The Regulatory Framework for the New Zealand School Sector A Description.DOC

The Regulatory Framework for the New Zealand School Sector: A Description Norman LaRocque Consultant The World Bank 1818 H Street, NW Room G8-038 Washington, DC 20433 Email: nlarocque@worldbank.org CanadaFirst@xtra.co.nz November 1999 Introduction This report provides a brief description of the schools sector in New Zealand The report is structured as follows: • Section presents an overview of the New Zealand schools sector, with particular emphasis on the private school sector; and • Section then describes the key elements of the regulatory framework for New Zealand schools as at November 1999 In doing so, it highlights some of the key developments in the schools sector since the initial Tomorrow’s Schools reforms were introduced in October 1989 The discussion in Section looks at a number of aspects of the regulatory framework for schools This includes the rules that govern the establishment, governance and funding of schools, industrial relations policies, the rules that guide the day to day operation of schools and the powers that the Minister and Ministry of Education have to intervene in failing schools Section 1: School Sector Overview The New Zealand schools sector is predominantly “public” in nature This is true in terms of both the provision and funding of school-level education: • the vast majority of schools are State-owned; • • State-owned schools make up the lion’s share of school enrolments; and the State funds virtually all of the operating costs of State and State Integrated schools and a smaller, but still significant, share of the operating costs of private schools Public schooling is free until age 19 Children must attend school from the time they turn six until the time they turn sixteen Exemptions are available for students up to age seven, for students who are home schooled and for some students who have reached the age of fifteen In practice, most children start school on their fifth birthday Compulsory Education At a Glance • Compulsory education is mostly state-funded and owned • 725,000 students at 2,774 schools as at July 1998 • Education is compulsory from age 6-16 and free until age 19 • Major reform of administrative and governance arrangements for schools as part of the 1989 Tomorrow’s Schools reforms • Government policy during the 1990s favoured devolution of responsibility and increased targeting of spending • The regulatory framework differs depending on whether the school is private, state or integrated As at July 1998, there were nearly 725,000 students enrolled at schools in New Zealand This was some 60,000 more than at the same point in 1992 Growing rolls in aggregate has been a key feature of the New Zealand education scene since the early 1990s However, this increase has not been felt evenly across schools or across regions of the country Areas such as Auckland have seen significant roll growth, while areas such as Southland and the West Coast of the South Island have seen roll declines 6 The increase in the number of school-age students reflects an increased number of births and higher inward migration The number of school-age students is expected to continue growing over the medium-term – with primary and secondary student numbers peaking in 2002 and 2007 respectively As shown in Figure 1, 87 percent of students attended State schools, while 10 percent attended State integrated schools and only percent attended private schools The share of enrolments in private schools is low by international standards (e.g., Australia, the United State of America, the Netherlands) Figure Share of Enrolm ents in 1998: State, Integrated and Private Schools 10% 3% State State Integrated 87% Private Source: Calculated using data from Education Statistics of New Zealand for 1998 New Zealand is characterised by a large number of schools per capita and by a significant number of schools in rural areas As at July 1998, there were 2,774 schools in New Zealand, with fully a third of them located in rural areas Since Tomorrow’s Schools, there has been some increase in the diversity of the state school sector in New Zealand This has been due principally to an increase in the number of denominational and non-denominational integrated schools and the establishment of Kura Kaupapa Maori (state schools in which the Maori language, culture and values predominate) 10 Europeans make up nearly 2/3 of the student population, with Maori, Pacific Peoples and Asians making up 20 percent, percent and percent respectively The Maori share has remained constant in recent years, but the Pacific Peoples and Asian shares have been increasing at significantly more than the overall growth in the sector Section 2: The Regulatory Framework for Schools 11 The regulatory framework that governs schools is a function of whether it is a state school, an integrated school or a private school This section outlines the structure of education in New Zealand, discusses the various elements of the regulatory framework and highlights how these differ across different types of school The attached Annex summarises the key differences There are three major types of schools in New Zealand These are: • State schools These are owned state-owned schools that receive “full” state subsidies and are extensively regulated by the state; • Integrated schools These are privately-owned schools that have “integrated” into the state system They receive state operating subsidies at about the same level as State schools and are subject to many of the same regulations that apply to State schools; and • Private or ‘independent’ schools These privately-owned schools They receive lower government funding and are subject to fewer regulations Table The Structure of Education in New Zealand Parliament Makes the law, provides the money and expects accountability Minister of Education • • Sets the policy direction Specialist Education Service Careers Services Early Childhood Development/ Skill New Zealand Minister Responsible for the Education Review Office Ministry of Education • Gives policy advice, implements policies, develops curriculum statements, allocates resources, and monitors effectiveness Evaluates the performance of individual schools New Zealand Qualifications Authority • Administers qualifications and provides assurances about qualifications quality, overseas the examination system, and develops the National Qualification s Framework Teachers Registration Board • Schools and their Boards of Trustees