New Zealand Schools Report Ngā Kura o Aotearoa 2014

New Zealand Schools Report Ngā Kura o Aotearoa 2014

New Zealand Schools Report Ngā Kura o Aotearoa 2014

New Zealand Schools Report Ngā Kura o Aotearoa 2014 1

New Zealand Schools Report Ngā Kura o Aotearoa 2014

2 New Zealand Schools Report Ngā Kura o Aotearoa 2014 This Government has a vision for a country where all our young people have access to effective education and the ability to achieve at a high standard, academically and otherwise. New Zealand Schools Ngā Kura o Aotearoa 2014 Ministry of Education National Office 45−47 Pipitea Street, Thorndon Private Bag 1666, Wellington 6011 Telephone: (04) 463 8000 Fax: (04) 463 8001 Email: information.officer@minedu.govt.nz © Crown copyright 2015 Permission to reproduce: The copyright authorises reproduction of this work, in whole or in part, so long as no charge is made for the supply of copies and the integrity and attribution of the work as a publication of the Ministry of Education is not interfered with in any way.

All rights reserved.

Enquiries should be made to the Ministry of Education. ISSN 1173–1773–1982

New Zealand Schools Report Ngā Kura o Aotearoa 2014

New Zealand Schools Report Ngā Kura o Aotearoa 2014 3 Contents Foreword . . 6 Overview . . 8 Highlights of 2014 . . 9 Introduction . . 11 Schools in 2014 . . 11 Investing in Educational Success . . 12 Expectations of schools in 2014 . . 13 Strategies to improve Māori achievement . . 14 Māori language in education . . 14 Strategies to improve Pasifika achievement . . 16 Resourcing . . 19 Government funding to schools . . 19 Financial performance of New Zealand schools . . 22 2014 decile recalculation .

. 25 Digital technologies for teaching and learning . . 26 Foundation skills . . 29 Reading literacy in primary schooling . . 29 Reading literacy in secondary schooling . . 33 Mathematics literacy in primary schooling . . 35 Mathematics literacy in secondary schooling . . 38 Science in secondary schooling . . 40 Student outcomes . . 43 Proportion of 18-year-olds with NCEA Level 2 or equivalent qualification . . 43 School-leaver qualifications . . 44 Student participation and engagement with learning . . 49 Student transience . . 49 Retention of students in secondary schooling . . 50 Early leaving exemptions .

. 51 Attendance at school . . 53 Stand-downs and suspensions from school . . 55 Initiatives . . 59 Positive Behaviour for Learning . . 59 PB4L School-Wide . . 59 Success for All: Every School, Every Child . . 60 Youth Guarantee . . 61 Social Sector Trials . . 62 Quality teaching and education providers . . 65 Teacher numbers . . 66 Professional learning and development . . 67 Community representation by school trustees . . 69 Appendix 1 . . 73 Plans to address pressures on school capacity . . 73 References . . 94

New Zealand Schools Report Ngā Kura o Aotearoa 2014

4 New Zealand Schools Report Ngā Kura o Aotearoa 2014 Figures Figure 1: Schooling options for young people of compulsory school attendance age . 11 Figure 2: Nominal and real operational grants to schools, 2004–2014 . 20 Figure 3: Teacher salary funding to state and state-integrated schools, 2004–2014 . 21 Figure 4: Direct property funding to schools, 2004–2014 . 21 Figure 5: Percentage of Year 1-8 students meeting the National Standard for Reading, 2012–2014 . 31 Figure 6: Percentage of Year 1-8 students meeting the National Standard for Writing, 2012–2014 . 31 Figure 7: Percentage of students meeting Ngā Whanaketanga Reo, 2014 .

32 Figure 8: Percentage of 15-year-old students who met the literacy and numeracy requirements for NCEA Level 1, 2010-2014 . 33 Figure 9: Percentage of 15-year-old students meeting NCEA Level 1 literacy and numeracy requirements, by ethnicity, 2010-2014 . 34 Figure 10: Percentage of 15-year-old students meeting the NCEA Level 1 literacy requirements, by gender, 2010-2014 . 35 Figure 11: Percentage of students meeting the National Standard for Mathematics, 2012–2014 . 36 Figure 12: Percentage of students meeting Ngā Whanaketanga Pāngarau, 2014 . 37 Figure 13: Percentage of 15-year-old students meeting NCEA Level 1 numeracy requirements, by ethnicity, 2010–2014 .

38 Figure 14: Percentage of school leavers participating in 14 or more credits at Level 1 or above in the sciences | pūtaiao learning area, by ethnicity, 2010-2014 . 40 Figure 15: Percentage of school leavers participating in 14 or more credits at Level 1 or above in the sciences | pūtaiao learning area, by gender, 2010-2014 . 41 Figure 16: Better Public Service target: required and actual attainment rates of 18-year-olds with at least a Level 2 qualification, by ethnicity, 2011–2017 . 43 Figure 17: Proportion of school leavers with NCEA Level 1 or above, by ethnic group 2009–2014 . 44 Figure 18: Proportion of school leavers with NCEA Level 2 or above, by ethnic group 2009–2014 .

