Kelvin Davis

Wellington, July 11 NZPA - Labour says changes to education funding will punish schools with high drop out rates, especially those in poorer areas.

The Government changed how schools are funded tying it to quarterly roll counts rather than a yearly estimate and Cabinet papers released last week highlighted the impact on low decile schools would be worse.

Today Labour MP Kelvin Davis said schools with a higher rate of students dropping out, generally lower decile schools, would be hit financially. Those who catered for poorer families, including many Maori, would be hurt.

"This policy will have an perverse effect. The funding cuts will frustrate the ability of these schools to support Maori students who most need it. These schools should actually be receiving more funding, not less, so that they can do more to retain students."

In a speech to the New Zealand School Trustees Association conference yesterday, Education Minister Anne Tolley said the May budget allocated an extra $1.4 billion to education over four years -- which meant a 4 percent increase in operational funding for schools.

She also highlighted the Youth Guarantee policy which gives training and education for youth not enrolled in school.