Parents and School Communities Source: Ministry of Education Registers teachers Education Review Office • Evaluates schools and reports publicly Regulatory Infrastructure 12 The schools sector is governed by a myriad of: • sector specific and general Acts of Parliament (e.g., the Education Act 1964 and 1989, the Private Schools Conditional Integration Act (PCSIA) 1975, the State Sector Act 1988, the Public Finance Act 1989); • Orders-in-Council or regulations (e.g., the Education Staffing Orders, Education Bursaries Regulations); • contracts (e.g., the Primary and Secondary Teacher Collective Contracts); and • government policies promulgated by the various state education agencies (e.g., school funding levels, suspension guidelines) 13 These rules operate as an attempt to influence behaviour on both sides of the education market – the supply side (i.e., schools) and demand side (i.e., parents and students) 14 The bulk of the legislative rules are included in the Education Act 1989 However, the other pieces of legislation outlined above also play a significant role in some key areas For example: • the PCSIA governs the rules around integration of private schools into the state system; and • the State Sector Act has a key role in governing the important area of industrial relations 15 A number of regulations and policy rules govern significant parts of the education sector For example, the financing of schools is set by Government policy, while much of the industrial relations environment is set out in the centrally negotiated Collective Employment Contract for teachers 16 The use of specific legislation to govern the sector contrasts with the situation in many other sectors of the economy, which are governed by general legislation that applies across a number of sectors (e.g., the Companies Act, the Commerce Act, etc) In that sense, the legislation is vertical rather than horizontal – that is, it operates within an industry, rather than across a number of industries 17 Another characteristic of the legislation is that it sets out in significant detail the rules governing the sector This is true in a number of areas including hours of operation and school governance For example, the make-up of a school governing body is set out in much detail in the Education Act 1989 In contrast, the Companies Act provides only general guidance on what the make-up of a corporate governing body should be 18 The key education agencies and their responsibilities are set out in Table and described briefly below: • Ministry of Education Government department with oversight of the education system in New Zealand Its key roles are to provide policy advice to the Minister of Education, implement policies agreed by the Government, develop curriculum statements, allocate resources to students and providers and monitor effectiveness • Education Review Office (ERO) Government department which reviews and reports publicly on the quality of education in all schools and early childhood centres • New Zealand Qualifications Authority (NZQA) Crown entity which administers qualifications and provides assurances about qualifications, oversees the examinations system and develops the National Qualifications Framework • Skill New Zealand (formerly the Education and Training Support Agency) Crown entity that oversees a range of initiatives designed to build a highly skilled and adaptable workforce • Specialist Education Services (SES) Provides specialist services to students who have complex learning, communication and behaviour needs, and to their families, early childhood services and schools • Early Childhood Development (ECD) Crown entity responsible for promotion and development of quality, accessible and culturally appropriate early childhood education in New Zealand • Career Services rapuara Crown entity that provides career planning and information The Service works with schools to help them meet their obligation to provide career planning programmes for students It also delivers career information and planning services Entry of Schools 19 The rules surrounding the entry of schools into the education market differ across state, integrated and private schools The rules regarding state and private schools are set out in the Education Act 1989, while those applying to integrated schools are set out in the Private Schools Conditional Integration Act (PSCIA) State Schools 20 • State schools can be established through one of three avenues: Standard State schools These are schools established by the Minister of Education under s 146 of the Education Act 1989 Schools established under this section of the Education Act 1989 must be either a primary, a secondary, an intermediate or a composite school Schools are generally established by the Minister under s 146 to accommodate roll growth Over 90 percent of the 2,774 schools in New Zealand would be classified as ordinary state schools During 1998, six new ones were opened; • Kura Kaupapa Maori These are state schools, established under s 155 of the Education Act 1989, in which the Maori language, culture and values predominate They must have the support of the parents of at least 21 children to be established Kura must adhere to the Te Aho Matua philosophy (since early 1999) The Minister of Education has absolute discretion to refuse to establish a Kura At the beginning of 1998, there were 59 Kura; and • Designated character schools These are schools established under s 156 of the Education Act 1989 Again, each proposed school must have the support of the parents of 21 children to be established The Minister of Education has absolute discretion to refuse to establish a school under s 156 In the ten years since 1989, no s 156 schools have been established There are currently a number of groups considering applications for s 156 schools 21 Guidelines are currently being prepared to govern the establishment of s 155 and s 156 schools The Secretary for Education can limit the roll size of any school – either explicitly or by limiting the amount of property provided to a school State School Reorganisations and Closures 22 Under the Education Act 1989, a Board of Trustees has the ability to reorganise its school so as to meet the needs of its community Reorganisations can include recapitulation (under s 150), change of class (s 153) and merger (s 156A) 23 Before doing so, a Board of Trustees must get the approval of the Minister of Education S 157 of the Education Act 1989 requires that, in considering reorganisations, the Minister of