45 Figure 19: Proportion of school leavers with NCEA Level 3 or above, by ethnic group 2009–2014 . 46 Figure 20: Transients per 1,000 enrolled students, 2009 to 2014 . 50 Figure 21: Retention rate: proportion of school leavers aged 17 or above, by ethnicity, 2009–2014 . 50 Figure 22: Early leaving exemption application approval and decline rates, 2004–2014 . 52 Figure 23: Early leaver exemption rates per 1,000, by ethnicity, 2004–2014 . 52 Figure 24: Absence rates, by gender and current year level, 2014 . 54 Figure 25: Age-standardised stand-down rates, by ethnicity, 2000–2014 . 56 Figure 26: Age-standardised stand-down rates, by ethnicity and school quintile, 2014 .

57 Figure 27: Age-standardised suspension rates, by ethnicity, 2000–2014 . 57 Figure 28: Number of schools expected to have at least one Māori board member versus proportion of schools with fair Māori representation, 2000–2014 . 70 Figure 29: Number of schools expected to have at least one Pasifika board member versus proportion of schools with fair Pasifika representation, 2000–2014 . 71

New Zealand Schools Report Ngā Kura o Aotearoa 2014

New Zealand Schools Report Ngā Kura o Aotearoa 2014 5 Tables Table 1: All students involved in Levels 1–4a of Māori-language education, 2006–2014 . . 15 Table 2: School revenue, 2011–2014 . . 22 Table 3: Expenditure of state and state-integrated schools, by main expenditure category, 2011–2014 . . 23 Table 4: Percentage of schools with an operating surplus, 2012–2014 . . 24 Table 5: Percentage of schools in different working capital ratio bands, 2014 . . 24 Table 6: Public equity trends, 2012–2014 . . 25 Table 7: Percentage of schools with an increase in public equity, 2014 . . 25 Table 8: Teacher loss rates, by school type, May 2007/2008 to May 2013/14 .

. 67 Table A1.1: Schools with enrolment schemes in place for part of or all of 2014 . . 76

New Zealand Schools Report Ngā Kura o Aotearoa 2014

6 New Zealand Schools Report Ngā Kura o Aotearoa 2014 Foreword New Zealand has a good education system and it is getting better. As the information in this report shows, achievement levels are rising for our secondary school pupils, we are doing a better job of delivering culturally relevant education to Maori and Pasifika students, student suspensions are falling, fewer students are seeking to leave school early and the proportion of Year 1 – 8 students at or above the National Standard for reading, writing and mathematics is increasing.

However, this report also shows that a significant number of students are still leaving school without the minimum qualification considered necessary for full participation in adult life (NCEA Level 2).

A disproportionate number of them are Maori, Pasifika, come from poorer families or have special needs. That is not acceptable. This is a Government that is ambitious for every kid. We want every New Zealand student to have the chance to achieve their potential and the chance to play a full part in the life of their community. That is why we have embarked on a programme of educational reform to raise achievement levels for all students. Key components of that programme are:  National Standards which help teachers to identify and target student needs at an early age  The challenging Better Public Service targets we have set to focus ourselves and the education sector on raising achievement levels for all students  Trades Academies which are re-engaging the interest of students at risk of disengaging from the education system  Public Achievement Information showing how the sector, regions and individual schools are performing; and  the $359 million Investing in Educational Success programme.

We know what makes a difference in classrooms and we know what makes a difference outside classrooms and the changes we have made are lifting student achievement by targeting the things that make the greatest difference. IES, which is being rolled out across the country now, will add to that momentum. By involving parents and communities in the setting of common achievement challenges for the new Communities of Learning it is fostering parental engagement and raising community expectations. These are the two things research tells us have the greatest out-of-school influence on student learning.

By creating new teaching and leadership roles IES is enabling the most effective teachers and principals to share their knowledge and expertise across multiple schools. This will raise the quality of teaching and leadership – the two things we know have the greatest in-school impact on student learning. IES is also giving teachers a genuine choice between going into management and staying in the classroom. Meanwhile the new Principal Recruitment Allowance is incentivising some of our best principals to go where their skills will make the greatest difference.

These changes are equipping teachers, principals, parents, whānau and the wider community with the information and tools they need to raise student achievement.

New Zealand Schools Report Ngā Kura o Aotearoa 2014

New Zealand Schools Report Ngā Kura o Aotearoa 2014 7 This report shows we are making progress, but there is more to be done. The students of today will be the adults of tomorrow upon whom we and our grandchildren will depend. I am pleased to present to Parliament New Zealand Schools Ngā Kura o Aotearoa – 2014. Hon. Hekia Parata Minister of Education

New Zealand Schools Report Ngā Kura o Aotearoa 2014

8 New Zealand Schools Report Ngā Kura o Aotearoa 2014 Overview Data, research and a wider range of information is increasing our understanding about what is happening in and across New Zealand schools.

As we continue to better understand our Public Achievement Information and how it can contribute to raising the achievement of our young people, we are more effectively identifying and focusing on areas of change that will make the biggest difference. Research shows that, within schools, the quality of teaching and school leadership has the biggest influence on whether students succeed. In 2014 the Government introduced Investing in Educational Success (IES) to help lift student achievement and to provide new career opportunities for teachers and principals. IES has been designed so that children benefit from the skills and knowledge of great teachers from across a whole group of schools.

With schools working together it is easier for children to move through the educational system. The Government is investing an extra $359million in funding over four years, and $155million per year after that to help raise student achievement.

