A Guide to Ministry of Education Funding: A Handy Reminder for Schools
Effective school management requires a solid understanding of the funding available to support both everyday operations and special projects. The Ministry of Education provides various types of funding to help schools meet their financial needs, improve resources, and support students. Each funding stream has a specific purpose and is allocated based on different criteria, such as student numbers, school size, and specific educational requirements.
By staying informed about the specifics of each funding type, schools can ensure they are fully utilising the resources available to them. Below we have provided a brief summary of the most common types of Ministry of Education funding and how they are allocated to schools.
Operational grant: The operational grant is the primary source of funding for schools. It covers the day-to-day running costs of a school, including teaching resources, utilities, and administration. The amount allocated is based on the school’s student roll and the equity index, which factors in the socioeconomic background of students. The operational grant is paid to schools quarterly at the beginning of January, April, July, and October.
Teacher aide funding (ORS, IRF, SEG, etc.): This funding helps schools cover the costs of employing teacher aides to support students with higher needs. The level of funding is determined by the assessed needs of the students. Schools must apply for this funding for eligible students, and it is also paid quarterly, in Feb, May, August, and November.
ESOL funding: ESOL funding is available to help schools support students whose first language is not English. This funding assists with the costs associated with providing English language instruction to migrant and refugee students, as well as New Zealand-born students of migrant parents. The school must apply for this funding for eligible students, and it is paid twice a year in April and September.
Furniture & Equipment grant: The Furniture and Equipment grant a capital contribution to assist with the upgrading of furniture & equipment within a school. The level of funding is determined by the physical size of the school and is paid out in each 5-year period. Two-thirds is paid out in the first year of the 5-year cycle and the final third is paid out in year three. This funding is recorded on the balance sheet, not as income.
Capital Works (5YA) Funding: Capital Works funding, also known as 5YA (Five-Year Agreement) funding, is provided for upgrades to school land and buildings, and is to be used over a 5-year period. The amount of funding is determined by the Ministry of Education based on the assessed needs of the school and is set out in the school’s 10-Year Property Plan. This funding is recorded on the balance sheet, not as income.
Relief teacher funding: Schools can apply for this funding to cover the costs of hiring relief teachers when staff members are on extended sick leave, serving on a jury, or undertaking higher duties. This funding ensures that schools can continue to operate smoothly in the absence of key staff.