Education must consult both with the school concerned and with schools whose roll might be affected by the reorganisation There are not large numbers of reorganisations in any given year 24 The Educational Development Initiative (EDI) provides incentives to encourage communities to reorganise education in an area to meet the challenge of falling school rolls EDI has been in place since 1992 Broadly speaking, it involves allowing some of the savings obtained from a school closure to be retained by the remaining school(s) for a set period The savings can be used in a variety of ways to improve educational delivery Over 80 EDIs have been completed since 1992, with 18 of those in 1998 alone 25 The Minister of Education can close schools under s 154 of the Education Act 1989 Before doing so, the Minister of Education must consult with the Board of Trustees and with the Board of Trustees of any school where the roll might be affected by the closure Table outlines the most recent trends in school reorganisations Integrated Schools 26 The Private Schools Conditional Integration Act allows any existing or proposed private school to apply for integration into the state system As at July 1998, there were 312 integrated schools Schools sign an integration agreement with the Minister of Education This agreement may set enrolment limits, describe the special character education to be offered by the school and prescribe religious instruction and observances (s 7) Both the school and the Minister of Education have the right to terminate the agreement if obligations are not being met (ss 11-13) A 1998 amendment to the Education Act 1989 made it easier to terminate an agreement where both sides agreed Table School Reorganisations and Closures 1994 1995 1996 1997 1998 Recapitulation 10 16 Decapitation 1 Change of Class 4 Merger EDIs Closures 12 NA 14 25 18 13 Source: New Zealand Schools 1998, Ministry of Education Private Schools 27 The Education Act 1989 provides for the registration and inspection of private schools Registration requirements are spelled out in s35A of the Education Act 1989 As at July 1998, there were 117 private schools operating in New Zealand Private schools must be registered To be registered, a private school must satisfy the Education Review Office that it is “efficient” In this case, efficient means the school: • has suitable premises, staffing, equipment and curriculum; • provides tuition for or more students between the ages of and 15; • provides suitably for the inculcation in the minds of students of sentiments of patriotism and loyalty; and • gives students tuition of a standard of tuition no lower than that provided to students enrolled at a state school of the same class 28 Private schools can seek provisional registration and can operate for 12 months with that status The Education Review Office (ERO) must then inspect the school within the first six to twelve months after it has begun operating A private school receives no funding while only provisionally registered and it is up to the school to book an ERO inspection in order to gain full registration Once ERO is satisfied the school is efficient in relation to the standards set out in the Act, full registration will be recommended to the Ministry of Education 29 Private schools are required to gain resource management consent for establishing and operating the school This and other costs involved in setting up a new private school have been identified as a significant barrier to entering the market Fee Setting 30 The ability to charge fees varies across the different types of schools: • State schools cannot charge fees However, they can seek donations from parents Typically, donations would represent a small part of a school’s overall budget (less than 10 percent) These donations are tax deductible for parents; • Integrated schools can charge attendance dues and can also seek donations from parents Attendance dues are intended to cover the cost of the capital investment made by the proprietors in the school’s land and buildings or to cover leasing charges for school accommodation; and • Private schools are free to charge fees as they see fit, subject to market conditions Fees are the main source of income for private schools Fees generally range from $2000 to $9600 per year (GST inclusive) They can also seek donations from parents or raise money in other ways (e.g., sponsorships) 31 Some state and integrated schools are beginning to charge relatively high fees - one recently integrated secondary school was proposing to charge $3,000 in fees, while a state intermediate school is seeking a donation of $700 from parents Funding 32 The state is the main funder of compulsory schooling in New Zealand, with spending of around $4 billion annually The funding systems differ across state, integrated and private schools In general though, state and integrated schools are funded at a much higher level than private schools The funding systems that apply to each type of school, and their key differences are summarised in Table and are discussed below Table Summary of Key Income Sources for all Schools Type of Income State Integrated Private Operations grant 100% 100% 30-40% Capital works 100% No % Interest subsidy Salaries/ wages 100% 100% 30-40% TFEA Yes, decile 1-9 Yes, decile 1-9 No ORS Yes Yes Yes TIE No No Yes External Sources Donations only Attendance dues and donations Fees and donations State Schools 33 State schools receive a range of cash and in-kind resourcing from the Crown This resourcing includes school staffing, school operating grants, school transport, special needs support, curriculum materials and support and school land and buildings Government spending on the compulsory education sector has increased significantly in recent years This has been due to increases in the number of students and teachers in the system, as well as regular increases in school operating grants and negotiated pay increases for teachers 34 Some key facts on funding state schools areas follows: • real per-student spending on teacher salaries and operating grants was percent higher in 1998 than in 1990; • real per-student spending on teacher salaries and operating grants rose by an average of 3.3 percent between 1994 and 1998, after falling somewhat during the first half of the 1990s; and • operating grants rose by an average of 4.7 percent between 1994 and 1998; and teacher salaries grew by an average of 2.8 percent per year between 1994 and 1998 Box 1: Pilot for Self-Managed Property Funding