, as schools have not been connected as quickly as expected ($638,000 decrease), and
• support for the education sector of Christchurch, Waimakariri and Selwyn to recover from the effects of the 2010 and 2011 earthquakes ($400,000 increase).

Professional Development and Support (M26)#

Scope of Appropriation#

Reasons for Change in Appropriation#

This appropriation decreased by $431,000 to $88.168 million for 2012/13. This decrease is owing to a combination of:

• a transfer to non-departmental other expense Special Needs Support to assist in the transformation of the Resource Teacher: Learning and Behaviour service and its amalgamation with the Supplementary Learning Support service ($400,000 decrease)
• a transfer to non-departmental output expense Provision of Information and Advisory Services for additional costs related to services from the previous financial year ($180,000 decrease), and
• interim support for taskforce schools for goal setting, pathway planning and monitoring of learners undertaking National Certificate of Educational Achievement Level 2 ($250,000 increase).

Provision of Information and Advisory Services (M26)#

Scope of Appropriation#

Reasons for Change in Appropriation#

This appropriation increased by $1.280 million to $25.031 million for 2012/13. This increase relates to transfers from non-departmental other expense Schooling Improvement ($1.100 million increase) and non-departmental output expense Professional Development and Support ($180,000 increase) for additional costs related to services from the previous financial year.

Qualifications Support Structures (M26)#

Scope of Appropriation#

Reasons for Change in Appropriation#

This appropriation increased by $27,000 to $6.076 million for 2012/13 owing to transfer from Foreign Affairs and Trade to support the negotiation of international trade agreements.

School Transport (M26)#

Scope of Appropriation#

Reasons for Change in Appropriation#

This appropriation decreased by $2.103 million to $176.506 million for 2012/13. This decrease is owing to a combination of:

• savings from special needs transport assistance as a result of the 2012 tender round ($4.147 million decrease)
• volume and price changes for transport services, other than index-based or inflation changes ($1.049 million increase)
• index-based adjustments to contract prices ($557,000 increase), and
• changes in rolls ($366,000 increase).

Secondary-Tertiary Interface (M26)#

Scope of Appropriation#

Expenses#

Reasons for Change in Appropriation#

This appropriation was established from 1 January 2013 through transfers from non-departmental other expense Secondary Education ($17.821 million increase) and Vote Tertiary Education non-departmental output expense Tertiary Education Grant and Other Funding ($5.225 million increase) to implement a single cash-based resourcing model for secondary-tertiary programmes that will better enable funding to follow learners.

Output Performance Measures and Standards#

Service Academies (M26)#

Scope of Appropriation#

Reasons for Change in Appropriation#

This appropriation increased by $90,000 to $3.404 million for 2012/13 as a result of a transfer from Vote Tertiary Education non-departmental output expense Training for Designated Groups for the expansion of service academy provision.

Supporting Parenting (M26)#

Scope of Appropriation#

Reasons for Change in Appropriation#

This appropriation increased by $610,000 to $6.076 million for 2012/13. The increase mainly relates to:

• improving outcomes for diverse learners in the first year at school ($500,000 increase), and
• foundation literacy and numeracy ($200,000 increase).

Summary of Service Providers for Non-Departmental Outputs#

The above table summarises funding to be allocated through Vote Education to non-departmental providers, along with an indication of the mechanism to be used for reporting actual performance and (where determined) the length of the funding commitment.

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 $400,000 to $7.669 million for 2012/13. The decrease in appropriation is owing to a transfer to benefits and other unrequited expenses Mapihi Pounamu to offset the current oversubscription in that appropriation.

Mapihi Pounamu (M26)#

Scope of Appropriation#

Reasons for Change in Appropriation#

This appropriation increased by $400,000 to $3.650 million for 2012/13. The increase in appropriation is owing to a transfer from benefits and other unrequited expenses Boarding Allowances and Bursaries to meet higher than expected demand for scholarships.

National Study Awards (M26)#

Scope of Appropriation#

Reasons for Change in Appropriation#

This appropriation decreased by $4.494 million to $22.392 million for 2012/13. The decrease is mainly owing to:

• a transfer to non-departmental other expense Support for Early Childhood Education Providers to fund the Early Learning Taskforce initiative ($2.517 million decrease), and
• winding back provision for some study awards that have been consistently underspent ($2.203 million decrease).

Teacher Trainee Scholarships (M26)#

Scope of Appropriation#

Reasons for Change in Appropriation#

This appropriation decreased by $5.372 million to $3.505 million for 2012/13. The decrease in funding is mainly owing to:

• an easing in teachers supply, which has reduced the numbers eligible for voluntary bonding, and a decline in the claims for pre-2005 scholarships ($4.913 million decrease), and
• a transfer to non-departmental other expense Secondary Education for increased relieving costs related to mentors for the Teach First New Zealand Scholarship Programme ($459,000 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

This appropriation increased by $36.425 million to $1,415.292 million for 2012/13. The increase is mainly owing to a combination of:

• additional forecasted funded hours, based on revised assumptions updated for latest information on actual hours used, changes in distribution of these hours across funding categories, as well as for latest population and labour market projections ($28.002 million increase)
• changes to equity funding, including a one-off change to accounting, and more services requiring a review of their entitlement, possibly owing to increased funding rates from Budget 2012 ($7.168 million increase)
• a transfer from departmental output expense Support and Resources for the Community to extend several existing programmes to engage and target vulnerable Maori children under the age of three and their whanau in high quality, culturally relevant early childhood education with deliberate linkages to other supporting social services ($1.255 million increase), and
• changes in average rates paid per funded hour ($3.411 million decrease).

