more ability for schools to use their resources to best meet the learning needs and wellbeing of their students an easier mechanism for schools to collaborate and resources, including through Communities of Learning, to improve learning outcomes, and clear away current administrative barriers a simpler funding system with less administrative particularly those associated with the banking staffing system more transparent funding across the system and better supported financial management in schools. The Global Budget concept has been informed by alternative ways of delivering funding to schools in Australia, particularly Western Australia and Victoria. Improvements in student outcomes have been linked to greater school autonomy including the ability to manage their budgets to address their individual school’s needs. Current arrangements Funding is currently delivered to state and state-integrated schools in the form of a cash operational grant and staffing entitlement. Staffing entitlement is a quantum of full-time teacher equivalents (FTTEs) for which the Crown directly meets the salary cost. Staffing entitlement generally accounts for around 70 percent of a school’s total funding. Where schools employ teachers above their staffing entitlement these costs are met from operational grant funding and locally raised funds. Schools also employ non-teaching staff (e.g. caretakers, administrators and teacher aides) using their operational grant, as well as meet other costs such as equipment and utilities. The staffing entitlement mechanism enables schools considerable flexibility in the mix of teachers they employ. Schools are not required to manage the actual cost of teaching staff or the financial risk associated with the turnover of teaching staff and with staff progressing up salary scales over time - apart from those teachers employed through operational grant funding. This would not change under the Global Budget proposal; the Crown would continue to manage these risks. Managing the financial uncertainty of staff turnover would be particularly challenging for small schools, which are a significant feature of the New Zealand school system. There is a trade-off between protecting schools from financial risk and how the funding system supports equity and encourages schools to develop an overall staffing profile with a mix of abilities, skills and experience. The Global Budget concept would not change this. Staffing entitlement can only be used to employ teachers who hold a practising certificate or a limited authority to teach. Staffing entitlement cannot be used to employ non-teaching staff for
Objectives of funding delivery system Current approach Global Budget concept Autonomy and flexibility in resourcing decisions Schools leaders have control over staffing decisions. Staffing entitlement covers the payment of qualified teachers only. Operational grants must be used for non teaching and teachers employed above staffing entitlement. Schools leaders retain control over staffing decisions. The Global Budget would provide greater flexibility to make decisions about the balance between teaching staffing, expertise and other inputs. Support schools’ collaboration and sharing of resources Currently there is a difficult administrative process for transferring staffing entitlements between schools, which hinders the sharing of expertise, although some informal ‘barter’ arrangements are occurring. The delivery of all funding through a monetary value would make it administratively easier for schools to collaborate and share resources. This could be useful for sharing both teaching and non teaching resources Simple to administer for schools and the Crown Staffing entitlement reduces the complexity of financial planning and management for schools (although they have to manage teacher entitlement). However, it is more complicated for the Crown due to the need to account for teachers employed under a range of different employment contexts against the entitlement. This is more difficult than accounting for dollar salary values. As all costs are translated into a dollar value this means that it is simpler to transfer costs between schools. It is also easier to understand the status of the whole budget at all times. Staff would continue to be paid through the central payroll system. Transparency in approach Resourcing through staffing entitlement may be working against equity objectives, leading to a disproportionate share of more experienced teachers being employed by schools which are viewed as better places to work (without them having to bear the additional costs). The notional rate for all teachers will be more transparent as schools with similar profiles and needs will receive similar budget allocations. Equity issues around staffing choices are not addressed in the Global Budget