The New Zealand schooling system is increasingly diverse with a total of 2,532 schools in 2014. These include 1,961 primary schools, 167 contributing schools and 366 secondary schools. This total can also be broken by 2,108 state schools, 331 state-integrated schools, 88 independent schools and 5 Partnership Schools. We also have Kura dedicated to teaching te reo, special schools supporting children’s needs with specialised help, area schools serving our rural community, and many different faith-based schools serving the needs of different communities. In 2014 Partnership Schools were introduced into the New Zealand education system, focused on improving educational outcomes for those groups of students whom the system has not served well.

The most significant difference between Partnership Schools and state schools is that they have greater freedom and flexibility to innovate and engage with their students, in return for stronger accountability for improving educational outcomes. Completion of upper secondary education is associated with a range of economic and social benefits both in New Zealand and across the OECD1. Research shows that a formal qualification at NCEA Level 2 or above is the benchmark that young adults need to achieve as a basic prerequisite for future work or training. Qualifications outcomes for our school leavers continued to improve in 2014, with a reduction in the percentage of students leaving school with no qualifications.

To boost skills and employment the Government has set a Better Public Service target that 85% of 18-year-olds will have achieved NCEA Level 2 or an equivalent qualification in 2017. While we have seen a big improvement in the number of kids achieving NCEA Level 2 there is still more to be done for those that have traditionally been left behind by the system. Māori and Pasifika students have the lowest rates of attainment of NCEA Level 2 or equivalent, but at the same time they have made the greatest improvements since 2009. Initiatives such as Achievement Retention Transitions (ART), work in partnership with schools to identify young people at risk of not achieving their NCEA Level 2, with a particular focus on Māori and Pasifika students.

There is no clear evidence that levels of literacy in our school-aged population are improving, particularly in mathematics. International studies have shown that we are not improving in basic literacy and numeracy skills and lag behind the top-performing countries. National Standard results for mathematics show that in 2014 just under a third of students in Year 8 were below the National Standard.

In terms of student disengagement, the 2014 attendance survey shows truancy levels are slightly higher than the previous year and the rate continues to be higher for secondary school students. 1 Organisation for Economic Co-operation and Development

New Zealand Schools Report Ngā Kura o Aotearoa 2014

New Zealand Schools Report Ngā Kura o Aotearoa 2014 9 Student retention and engagement, however, have been consistently improving. More kids are staying at school until at least their 17th birthday and the number of early leaving exemptions has decreased by around 90% since 2006. Stand-downs and suspensions were at their lowest rate in 15 years and there has been a significant reduction in the number of Māori or Pasifika students being stood-down or suspended.

Some of these improvements can be attributed to the Positive Behaviour for Learning initiative, which is a long-term approach to improving the behaviour and well-being of children and young people. The final evaluation of this initiative found it is supporting positive changes to school culture and increased consistency in approaches to behaviour.

Highlights of 2014  Implementation of the National Standards continued in 2014. The proportions of students achieving at or above the National Standards for reading (78.0%), writing (71.1%) and mathematics (75.2%) have increased in each of the last two years since the introduction of National Standards.  The Government has set a target of increasing the proportion of 18-year-olds with an NCEA Level 2 or equivalent qualification to 85% by 2017, attained either through school or through tertiary study. In 2014, 81.2% of 18-year-olds had attained this level, an increase from 78.6% in 2013 and 77.2% in 2012.

This suggests that we are on track to reach the 2017 target.

 Age-standardised rates of stand-downs (20.0 per 1,000) and suspensions (3.7 per 1,000) were at the lowest rate in 15 years.  In 2014, 83.2% of students remained in school until at least their 17th birthday, an increase from 79.3% in 2009.

New Zealand Schools Report Ngā Kura o Aotearoa 2014

10 New Zealand Schools Report Ngā Kura o Aotearoa 2014 CHAPTER 1:

New Zealand Schools Report Ngā Kura o Aotearoa 2014 11 Introduction Schools in 2014 n July 2014 there were 2,532 schools in New Zealand (including 22 Teen Parent Units), with 767,258 students. A further 5,555 students were home-schooled.

The schooling system is loosely divided into two parts: primary education for students aged 5–12 (Years 1–8) and secondary education for students aged 13–18 (Years 9–13). The schooling options are displayed below. Figure 1 also includes the year level of students and, in senior secondary school, the qualification level that most students study towards.

Figure 1: Schooling options for young people of compulsory school attendance age The New Zealand education system does not make distinctions between academic and vocational/technical programmes. The design of The New Zealand Curriculum (Ministry of Education, 2007), Te Marautanga o Aotearoa (Ministry of Education, 2008b) and the National Certificate of Educational Achievement (NCEA) qualifications enables students to select from a range of courses (including industry-based qualifications) in the senior years of secondary school (Years 11–13).

I

12 New Zealand Schools Report Ngā Kura o Aotearoa 2014 New Zealand provides a free education system through state-owned and operated schools.

However, both state- integrated and private options exist. State-integrated schools are part of the state system but retain their special character. Partnership Schools/Kura Hourua are a new type of school in the New Zealand education system, focused on improving educational outcomes for those groups of students the system has not served well. This includes Māori and Pasifika students, students with special education needs and, students from low socio-economic backgrounds. The most significant difference between Partnership Schools and state schools is that they have greater freedom and flexibility to innovate and engage with their students, in return for stronger accountability for improving educational outcomes.