Integrated Schools Property (M26)#

Scope of Appropriation#

Reasons for Change in Appropriation#

This appropriation increased by $1.076 million to $58.251 million for 2012/13 mainly owing to additional funding for the School Network Upgrade Project ($1.076 million increase).

Interest Subsidy for Schools (M26)#

Scope of Appropriation#

Reasons for Change in Appropriation#

This appropriation decreased by $201,000 to $156,000 for 2012/13 owing to lower than expected interest rates and a reducing number of loans.

Primary Education (M26)#

Scope of Appropriation#

Reasons for Change in Appropriation#

This appropriation decreased by $28.648 million to $2,785.758 million for 2012/13. The decrease is mainly owing to a combination of:

• lower than expected national school roll projections ($29.694 million decrease)
• reduced Accident Compensation Corporation rates from 1 July 2012 and savings achieved from the previous year ($5.538 million decrease)
• lower than expected subsidies for KiwiSaver ($1.509 million decrease)
• savings against support for students to meet literacy and numeracy standards reallocated to departmental output expense Support and Resources for Education Providers to support implementation of Novopay ($1.500 million decrease)
• provision for Novopay school support package ($3.863 million increase)
• higher than expected average teacher salary rates ($2.452 million increase), and
• additional support for the recovery of the education sector in Christchurch, Waimakariri and Selwyn from the impact of the Christchurch earthquakes ($2.178 million increase).

School Transport Bus Controllers (M26)#

Scope of Appropriation#

Reasons for Change in Appropriation#

This appropriation decreased by $16,000 to $689,000 for 2012/13 owing to revised estimates of entitlements for bus controllers.

Schooling Improvement (M26)#

Scope of Appropriation#

Reasons for Change in Appropriation#

This appropriation decreased by $1.100 million to $7.884 million for 2012/13 owing to a transfer to non-departmental output expense Provision of Information and Advisory Services for additional costs related to services from the previous financial year.

Secondary Education (M26)#

Scope of Appropriation#

Reasons for Change in Appropriation#

This appropriation decreased by $9.843 million to $2,056.493 million for 2012/13. The decrease is mainly owing to a combination of:

• a transfer to a new non-departmental output expense appropriation Secondary-Tertiary Interface to implement a single cash-based resourcing model for secondary-tertiary programmes that will better enable funding to follow learners ($17.821 million decrease)
• provision for settlement of the 2013-2015 Secondary Teachers' Collective Agreement ($6.048 million increase)
• provision for Novopay school support package ($1.965 million increase), and
• additional support for the recovery of the education sector in Christchurch, Waimakariri and Selwyn from the impact of the Christchurch earthquakes ($1.453 million increase).

Special Needs Support (M26)#

Scope of Appropriation#

Reasons for Change in Appropriation#

This appropriation increased by $1.544 million to $339.765 million for 2012/13. The increase is mainly owing to a combination of:

• the additional costs of amalgamating the Supplementary Learning Support teachers and the Resource Teacher: Learning and Behaviour service, including potential redundancy and redeployment costs partially funded by a transfer from non-departmental output expense Professional Development and Support ($3.735 million increase)
• transfers to 2013/14 mainly for delays in projects related to the Positive Behaviour for Learning initiative ($1.894 million decrease), and
• the expansion of the intensive wraparound service under departmental output expense Interventions for Target Student Groups following closure of McKenzie School and changes to the rolls of several other residential special schools ($706,000 decrease).

Support for Early Childhood Education Providers (M26)#

Scope of Appropriation#

Reasons for Change in Appropriation#

This appropriation increased by $3.750 million to $21.893 million for 2012/13. The increase is owing to:

• a transfer from benefits and other unrequited expenses National Study Awards to support the work of the Early Learning Taskforce in progressing the Better Public Services early childhood education participation target ($2.517 million increase), and
• a transfer from the previous financial year related to delays in disbursing the Minister's Discretionary Fund ($1.233 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

This appropriation decreased by $80.475 million to $550.511 million for 2012/13 owing to a combination of:

• delays in expenditure on repairs to defective buildings and Christchurch earthquake remediation, as finalising these plans has taken longer than expected
• delays in the acquisition of new sites for school construction
• delays in the design and construction of new schools, including kura and wharekura
• delays across a range of other programmes, and
• additional investment, particularly in relation to the School Network Upgrade Project.

Part 6.2 - Non-Departmental Capital Expenditure#

Property Disposal Incentives Scheme (M26)#

Scope of Appropriation

Reasons for Change in Appropriation

This appropriation decreased by $1.011 million to $1.500 million for 2012/13 owing to changes in the expected timing of property sales.

Schools Furniture and Equipment (M26)#

Scope of Appropriation#

Reasons for Change in Appropriation#

This appropriation decreased by $660,000 to $16.319 million for 2012/13. The decrease is owing to:

• School Network Upgrade Project ($834,000 decrease), and
• a transfer from the previous financial year for the School Network Upgrade Project ($174,000 increase).

The Network for Learning Limited (M26)#

Scope of Appropriation#

Capital Expenditure#

Reasons for Change in Appropriation#

This new appropriation of $5.500 million was established during the 2012/13 year to provide working capital for a new Crown company - The Network for Learning Limited.

Reporting Mechanisms#

The above table indicates the mechanisms to be used for reporting actual results for each non-departmental capital expenditure appropriation.