In October 1999, the Government announced a pilot programme that would allow schools to fully self-manage their school property funding (SMPF) This initiative builds on previous changes that have increased the schools’ self-management of funding – school operating grants are currently bulk-funded for all schools and teacher salaries are bulk-funded for around 30 percent of schools Currently, schools are funded through a series of programmes for both maintaining the quality of their property (called baseline funding) and increasing the quantity of their property (called roll growth funding) Funding for property maintenance is provided separately to schools through their operations grant Under SMPF, the pilot schools will fully self-manage their share of baseline and roll growth funding, rather than it being managed by the Ministry of Education through the range of baseline and roll growth programmes Schools’ funding needs over a five-year period will be negotiated with the Ministry of Education, based on school development plans Funding agreements will be for five years Funds will be advanced to schools based on the timetable set out in their school development plan The level of funding will vary according to students’ year level and the assessed age and condition of the school There will also be an allowance for roll growth above current school capacity (on a per-pupil basis) Approximately 40 schools will be involved in the pilot that will run for the year 1999/2000 The pilot will be evaluated at the end of April 2000 Subject to the evaluation, further schools will be invited to take part in SMPF in 2000/01 35 The government’s policy towards resourcing has, over the past ten years, favoured both devolution and increased targeting of spending The key components are set out below and in Table Average state funding to state and private schools is set out in Table Key funding components are: • Operational Funding This funding is paid directly to schools on the basis of both universal and targeted entitlements Funding depends on a number of factors including student numbers, school type, year level and the school’s property profile In 1998, operational 10 funding amounted to nearly $700 million Targeted funding includes Targeted Funding for Educational Achievement (see Box2), the Special Education Grant, the Careers Information Grant and Maori Language Resourcing • Teacher Salary Funding State schools can be either centrally resourced or bulk-funded for teacher salaries (see Box 6) Centrally resourced schools receive their staffing in-kind, and teachers are paid centrally by the Ministry of Education The extent of subsidy depends on the qualifications and experience of the teachers at the school Under bulkfunding, schools receive cash and pay their teachers directly Under bulk-funding, the subsidy does not depend on the school’s staffing profile as all staffing entitlements are funded at the same rate Box 2: Targeted Funding for Educational Achievement In 1995, the Government introduced Targeted Funding for Educational Achievement (TFEA) as a component of schools’ operating grants TFEA is targeted to assist schools to overcome barriers to students’ learning that are associated with socio-economic disadvantage TFEA is not tied to any particular school activity In 1998, approximately $50 million was provided to schools through TFEA - just over percent of the $676 million in operating grants provided to schools in that year The per-student amount that schools receive under TFEA varies with students’ SES level All schools are ranked by decile (i.e., 10 percent of all schools) and funding steps Per-student funding is graduated – it increases as the school’s decile declines TFEA funding is available to decile 1-9 schools For 1999, per-student funding ranged from $NZ328.44 for a decile 1A school to $10.92 for a decile school The TFEA socio-economic indicator is calculated using Census “mesh-block” (a small geographic area) data and schools’ July ethnicity data It takes into account household income, parents’ occupation and educational qualifications, household crowding, parents’ income support payments and Maori and Pacific People ethnicity The rating is reviewed automatically every five years and can also be reviewed once per year if schools believe their SES make-up has changed significantly (e.g., because of a plant shutdown) TFEA has helped equalise funding across low and high decile schools In 1997: • • Decile 1-3 primary schools had total revenues per-student of $NZ3,323 versus $NZ2,978 for decile 7-10 primary schools Low-decile primary schools also had a surplus per-student of $NZ97 versus $NZ69 per-student for high decile primary schools; and decile 1-3 secondary schools had total revenues per-student of $NZ5,405 versus $NZ4,804 for decile 7-10 secondary schools However, low-decile secondary schools had a smaller surplus per-student than high decile students ($NZ23 versus $NZ30) 11 Integrated Schools 36 Integrated schools are eligible for similar funding levels as State schools The only exceptions to this are funding for vandalism and minor capital works Integrated schools must meet their own capital costs, providing facilities and equipment to a standard set by the Minister of Education Until recently, integrated schools were required to own their land and buildings This was changed recently to allow them to lease both land and buildings Table State and Integrated School Resourcing Components of Operations Grant Key Driver(s) Base funding Roll and school type Larger schools not receive this funding Per pupil funding Per pupil, weighted for year level Relief teacher funding Full time equivalent teacher entitlement (Which school roll and type determine) Targeted rural funding Distance from population centres of more than two thousand or roll and distance from schools of the same type Vandalism Roll weighted for risk rating, (this is not paid to integrated schools) Maori language Per pupil weighted for level of language immersion Targeted funding for educational achievement Per pupil weighted for decile ranking Special education grant Per pupil weighted for decile ranking Careers information Number of students form three plus, weighted for decile ranking Normal and Model Schools Roll Being phased out Risk management Roll weighted for decile ranking Secondary tertiary alignment resourcing Number of senior students by application Maintenance, minor capital works, heat, light and water Property, individual to each school Private Schools 37 Before 