Partnership Schools/Kura Hourua give parents increased choice about the type of school their child attends, and bring a wider range of educational options into the schooling network. We expect that there will be future opportunities to adopt successful and innovative practices from Partnership Schools for use in state schools. The first five Partnership Schools opened in 2014 and there are currently nine. Investing in Educational Success Investing in Educational Success (IES) is a Government initiative, announced in early 2014, to help lift student achievement. It is also intended to provide new career opportunities for teachers and principals.

Research shows that, within schools, the quality of teaching has the biggest influence on whether students succeed. IES has been designed with this in mind and is intended to help raise achievement by:  improving teaching practice across New Zealand  enabling teachers to work together and benefit from each other’s knowledge and experience  helping all children benefit from the skills and knowledge of great teachers from across a group of schools  helping schools work together so that it is easier for children to move through the education system A total of $359million funding is available over the first four years of the programme, and $155million annually after that.

Communities of Learning Communities of Learning are groups of schools and kura that come together to raise achievement for children and young people by:  sharing expertise in teaching and learning  supporting each other  forming around students’ usual pathway from primary to secondary school. These Communities set achievement challenges based on information about their students’ educational needs, and work together to achieve them. Communities of Learning are being rolled out over four years starting from late 2014. Communities in Blenheim and Mid-Bays (Auckland) have already signed off achievement challenges to lift their students’ achievement in areas such as reading, writing and maths.

42 Communities of Learning have currently been approved, which represent 333 schools and just a shade over 120,000 kids.

New Zealand Schools Report Ngā Kura o Aotearoa 2014 13 Expectations of schools in 2014 The Minister of Education is required under Section 87B of the Education Act 1989 to report to Parliament each year on the performance of the state schools sector. Through this New Zealand Schools report the public of New Zealand are kept informed about state schools’ operation and performance. The Government sets the policy framework for the operation of schools in New Zealand and monitors the standard of education delivered within the school network.

Boards of trustees are responsible for the running of schools and raising achievement in schools. A school’s operation and success depend on the cooperation and interaction of parents, teachers, principal and board. As Crown entities, schools manage their finances in accordance with the New Zealand equivalent of International Financial Reporting Standards and report annually on their financial position. Schools have specific requirements set out in the National Education Guidelines:  National Education Goals (NEGs)  national curriculum documents  specific curriculum statements  National Standards  National Administration Guidelines (NAGs).

The NEGs set out the teaching and learning responsibilities of schools (see below). The NAGs set out the principles of administration for school managers and boards of trustees in achieving the NEGs. National Education Goals (NEGs) NEG 1 The highest standards of achievement, through programmes which enable all students to realise their full potential as individuals, and to develop the values needed to become full members of New Zealand’s society. NEG 2 Equality of educational opportunity for all New Zealanders, by identifying and removing barriers to achievement. NEG 3 Development of the knowledge, understanding and skills needed by New Zealanders to compete successfully in the modern, ever-changing world.

NEG 4 A sound foundation in the early years for future learning and achievement through programmes which include support for parents in their vital role as their children’s first teachers. NEG 5 A broad education through a balanced curriculum covering essential learning areas. Priority should be given to the development of high levels of competence (knowledge and skills) in literacy and numeracy, science and technology and physical activity. NEG 6 Excellence achieved through the establishment of clear learning objectives, monitoring student performance against those objectives, and programmes to meet individual need.

NEG 7 Success in their learning for those with special needs by ensuring that they are identified and receive appropriate support. NEG 8 Access for students to a nationally and internationally recognised qualifications system to encourage a high level of participation in post-school education in New Zealand. NEG 9 Increased participation and success by Māori through the advancement of Māori education initiatives, including education in te reo Māori, consistent with the principles of the Treaty of Waitangi.

NEG 10 Respect for the diverse ethnic and cultural heritage of New Zealand people, with acknowledgement of the unique place of Māori, and New Zealand’s role in the Pacific and as a member of the international community of nations.

14 New Zealand Schools Report Ngā Kura o Aotearoa 2014 Evidence of the success of the schooling sector in meeting these requirements is gathered from a range of sources, including:  national-level monitoring  nationally standardised assessments  Education Review Office (ERO) reports and national evaluations  research and development initiatives  international assessments. Strategies to improve Māori achievement The Government develops strategies to focus the education sector on priority areas. Although these are not mandatory, schools are expected to take account of them in their practice.

The Government’s Māori education strategy remained in place for 2014: Ka Hikitia – Accelerating Success 2013 – 2017. Ka Hikitia: The Māori Education Strategy Ka Hikitia sets the direction for improving outcomes for and with Māori students and their parents and whānau. The vision is for Māori to enjoy and achieve educational success as Māori. This means ensuring Māori students’ identity, language and culture are valued and meaningfully integrated into their teaching and learning experiences. Schools have a significant contribution to make to achieving this as the only compulsory part of the education system.

Māori language in education Students learn te reo Māori in New Zealand schools by participating either in Māori-language classes in English- medium schools, or in Māori-medium education, where they learn te reo Māori in immersion settings. Schools are required to provide Māori language education to children whose parents request it and are required to note in their school Charter how they will cater to these types of requests. There is a growing expectation and support from non- Māori parents that Māori language will be provided to students of all ethnicities in New Zealand schools. Māori Language in Education is the first focus area within Ka Hikitia.

