CPAG Policy Brief: School Funding

FUND SCHOOL AND ECCE FOR EQUITABLE OUTCOMES

Educational attainment in Aotearoa New Zealand is deeply inequitable; our attainment disparities are much higher than those of comparable countries.

On average, the more socio-economic advantage a student has in New Zealand, the higher the level of their educational attainment, and the higher their test results across reading literacy, numeracy and science.

Rates of regular attendance at school, and likelihood of attaining qualifications are both strongly correlated to socio-economic circumstances.

Māori students and Pacific students are less likely than most students to have socio-economic advantage, and this has a severe effect on Māori and Pacific educational attainment,[v] particularly in mainstream schools. Māori students in Māori Medium Education have similar levels of educational attainment to students overall.

A key reason why disparities in educational attainment are higher in New Zealand than in other comparable countries is that New Zealand state investment in educational equity is low compared to other countries.

Budget 2022 introduced the Equity Index as a replacement for decile-based targeted funding in schools. This is a positive move, as its increased accuracy will ensure more students facing socio-economic disadvantage benefit from equity funding.

However, the level of school equity funding is still below where it needs to be to reach the Tomorrows Schools Taskforce recommendation of 10% of total operational and staffing expenditure.  The 2022 Budget that introduced Equity Funding increased the amount spent previously on decile-related funding, 2.9% of operational spending, by only 50%, taking it to around 4.3%.

Educational attainment empowers students with a broader range of higher education and life opportunities and is associated with positive health and employment outcomes and less likelihood of interaction with the justice system.

RECOMMENDATIONS:

  • Increase Equity Index funding to 10% of operational and staffing funding, as per the Tomorrow Schools Taskforce recommendation,

  • Extend the Equity Index model to not-for-profit/ community-based early childhood education as a priority.

  • Do not extend equity funding to for-profit ECCE services, as quality, efficacy, transparency and value for the public expenditure cannot be guaranteed.

IMPACTS AND INDICATORS

If implemented, these actions would be steps towards moving Aotearoa to be a nation where all children and families flourish free from poverty.

Indicators of effectiveness would be

  • Higher educational attainment, attendance and retention for students who are socio-economically disadvantaged

  • More equitable educational attainment, attendance and retention

 Making education equitable is relevant to New Zealand:

  • meeting its targets for UN Sustainable Development Goal 4: “Ensure inclusive and equitable quality education and promote lifelong learning opportunities for all”

  • meeting its obligations under the United Nations Declaration on the Rights of Indigenous Peoples

  • meeting its obligations under the UN Convention on the Rights of the ChIld 

Making education equitable is an essential step towards the national vision “that New Zealand be the best place in the world for children and young people”