1970 the state provided very low levels of funding to Private Schools by a variety of means In 1970 the state decided to subsidise teacher salaries in the private sector at 20% In 1975 this was increased to 50%, bringing it into line with the salary subsidy granted to integrated schools In 1985 the Labour government removed the state subsidies of salaries, reducing it incrementally to nil by 1990 In 1991 the National government restored the state subsidy for teacher salaries at 20% 12 38 In 1995 the method by which the state funded private schools was changed Now instead of receiving funding tied to teacher salaries, private schools are funded per pupil, at a percentage of the average cost of students in the state sector This percentage is weighted according to the year level of the pupil 39 Currently, per-student funding to private schools is calculated as a proportion of subsidy paid to state schools (including operations funding, teacher salaries and capital costs) and varies by the student’s year level, as is seen in Table below Private schools currently receive 30 percent of the state subsidy for year 1-10 students and 40 percent of the state subsidy for year 11-15 students In 1998, over $37 million was paid out to private schools in per-student funding 40 Private schools are also eligible to receive funding from a number of other sources These include: • Mäori language programmes; • the Ongoing Resourcing Scheme; • Whakapiki Tauira - see Box 3; and • the Targeted Individual Entitlement (TIE) – see Box Table Per Pupil State Funding to State and Private Schools - 1999 Components Years - Years - Years - 10 Years 11 - 15 $2,871 $3,192 $4,034 $4,647 Operational $532 $597 $700 $773 Capital $650 $650 $950 $1,050 $4,053 $4,439 $5,684 $6,470 30% 30% 30% 40% $1,216 $1,332 $1,705 $2,558 State Salaries Total Average State Cost Private State Subsidy Private Per Pupil Funding Source: Ministry of Education School Governance 41 The Tomorrow's Schools reforms ushered in a new era of parental control and governance of schools Prior to 1989, schools were centrally administered by the Department of Education and local education boards Most secondary schools did, however, have boards of governors at this time with powers that included the appointment of staff 13 State Schools 42 The governance structure for state schools is set out in the Education Act 1989 The key elements of the governance framework: • State schools are governed by Boards of Trustees; • Boards of Trustees are legal entities under the Public Finance Act 1989 (s 90) They are bodies corporate and may hold real property, may sue and be sued and everything bodies corporate can do; • each Board must have between and parents; one teacher representative and the principal Secondary schools may have a student representative; and • Boards can have community representatives and can co-opt members to ensure they have the right range of skills on the Board However, parents must always represent a majority of the Board 43 Boards of Trustees are elected for three year terms and are charged with meeting the requirements of the charter negotiated between the school and the Minister of Education The charter is intended to set out the aims, purposes and objectives of the school It sets out how the school aims to meet the needs of students and how it will function within the community The Charter must include the requirements of the National Education Guidelines The Guidelines are made up of the National Education Goals, the National Administrative Guidelines and the National Curriculum Statements 44 School governing bodies have considerable authority This includes the authority to hire and fire the principal and teaching and non-teaching staff and make all decisions regarding the management of the school As noted above, they can also reorganise the school to meet the community’s needs (subject to the Minister of Education’s approval) 45 There is scope within the Education Act 1989 to have multi-school boards, although this has not been used much to date There are however restrictions on Boards of Trustees combining: • no more than four Boards of Trustees may combine; • integrated schools can only combine with other integrated schools; • integrated schools may combine only with other integrated schools if they are owned by the same proprietor 14 Box 3: Whakapiki Tauira Whakapiki Tauira is a recently introduced programme that provides financial assistance to students in low-income Maori families to help them access better and more suitable educational opportunities The programme is designed to provide lowincome Maori families with greater choice in deciding the kind of education they want for their children The programme is small in scale – it is expected to assist between 150 and 250 new students per year at a cost of $3.4 million over the first three years The programme is in essence a voucher scheme targeted at low-income Maori students Under the programme, students can receive assistance to cover a range of costs, including: • boarding school fees; • transport costs to help them attend a more distant school; • remedial tuition provided out of school time; • pay school fees at a private or integrated school; and • other education costs such as school uniforms To be eligible for Whakapiki Tauira, students must come from Maori families whose income is less than $NZ25,000 The amount of assistance provided is variable and is tailored to the student’s needs The maximum amount of assistance available is the same as under the Targeted Individual Entitlement (TIE) Scheme Unlike the TIE scheme, however, the financial assistance is redeemable at private, state and integrated schools Applications are assessed by a panel convened by the Ministry of Education Whakapiki Tauira was very well received in its first year – with over 3,200 applications lodged for the limited number of places available National Administrative Guidelines 46 The National Administrative Guidelines obligate each Board to: • foster student achievement through curriculum provision in accordance with the Curriculum Statements; • act as a good employer within Government frameworks; • manage property and financial matters; • record how the Goals are being implemented and consistently undertake self-review; • ensure the safety of students and staff; and • comply with all general legislation concerning the school operation Integrated Schools 47 Integrated schools are subject to the same governance regulations as state schools, including the election