Ka Hikitia supports the importance of provision of Māori language for Māori students and as a mechanism to support identity, engagement and achievement. Ka Hikitia also expresses the education sector’s responsibilities relating to Māori language in terms of the Treaty of Waitangi, legislation and Te Rautaki Reo Māori (the Government’s Māori Language Strategy). The Ministry developed Tau Mai Te Reo – The Māori Language in Education Strategy 2013–2017 (Ministry of Education, 2013b) to strengthen and better co-ordinate Māori language in education activity.

Enrolments in Māori-medium education Students can be taught at varying levels of the curriculum in te reo Māori. For the purposes of this analysis, Māori- medium education is defined as students taught in Māori between 51% and 100% of the time. Two levels of Māori- language learning are included in this definition (Levels 1 and 2, see Table 1). The number of students in each level of learning in Māori-medium education has fluctuated over the last decade, with the number of students involved in Māori-medium education in 2014 increasing by 370 compared to 2013. Of the students engaged in Māori-medium education in 2014, 97% identified as Māori.

As at 1 July 2014, 282 schools offered Māori-medium education.

New Zealand Schools Report Ngā Kura o Aotearoa 2014 15 Table 1: All students involved in Levels 1–4a of Māori-language education, 2006–2014 Level of learning 2006 2007 2008 2009 2010 2011 2012 2013 2014 Level 1: 81–100% 12,235 11,991 11,774 11,634 11,738 11,818 11,816 12,028 12,704 Level 2: 51–80% 5,187 5,424 5,157 5,161 4,587 4,729 4,976 5,315 5,009 Sub-total 17,422 17,415 16,931 16,795 16,325 16,547 16,792 17,343 17,713 Level 3: 31–50% 5,450 5,154 4,795 4,649 4,904 4,807 4,936 4,843 4,884 Level 4(a): up to 30% 6,469 5,926 7,007 6,727 6,303 5,640 5,357 5,718 5,723 Definitions Kura kaupapa Māori A kura established under Section 155 of the Education Act 1989 as a kura supported by Te Rūnanganui o Ngā Kura Kaupapa Māori o Aotearoa, with the learning programmes based on te aho matua – Māori philosophies.

Kura Māori A kura established under Section 156 of the Education Act 1989 as a special character school delivering Māori-medium education. Kura teina Not a fully independent school established under Section 155 of the Education Act 1989, development/establishment stage, aligned to a kura tuakana (a kura kaupapa Māori that acts as a mentor with primary responsibility for the kura teina). Māori-language education All education that teaches Māori language skills and delivers education in and through te reo Māori. Māori medium Teaching that includes the use of te reo Māori. Students are taught curriculum subjects in both te reo Māori and English or in te reo Māori only.

Māori medium includes all Level 1 and 2 schools and classes. Level 1 and 2 classes teach through the medium of Māori from 51 to 100% of the time. Wharekura Secondary level kura.

Where to find out more

16 New Zealand Schools Report Ngā Kura o Aotearoa 2014 Strategies to improve Pasifika achievement Pasifika Education Plan The Pasifika Education Plan 2013–2017, sets out the Government’s strategic direction for improving Pasifika education outcomes over a five-year period. The Pasifika Education Plan takes a system-wide view of education to support Pasifika students achieve in early learning, schooling and tertiary education. It includes three of the Government’s Better Public Service targets with a particular focus on Pasifika parents, families and communities, recognising the pivotal role they play in supporting the educational outcomes of their children.

Over 2014/15, there have been positive shifts for Pasifika students. For example:  There are more Pasifika children participating in early childhood education.  Pasifika achievement against mathematics, reading and writing (National Standards) and NCEA Level 2 has increased.

 There is continual growth in the enrolment, participation, retention, and completion rates of Pasifika students in tertiary education. There are a range of initiatives being delivered in schools and in communities to support improving Pasifika achievement. Many are funded by the Ministry or by one of our education partner agencies. As an example, Pasifika PowerUP is a component of the Pasifika Education Plan. The PowerUP programme was developed for Pasifika and works across the education pipeline to meet the specific and variable needs of Pasifika communities. The programme supports Pasifika parents and families to champion their children’s learning so they can achieve greater educational success.

The programme is delivered by teachers, academic mentors and community champions, and runs four streams concurrently: parents, early learners, primary and secondary. In 2014/15, 15 PowerStations were operating.

A mid-term review of the Pasifika Education Plan was conducted by the Ministry 2015 in collaboration with partner agencies2 . The review focussed on progress against the Pasifika Education Plan targets, factors that contributed to significant shifts for Pasifika student achievement, challenges and management strategies. The Pasifika Education Plan mid-term review findings recommended that to improve education outcomes for Pasifika learners so they gain the skills and qualifications necessary to succeed at school, a multi-pronged approach is required to change the system, build capability and accelerate achievement:  Leverage off the strong achievement gains for Pasifika learners through the Better Public Service (BPS) education targets to improve system performance for Pasifika (e.g.

strong leadership, and shared ownership and accountability).3  Strengthen the focus on learners, their parents, families and communities at the centre of the education system which reinforces parents as first teachers and the pivotal role they play in lifting expectations and raising achievement. This creates positive long-term intergenerational benefits and role modelling for Pasifika learners.

2 Pasifika Education Plan partner agencies: Education Review Office, Tertiary Education Commission, Ministry of Pacific Island Affairs, Careers New Zealand, New Zealand Qualifications Authority, New Zealand Teachers Council and the New Zealand School Trustees Association 3 The Better Public Service targets have provided a clear focus for responding to the challenge to accelerate Pasifika achievement. For BPS 5 - 85% achievement of NCEA level 2 or equivalent in 2017 - the Ministry is working with 150 schools that have the greatest potential to lift NCEA 2 achievement, including many with high Pasifika populations.

