New Zealand schools are funded primarily by the government. The three main components of government funding are school operations, teacher salaries, and property funding. In addition schools receive various forms of ‘in-kind’ resourcing from the government, including software licensing, laptops for principals, other ICT support and professional development.
State and state-integrated schools get funding from all three sources, while private schools only receive School Operations funding.
|Year||School operations ($)||Teacher salaries ($)||Property funding ($)|
- School Operations – This is the total grant and has had any manual adjustments removed for fees and levies, such as International Student, Foreign Fee Paying and the Risk Management Scheme.
- Teacher Salaries – Teacher salaries payments in state and state integrated schools increased by 11.0% from 2019 to 2020. It is important to note there was one extra pay run in 2020 compared to 2019. Analysis which excludes one pay run from 2020 to allow a like-for-like comparison gives an increase in salaries payments of around 7%. This growth can be explained in part by a 1% increase in funded student places, which in turn increases the entitlement for teacher FTE. The remainder of the increase (around 6%) is due to the impact of the 2019 Collective settlement, with the second-round increase to salaries coming into effect on 1 July 2020. As a comparison, teacher salaries payments increased by a similar amount (5.8%) in 2019 when the first Collective increases came into effect. In the three years prior to 2019 (2015 to 2018), the average annual increase in teacher salaries was 3.0%.
- Property Funding – This includes the Five Year Agreement (5YA) funding programme. This funding is allocated to boards for modernising and upgrading school buildings. Schools can choose which projects to progress using the funding, but should prioritise those projects required to maintain health and safety standards, upgrade essential infrastructure and create modern learning environments.
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