of a board of trustees, establishing a charter with the Minister of 15 Education and meeting agreed responsibilities under the National Education Guidelines Integrated schools differ from State in that they can have up to four representatives of the proprietor on their board Private Schools 48 Private schools can adopt their own governance structure and associated rules - they are not dictated by the Education Act There is great variety amongst boards in the way that they elect or appoint board members A large number have members from church or other founding bodies or from old boys’ or old girls’ associations Governing bodies can range in size from to 17 members Box 4: Targeted Individual Entitlement The Targeted Individual Entitlement (TIE) scheme was introduced in 1996 as a three-year pilot scheme and was later given indefinite funding It is designed to assist children from lowincome families to attend a private school, to give choice to families whose education options are limited and to lift educational achievement among low-income families Under the scheme, the Government funds 160 children per year to be educated in private schools Private schools receive 110 percent of the average cost of education at a state school for each TIE student accepted In 1998, the levels were $NZ4,051 for Year 1-6 students, $NZ4,496 for Year 7-8 students, $NZ6,299 for Year 9-10 students and $NZ7,088 for Year 11-13 students Where the funding does not cover the cost of tuition, participating schools usually make up the difference Families also receive an allowance ranging from $NZ900 to $NZ1,100 to cover other costs including uniforms To be eligible for the TIE scheme, students must come from families earning less than $25,000 per year Students who are accepted into the scheme may stay at the participating school for up to six years Private schools must be registered and offer the National Curriculum in order to provide places on the TIE scheme The application process is managed by the Independent Schools Council The TIE scheme was recently evaluated by the Children’s Issues Centre at the University of Otago The findings of the evaluation indicated the “scheme was successful in facilitating access to private schooling for a small group of students from low income New Zealand families" Key points from the evaluation were as follows: • the scheme successfully recruited Maori and Asian students; • participating families were characterised by a predominance of single parents and above average educational backgrounds; • high levels of satisfaction with the scheme among teachers and principals; • very positive perceptions among families; and • causes of dissatisfaction included lack of access for siblings to the scheme Curriculum State and Integrated Schools 49 State and integrated schools must follow the national curriculum and assessment practices In addition, the Minister of Education establishes the minimum hours and terms 16 within which they are to be open for instruction Private schools must prove that their hours of operation and teaching methods enable the efficient provision of compulsory education 50 The New Zealand Curriculum Framework is the foundation policy statement covering teaching, learning, and assessment for all students in all New Zealand schools The Framework establishes and identifies the principles for all learning and teaching programmes in New Zealand schools The Framework: • identifies seven essential learning areas – Health and Physical well-being, Mathematics, Science, Technology, Social Sciences and The Arts; • defines eight groups of essential skills – Communication Skills, Numeracy Skills, Information Skills, Problem-solving Skills, Self-management and Competitive Skills, Social and cooperative skills, Physical Skills and Work and Study Skills; • outlines some of the attitudes and values which are an integral part of the school curriculum; and • Schools put the National Curriculum Framework into practice through the National Curriculum Statements These documents spell out in greater detail the learning that is required under the Framework Box 5: Alternative Education Alternative Education (initially called School Based Alternative Education) was introduced in the New Zealand Government’s 1997 Budget The programme is designed to help meet the educational needs of young people age 14-15 who are outside of, or alienated from, the education system Students may be alienated from the school system either because they are unwilling to attend, or because schools are unwilling to enrol them The Alternative Education (AE) programme is designed to meet the needs of these at-risk youth by funding the delivery of education in alternative (i.e., non-school) settings Under AE, schools are eligible to receive $NZ11,100 per student per year to either provide or purchase education in alternative settings for young people in the target age group Funding is made available to schools through contracts for a set number of student places In meeting the needs of students, schools can contract for the delivery of AE places from state or private providers (either for-profit or community-based) Most of the schools involved in AE work with one or more community partners The AE initiative is similar to the ‘contract school’ models being run in the United States and other countries The initial 1997 Budget allocation for AE was relatively small - $NZ4.65 million over three years However, it was significantly expanded in the New Zealand Government’s 1999 Budget, with an additional commitment of $NZ36.835 million over three years As at July 1999, there were 400 places per year available under the AE programme This is set to increase to 1800 places by February 2001 The programme will be evaluated in late 1999 17 Private Schools 51 Private schools are not legally required to teach the national curriculum In practice, most The Secretary for Education assesses the suitability and efficiency of a private school’s curriculum through the registration process and ERO reports Private schools can set their own standards for their curriculum and will be reviewed against those They must demonstrate how the programme will be suitable for their students Achievement 2001 52 The Achievement 2001 initiative was approved by Cabinet in October 1998 with the objectives of: • providing formal recognition through qualifications (National Certificates in Educational Achievement) of a more diverse range of skills and knowledge than traditionally provided for by school qualifications; • ensuring