The Ministry is actively intervening through a number of approaches including Youth Guarantee-Achievement, Retention and Transition (YG-ART), the Count Me In initiative, and providing access to Fees Free Places to target both Pasifika students inside the system and Pasifika young people outside of the system.

New Zealand Schools Report Ngā Kura o Aotearoa 2014 17  Embed culturally responsive and relational pedagogy that connects with Pasifika learners’ interests and knowledge including their identities, language and culture into a more student centred education system.  Prioritise a focus on primary schooling to increase the number of Pasifika learners achieving foundation skills in reading, writing, and mathematics (National Standards). Further, extend this focus to include science and technology to ensure Pasifika learners are well placed to actively participate in a global environment where these skills are increasingly in demand.

 Improve access to quality data and information to support monitoring, reporting and continuous improvement across the education system. For example Public Achievement Information and a wide range of resources, research and best practice evidence available to support schools through Te Kete Ipurangi4 or ‘Down the Back of the Chair’.5 4 Te Kete Ipurangi (TKI) - the online knowledge basket – the Ministry’s bilingual education portal. http://www.tki.org.nz 5 Down the Back of the Chair is the Ministry of Education’s catalogue of teaching and learning resources for schools. www.thechair.co.nz

18 New Zealand Schools Report Ngā Kura o Aotearoa 2014 CHAPTER 2:

New Zealand Schools Report Ngā Kura o Aotearoa 2014 19 Resourcing he majority of government funding in the schooling sector is delivered to educational institutions in the form of operational grants and teacher salaries. Aside from a few exceptions, where schools have raised funds and contributed financially themselves, the Crown owns all state non-integrated school buildings and land. Direct property funding for building new classrooms and funding for major capital works on school property are provided to state non-integrated schools or third parties on behalf of the Crown. Schools can also receive government funding by participating in various educational programmes or initiatives funded by the Government.

The Government also gives various kinds of in-kind resourcing, including software licensing, laptops for principals and teachers, other ICT support, and professional development. Government funding is not the only source of revenue. Schools raise funds locally from parents and communities. They also organise fairs, operate hostels and generate funds through enrolling international students. The following section focuses on the government resources provided to schools for delivering educational services. Government funding to schools The three main components of Government funding are:  operational funding, including property maintenance (on which the Government spent $1,365 million in 2014)  staffing ($3,570 million in 2014)  property capital works ($502 million in 2014).6 6 All government funding components are exclusive of GST.

The base year for real funding is 2004. The figure for property capital works is an estimate from cash payments made during 2014 and includes both capital and operating expenditure. T

20 New Zealand Schools Report Ngā Kura o Aotearoa 2014 Operational funding to schools Operational funding has several components, each with its own formulas and drivers. Detailed descriptions of each component, its drivers and formulas can be found in the Funding, Staffing and Allowance Handbook. Figure 27 shows that total operational funding has increased over the last 10 years. Figure 2: Nominal and real operational grants to schools, 2004–2014 Government funding for Operational Grants to schools has increased by 49.8% in nominal terms, or by 17.5% in real terms, between 2004 and 2014.

Funding for teacher salaries Teacher salaries are centrally funded, which means the Ministry of Education pays teachers on behalf of schools.

Some schools choose to employ additional teachers using their funding. Teacher salary funding is based on entitlement staffing, which is derived from the year-level rolls of the school. Detailed descriptions and the calculation process for teacher staffing entitlements can be found in the Funding, Staffing and Allowance Handbook. Government funding for teacher salaries increased by 49.6% in nominal terms, or by 17.3% in real terms, between 2004 and 2014.

7 This handbook is available electronically from the Ministry of Education website: www.education.govt.nz

New Zealand Schools Report Ngā Kura o Aotearoa 2014 21 Figure 3: Teacher salary funding to state and state-integrated schools, 2004–2014 Direct property funding to schools The Crown owns the buildings and land of state schools, and the proprietors own the buildings and land of state- integrated schools. Both Crown and proprietors must make sure that school property can accommodate current and future enrolments and meet health and safety requirements, and hence facilitate learning.

To help ensure this, the Ministry of Education and state schools agree on a five-year school property plan that allocates an amount of funding available to the school over this period. Schools can draw funding for property works each year in accordance with this plan. Figure 4 shows nominal and real direct property funding from 2004 to 2014. Figure 4: Direct property funding to schools, 2004–2014

22 New Zealand Schools Report Ngā Kura o Aotearoa 2014 Financial performance of New Zealand schools Introduction A school’s board of trustees is responsible for the management, organisation and administration of a school under Section 75 of the Education Act 1989. State and state-integrated schools provide their end-of-year financial statements to the Ministry of Education after the annual audit. Revenue The Government provides the large majority of schools’ income but schools supplement this income in various ways. The total revenue for state and integrated schools between 2011 and 2014, broken down by the main source categories, is presented in Table 2.