that school qualifications meet the needs of students, prospective employers, education providers and Government; and • ensuring that the assessment for such qualifications is rigorous, incorporating both internal and external assessment 53 The new system will have the following characteristics: • National Certificates of Education Achievement (NCEAs) will be established at four levels, as the main qualification for school leavers; • Credit for the new NCEAs will be gained by students assessed as having met predefined standards; • Achievement standards are being defined for the ‘conventional’ school subjects; • Some achievement standards will be assessed in national external examinations; others will continue to be internally assessed, in the same way as unit standards; • Both internal assessment and external examination of achievement standards, as well as assessment against ‘unit standards’, will lead to NCEA credit; and • More information will be provided to employers, parents and students in terms of both descriptions of performance and traditional ‘marks’ Teachers Industrial Relations 54 In March 1998, there were nearly 44,000 teachers employed in state and integrated schools in New Zealand Representing 40,000 full-time teacher equivalents The industrial relations environment faced by most state and integrated schools is highly centralised and complex In particular: 18 • schools employ all teaching and non-teaching staff, including the principal; • all teachers must be registered or have a limited authority to teach (LATT), the principal must be a teacher, and there must be one principal per school; • for the vast majority of teachers (around 90 percent), wages, terms and conditions are contained in national collective contracts (CECs) negotiated by the Ministry (via the State Sector Act) In some instances, conditions are linked to the Education Act (e.g hours for secondary teachers) Pay generally depends on qualifications and progress up the pay scale generally increases with time served; • Ministry approval is required for individual employment contracts (IECs) In practice these tend to mirror the CEC Likewise, approval is required for site-based CECs which are uncommon; • new employees must be offered the relevant CEC and union members (who give authority) are a party to the CEC; • most schools are “centrally resourced” (CRS) and these schools are generally not given approval to pay salaries above CEC rates or employ above entitlement (unless funded by operations grants); and • the ability of schools to engage teachers as independent contractors is unclear 55 Overall, the system is a complex mix of legislation, policy, custom and practice This means that it is often difficult to find out exactly what arrangements are currently permissible 56 The proprietors of private schools, or their board of governors, employ teaching staff Registration 57 All teachers, including those in private schools, must be registered with the Teacher Registration Board (TRB) to teach in New Zealand schools Staff with specialist skills, but who lack a teaching qualification, can apply for limited authority to teach Music and drama teachers are registered under this category, as are Kura Kaupapa Maori teachers Table below sets out the registration status of teachers as at 30 June 1998 Table Teachers’ Register as at 30 June 1999 Registration Status Provisional Subject to confirmation Full registration Limited authority to teach Total Number 9203 7128 62419 3208 81958 Source: Teacher Registration Board Annual Report and Financial Statements 1999 19 58 To be registered, teachers must be: • of good character; • fit to be a teacher; • satisfactorily trained to teach; and • likely to be a satisfactory teacher or has satisfactory recent teaching experience 59 Provisional registration is given to individuals who are new to teaching and who have met all of the TRB’s other criteria These applicants must then teach continuously for two years before they can apply for full registration Teachers must renew their registration every three years 60 Limited authority to teach’ is another form of approval to teach granted by the TRB The Board may determine that a person, who fits their criteria for registration bar being satisfactorily trained to teach, may be employed as a teacher Individuals, without teacher qualifications, may then be employed by school authorities for a specific position, or may be recognised as itinerant teachers Limited authority must usually be renewed each year Box 6: Bulk Funding of Teachers’ Salaries Bulk-funding of teacher salaries has been one of the most talked about reforms in the New Zealand education sector Bulk-funded schools receive all teacher staffing entitlements in cash and use this cash to employ whatever mix of teachers, teacher aides and other staff they need to deliver the curriculum The bulk grant is paid monthly to schools and reviewed annually Centrally-resourced schools not actually receive cash to pay the teachers and hence cannot shift teacher entitlements to other types of staff (though they can use operating grants and locally raised funds to so) All schools are bulk-funded for operating grants Bulk funding was developed as part of the Fourth Labour Government's Tomorrow's Schools reforms, though it was not put into effect at the time of the other Tomorrow's Schools reforms In 1991, the National government agreed to proceed with a voluntary three-year trial of bulk funding of teachers' salaries This trial was later extended to four years 70 schools participated in the trial The scheme has evolved since then, generally becoming more advantageous to participating schools The number of bulk funded schools has increased from the initial 70 in the teachers' salaries grant trial As at August 1999: • • • 29.5 percent of all schools, with 40 percent of staff and students, were bulk funded; bulk-funding varies by education level Around 60 percent of composite/intermediate schools are bulk-funded, while 33 percent of secondary and 25 percent of primary schools are bulk-funded; and the proportion of students and staff in bulk-funded schools varied from around 35 percent at the primary level to over 60 percent at the intermediate and composite levels; and Bulk funding is not the preserve of schools in wealthy areas Nearly 25% of schools with students from low socio-economic areas have adopted bulk funding 20 School Property 61 State schools occupy Crown land and buildings They not pay either rent or a capital charge Responsibility