Table 2: School revenue, 2011–2014 Source of revenue 2011 2012 2013 2014 (estimate) Government grants ($) 5,840,883,598 5,930,648,391 5,999,416,889 6,162,599,632 Local funds ($) 477,146,207 493,439,564 501,460,669 519,325,262 International students ($) 110,404,546 106,628,534 104,045,633 114,017,671 Investments ($) 39,636,760 38,500,285 39,549,456 44,226,006 Hostels ($) 32,540,125 34,098,973 33,940,441 36,077,727 Other revenue ($) 112,851,698 105,962,760 112,991,697 93,307,701 Total revenue ($) 6,613,462,934 6,709,278,507 6,791,404,785 6,969,553,999 Proportion of government funding (%) 88.3% 88.4% 88.3% 88.4% Notes: Figures are GST exclusive.

The figures in this table for 2014 are estimates based on 2014 accounts available at the time of writing from 2,238 schools (92%) and previous years’ accounts for another 185 schools.

Local funds revenue generated by schools includes donations from parents, and community and fundraising activities, not excluding the cost of generating this revenue. Parental donations make up around 1.8% of all revenue for schools. In 2014, these sources represented 7% of all revenue. A further 2% of revenue is attributed to income from international students. Expenditure Operating a school incurs expenditure in a number of different areas. In 2014, total school expenditure was $6.9 billion, a 2.3% nominal increase from the previous year. Table 3 shows the breakdown of school expenditure by main expenditure categories.

New Zealand Schools Report Ngā Kura o Aotearoa 2014 23 Table 3: Expenditure of state and state-integrated schools, by main expenditure category, 2011–2014 Expenses 2011 ($) 2012 ($) 2013 ($) 2014 (est) ($) Learning resources 4,303,989,240 4,335,859,882 4,365,414,687 4,446,684,677 Administration 397,697,911 407,934,244 424,215,012 425,068,117 Property 1,371,005,690 1,423,674,477 1,433,250,898 1,506,638,211 Local funds 216,529,387 226,699,298 231,506,716 234,626,447 Depreciation 167,053,907 169,686,328 171,512,477 173,628,991 International students 50,804,311 52,068,023 51,511,132 56,946,117 Hostel 27,826,563 31,398,917 28,439,454 30,994,074 Loss on asset disposal 7,788,746 6,827,209 6,370,680 6,633,134 Amortisation of equitable leasehold interest 648,509 1,155,634 647,295 786,215 Amortisation of software 381,985 349,153 330,409 347,463 Finance costs 1,389,146 1,499,369 1,442,562 1,445,468 Impairment 2,423,292 1,008,713 2,657,437 2,125,564 Other expenses 27,051,145 18,499,565 21,787,751 9,300,930 Total expenditure 6,574,589,832 6,676,660,812 6,739,086,510 6,895,225,408 (Supp.) Percentage of schools with surplus, 2011-2014 Total Revenue ($) 6,613,773,423 6,709,278,507 6,791,404,785 6,969,553,999 Total expenditure 6,574,966,093 6,676,660,812 6,739,086,510 6,895,225,408 Surplus 38,807,330 32,617,695 52,318,275 74,328,591 Notes: Figures are GST exclusive.

Learning resources include teachers’ salaries, expenses for teachers’ aides, purchase of materials and equipment for learning and applying the curriculum, and expenses related to extracurricular activities. In 2014 learning resources comprised 64.5% of all school expenditure.

Administration expenses are comprised mostly of the salaries of principals and other administrators. Administrative expenses also include the expenses of boards of trustees and all communication- and audit-related expenses. Administration expenses comprised 6.2% of total school expenditure in 2014. Depreciation includes the depreciation on furniture, equipment and physical assets of schools, and comprised 2.5% of total school expenses in 2014. Expenses to raise funds from local sources include expenses for trading and fundraising activities. In 2014 these comprised 3.4% of total school expenditure.

Administration of international students comprised 0.8% of the total. Property expenditure includes the salaries of cleaners and caretakers, heating, light and water requirements, expenses related to the upkeep of school grounds, and repairs and maintenance of school sites. In 2014 property expenditure comprised 21.9% (when use of land and buildings is included) of the total expenditure of schools.

24 New Zealand Schools Report Ngā Kura o Aotearoa 2014 Indicators of sound financial management A range of financial indicators give some insight into the financial management and performance of schools, including whether they have an operating surplus, sufficient working capital for operations or increasing public equity. The overall performance of schools based on these indicators is discussed below. Operating surplus The operating surplus is calculated as the difference between total revenue and total expenditure (including depreciation on assets). In general, schools may have an operating surplus or sufficient reserves available to provide for any unexpected expenditure.

Schools achieved an estimated combined operating surplus of 1.1% of total revenue in 2014, compared with 0.8% in 2013.

Schools can record an operating deficit in one year due to unexpected or unforeseen expenditure. An operating surplus for multiple consecutive years is an indicator of sound financial management. Table 4 presents the proportion of schools that have reported one, two or three years of operating surplus during the last three years (2012–2014). Table 4: Percentage of schools with an operating surplus, 2012–2014 Surplus All schools (%) Primary schools (%) Secondary schools (%) Other schools (%) One year of operating surplus 28.3 29.4 24.0 21.6 Two years of operating surplus 31.2 30.9 33.4 21.6 Three years of operating surplus 26.5 25.5 29.3 48.7 Operating surplus in 2012 55.7 55.2 56.8 67.5 Operating surplus in 2013 55.6 54.3 59.3 79.0 Operating surplus in 2014 59.0 57.9 63.4 65.8 Around 55%−60% of all schools have operated in surplus in each of the last three years.

Secondary schools were more likely to have a surplus than primary schools.