for school maintenance is as follows: • schools are responsible for recurrent maintenance (defined as maintenance which would occur within a ten year cycle) They are funded for this through their operations grant; and • large capital works and maintenance requirements outside of the ten-year cycle are managed and paid for through the Ministry of Education 62 Boards of Trustees can not lease, buy or sell land and buildings without authority from the Secretary of Education In October 1999, the Minister of Education announced a new $10 million trial involving forty schools will enable schools to fully self manage their own property The trial is planned for next year with the option of other schools joining in 2001 (see Box 1) 63 The proprietors of integrated schools are responsible for their own capital works Private schools own their land and buildings and therefore have the responsibility for all maintenance and capital works The proprietors of these schools are responsible for securing resource management consent for their premises as a requirement of their registration Rates 64 Under the Rating Powers Act 1988: • state schools not pay rates (local property taxes) However, they may be charged for services such as sewage disposal, water supply and rubbish collection and disposal; and • private schools “not carried on exclusively for pecuniary profit” are not required to pay rates Zoning 65 The Education Amendment Act 1991 removed compulsory zoning and gave state school Boards of Trustees more latitude to govern the numbers of students enrolled in the school The Amendment allowed enrolment schemes to be established where boards can prove their school is overcrowded or threatened with overcrowding Their enrolment schemes can be based upon any criteria, provided that they not contravene the provisions of the Race Relations Act 1971 or the Human Rights Act 1993 66 A recent amendment to the Education Act 1989 require the Secretary for Education to approve enrolment schemes and set some policy goals for the schemes These goals include the desirability of students attending a ‘reasonably convenient’ school and the effect of schemes on the local network of schools Currently, just under 300 schools have enrolment schemes in place 67 Integrated schools can not have enrolment schemes Integration Agreements allow for limits on maximum enrolments Integrated schools may also show preference in enrolling students who agree with the school’s particular religious or philosophical basis (Private Schools Conditional Integration Act, s29) Subject to that allowance, potential students may not, 21 however, be discriminated against based on their religion, race, socio-economic background or for not paying fees 68 Private schools are free to selectively enrol students, and to determine their own enrolment numbers and selection criteria Interventions 69 The Government has limited ability to intervene in schools that are not performing well In limited situations, the Government can: • appoint a financial director (s 81b); • take proceedings to enforce a school’s Charter (s 64); • dismiss a Board of Trustees and appoint a commissioner (s 106 and s107) The Commissioner can only be retained until such time as a new Board of Trustees is elected Since 1989, just under 50 Boards have been replaced by Commissioners 70 Since the passage of the Education Amendment Act 1998, the Secretary for Education can require a Board of Trustees to get specialist advice to meet its statutory obligations School Support Project 71 The Schools Support project comprises two major elements: • Safety Net for individual schools at risk of being unable to meet their obligations under the National Education Guidelines • Schooling Improvement initiatives for clusters of potentially at-risk schools, predominately located in low-income communities 72 The key roles of School Support are to raise the educational achievement of students, reduce disparities of educational achievement, and strengthen school and community relationships The project acts to strengthen performance or resolve issues related to health and safety, curriculum provision, governance and management and the relationships between the key people involved in a school or cluster of schools 73 Approximately 10 percent of state schools are in the school support safety net, while a further percent are in the Education Improvement Initiative Total Crown spending on School Support in 1999/2000 is $19.1 million 22 Regulatory Framework for State, Integrated and Private Schools State Integrated Private What schools get • Ops grant 100% 100% • Capital 100% Yes and No 4% interest subsidy • Salaries 100% 100% 25-40% (subsidy) Yes No • TFEA Yes • ORS Yes Yes Yes • TIE No No Yes How School Operates: • Fees Can’t charge fees Voluntary donations allowed • Curriculum Must follow National Curriculum Unrestricted • Hours of operation Fixed centrally (2+2) Unrestricted • Industrial Relations Collective contract Unrestricted • Enrolment • Must take all students other than those previously suspended • Subject to enrolment scheme legislation Can charge attendance dues Voluntary donations allowed • Is subject to a maximum negotiated roll • Preference for character Unrestricted Unrestricted • Teacher registration Teachers must be registered/LATs • Suspension rules Subject to suspension rules Unrestricted • School class Restricted to primary, secondary, intermediate and composite Unrestricted • School registration Not required • School must be registered • Provisional registration Regulatory Framework for State, Integrated and Private Schools (Cont’d) State Integrated Private Governance Board composition Fixed by legislation Fixed by legislation Unrestricted Method of choosing governing body Fixed by legislation Fixed by legislation Unrestricted Other Building Act Health & Safety in Employment Act, Privacy Act, etc Other States specific PFA, Civil Defence; State Sector Act, etc ... learning, and assessment for all students in all New Zealand schools The Framework establishes and identifies the principles for all learning and teaching programmes in New Zealand schools The. .. qualifications and provides assurances about qualifications, oversees the examinations system and develops the National Qualifications Framework • Skill New Zealand (formerly the Education and... Integrated and Private Schools 10% 3% State State Integrated 87% Private Source: Calculated using data from Education Statistics of New Zealand for 1998 New Zealand is characterised by a large