Working capital The level of working capital is an indicator of a school’s ability to operate financially and meet debts in the short term. Working capital is normally measured in one of two ways: as a dollar value or as a ratio between current assets and current liabilities. Table 5 presents the working capital ratios of schools in 2014. Having a working capital ratio of at least 1:1 means that a school is able to pay its short-term debts and operate with some flexibility. For example, if the working capital ratio is 1:35, this means that for every dollar of current liabilities a school owes, they have $1.35 worth of current assets to meet their short-term financial obligations.

Table 5: Percentage of schools in different working capital ratio bands, 2014 Working capital ratio All schools (%) Primary schools (%) Secondary schools (%) Other schools (%) < 1.0 6.0 5.3 9.3 2.6 < 2.0 41.5 38.8 56.2 7.9 < 3.0 26.6 27.8 20.5 34.2 3.0 + 26.0 28.2 14.0 55.3

New Zealand Schools Report Ngā Kura o Aotearoa 2014 25 Table 5 shows that 94% of all state and state-integrated schools have at least enough current assets to cover their short-term debts. Public equity Public equity represents the net worth of schools and is calculated as the difference between total assets and total liabilities.

Schools in a healthy financial position generally show increasing levels of public equity over time. Across all state and state-integrated schools, public equity has increased each year for the past six years. Public equity was $1,944 million in 2014, which is a 5.1% increase from the previous year. Table 6 shows the trends in total public equity of state and state-integrated schools over the last three years. Table 7 shows the proportion of schools that have contributed to this increase in public equity.

Table 6: Public equity trends, 2012–2014 Year All schools ($) Primary schools ($) Secondary schools ($) Other schools ($) 2012 1,789,674,135 943,757,767 785,884,389 60,031,979 2013 1,848,722,410 965,845,441 819,233,526 63,643,443 2014 (est.) 1,943,752,933 1,007,499,310 867,147,853 69,105,770 Table 7: Percentage of schools with an increase in public equity, 2014 All schools (%) Primary schools (%) Secondary schools (%) Other schools (%) Equity increase in 2013 58.9 57.8 61.7 84.4 Equity increase in 2014 62.4 61.7 65.6 65.6 Equity increase in 2013 and 2014 40.8 39.4 45.6 62.5 No increase in equity for 2014 37.6 38.3 34.4 34.4 2014 decile recalculation Deciles for all state and state-integrated schools were recalculated in 2014 following the latest Census of Population and Dwellings, and resulted in funding changes for some schools.

The recalculation normally takes place every five years, following the Census, but the Canterbury earthquakes delayed the last Census by two years. An integral part of the recalculation process is the scope for schools to seek a review of their decile, following the results of the decile recalculation.

As a result of this decile recalculation and review:  829 schools moved to a lower decile and had their funding for 2015 increased  841 schools had no change in their decile  736 schools moved to a higher decile, and will receive decreased funding over time. Decile-related funding is a small proportion of schools operational grants with $152 million (11.2%) of operations funding to schools being decile related in 2014.

26 New Zealand Schools Report Ngā Kura o Aotearoa 2014 Deciles are a measure of the socio-economic position of a school’s student community relative to other schools throughout the country.

For example, decile 1 schools are the 10% of schools with the highest proportion of students from low socio-economic communities, whereas decile 10 schools are the 10% of schools with the lowest proportion of these students. A school's decile does not reflect the quality of education the school provides. Deciles are used to provide funding to state and state-integrated schools to enable them to overcome the barriers to learning faced by students from lower socio-economic communities. The lower the school’s decile, the more funding they receive. Deciles might change when the Ministry of Education recalculates them in the year following the Census.

In the period between the recalculation of deciles, schools are able to seek a review of their deciles in the situations where the socio-economic profile of their community has changed. These reviews are held annually. If the review application is successful, the new, lower, decile rating and subsequent increase in funding will take effect at the beginning of the next school year. If the application is not successful, the school is not disadvantaged because of the review. Deciles cannot increase as the result of a decile review. The school’s decile will simply remain as it is. Digital technologies for teaching and learning Digital technologies are everywhere and they are bringing many opportunities for our schools, affecting what, where and how education is delivered.

For this reason, supporting schools to make the most of new technologies is a significant part of the Ministry’s work programme.

Connecting schools to ultra-fast broadband By the end of 2016 all schools will have access to the technology available to provide high-quality, high-capacity, ultra-fast internet access for teaching and learning. Connected classrooms offer today’s students and teachers easier, more affordable, and faster access to information, teaching and learning resources, peers, experts and the wider community. N4L managed network The Ministry of Education is working with the Crown-owned company Network for Learning (N4L) to develop and operate a managed network for schools and to provide a range of educational content and services to ensure that all students can benefit from the opportunities provided by digital technologies.

As at 31 December 2014, 390,640 students and 26,865 teachers were connected to the Managed Network.

Connecting with technology  Schools are using digital devices such as laptops and tablets to quickly, easily and cheaply connect students with a huge and ever-growing number of educational tools and resources and subject-matter experts over the internet.  Teachers are using online networks and social media to connect with other schools and peers who can help them adapt their teaching practices to make the most of digital tools.  Students are using digital technologies to connect with other students across the country and across the world, and to engage in self-directed learning in areas of personal interest and expertise.

 Parents, families and whānau are forming stronger connections with schools using digital services such as social networks, websites and online surveys.

 Many of us use technology to connect to information and learning whenever and wherever we choose.

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