Wednesday, 27 April 2011

Government funded ECE for the good of society or for private good?

Tohua nga whakatipuranga ki te inu I te puna o te Matauranga.
Kia hora ai to whakaruruhau o te ora ki runga I te iwi
Kia kaha, kia toa, kia manawanui

“Nurture the young and teach them to drink from the fountain of knowledge. For with them lies your protection, your strength and the destiny of your people.”
Up until the 1980s, New Zealand government followed a Western liberal tradition espousing the value of the educated individual as ‘good’ and a means through which freedom was likely to be achieved. Therefore it could be assumed that education would be adequately funded and beyond party politics. The past few decades have witnessed major changes as Government has implemented policy, aimed at reforming ECE (Aitken & Kennedy, 2007; Farquhar, 2008).
During the 1980s, strongly influenced by Treasury, Government introduced solutions such as deregulation, corporatisation and privatisation to solve the economic crisis of that time. With this shift towards neo-liberal thinking, the provision of education came to be viewed as a commercial enterprise as evidenced by the introduction of policies such as ‘Bulk Funding’ in 1990 and ‘20 Free Hours’ in 2007.  Although Bulk Funding proposed by the ‘Meade Report, endeavoured to address inequities between the various ECE services, opponents argued that it did not encourage quality ECE because Government funding per child, rather than for cost of services allowed centre managers a certain amount of freedom to determine their spending priorities. Some centres operating for profit saw no incentive to employ any more than minimum staff requirements. Also, this system did not bind government to sustaining or increasing funding levels, as bulk funding was not necessarily tied to expenses (Mitchell, 2001; 2005).
According to Marshall (2000) neoliberalism is the belief that the free market is the best means for determining economic and individual outcomes. In terms of education this involves the assumption that competition between ECE providers will result in quality services and public resources being used more efficiently. Policies such as de-zoning allow people (who are constructed as consumers) a choice of ECE provision to suit their own interests. However the free market provision of ECE has not necessarily provided equitably for marginalised or disadvantaged groups to exercise freedom of choice, as their access may have been inhibited due to cost of ECE provision and location of ECE services.
Participation for children in ECE is still a priority and despite the 2010 budget cuts, Government proposes to inject $91 Million to increase participation for up to 3,500 children who are currently missing out, in particular Maori, Pacifika and children from low socio-economic status or remote rural communities (New Zealand Government, 2010). Te One (2010) believes although this initiative is welcome it should not come at the expense of services in which 85% of Pasifika and 91% of Māori children are already enrolled; such as Free Kindergartens which operate in low income areas, with qualified teaching staff.
Australia and New Zealand’s governments have demonstrated a free market approach through a “gradual reduction of publicly funded and community based services” while allowing an increasing investment in the provision of ECE services by the private and corporate sector (Aitken & Kennedy, 2007, p. 176). Additionally, this theoretical shift in thinking influenced a change in emphasis of administration in education to one of managerialism as witnessed by the dismantling of the Department of Education in 1989. Those in authority are viewed as managers whose responsibility it is to deliver appropriate outcomes overseen by the Government’s Education Review Office [ERO] (Smith, 2002).
The rapid increase in a ‘for-profit’ ECE sector has been further facilitated by the implementation in 2007 of Government’s funding of  ’20 Free Hours’ policy which no longer distinguishes between private or public ECE services, provided licensing requirements are met ( Marshall, 2000; Mitchell, 2002). Extending the 20 hours ECE policy to include children in parent-led services such as Kohanga Reo and Playcentre and children aged 5 still attending, is a surprising development in light of the 2010 budget cuts. This could indicate Government’s motive as acting equitably in endorsing the value of parent-led ECE services but it could also signify its disregard for the recognition of teacher qualifications as an important factor in providing quality ECE service.
If new right ideology drives Government’s education policy, we need to critically examine whose interests are being represented. Marshall, Coxon, Jenkins & Jones, (2000) warn of the changing ideals of education from that of emancipation, training for leadership and personal autonomy to an education system for equipping people with skills to contribute to society and its place in the global market. This requires a two way relationship if Government is to maintain economic wellbeing, security and power for itself and the wellbeing of its people. Therefore to achieve its goals, Government influences people through education which has become a “strategic factor in the efficiency of national economic policies” (Marshall, Coxon, Jenkins & Jones, 2000, p. 16).
This raises the question of whether the ‘good of society’ is viewed mainly in economic terms. The Executive Summary (2006) of the Organisation for Economic Co-operation and Development [OECD] of which New Zealand is a member, reveal the reasons why countries invest in ECE. Economic prosperity is deemed to be dependent on a high proportion of the population being employed, therefore increasing women’s participation in the labour force can improve the problem of a diminishing labour force due to an aging population and falling fertility rates. Other reasons for investment in ECE include addressing problems of children’s poverty and educational disadvantage and providing better support for the integration of immigrant’s children into the education system (OECD, 2006).
Globalisation, which can be understood as moving towards a global order or homogenisation of economy, technology, culture and politics, has affected most industries, including early childhood education (Marshall, Coxon, Jenkins & Jones, 2000). Many countries are realising the value of investing in ECE, particularly those in the OECD, as human capital is viewed as supporting the expansion of their global competitiveness and economic growth. New Zealand has invested much to create a world class ECE by international standards of quality, with the highest rates for participation (Special Interest Group, 2009). But now Government appears to have exhausted its purse or perhaps its priorities have shifted.
Community providers such as Kindergarten have always endeavoured to provide a quality ECE for children and now more than ever they will need to compete by marketing the learning experience to parents to maintain their share of government funding. Solutions such as extending hours and marketing the provision of a ‘free’ quality education are some of the strategies Kindergartens have already used to compete for children’s enrolment. However these solutions may no longer be enough in light of the recent budget cuts. According to Smith (2002) we are now witnessing a further attack on the more liberal ideology of education as a public good. The question is, What can be done about this?
 
Aitken, a., & Kennedy, A. (2007). Critical issues for the early childhood profession. In L. Keesing-Styles & H. Hedges (Eds.), Theorising early childhood practice: Emerging dialogue. (pp. 165-185). Castle Hill, Australia: Pademelon Press.
Farquhar, S. (2008).Early childhood care and education: From advocacy to institution. In V. Carpenter, J. Jesson, P. Roberts, & A. Stevenson (Eds.), Ngā kaupapa here: Connections and contradictions in education (pp. 45-56). Australia: Cengage Learning.
Marshall, J., Coxon, E., Jenkins, K., & Jones, A. (2000). Politics, Policy Pedagogy: Education in Aotearoa-New Zealand. Palmerston North, New Zealand: Dunmore Press.
Marshall, J. (2000). Bright futures and the knowledge society. In J. Marshall, E. Coxon, K. Jenkins, & A. Jones (Eds.), Politics, Policy Pedagogy: Education in Aotearoa-New Zealand (pp. 187-215). Palmerston North, New Zealand: Dunmore Press.
Mitchell, L. (2001). Bulk funding of New Zealand’s early childhood services-An analysis of the impact. Wellington, New Zealand: NZCER.
Mitchell, L. (2002). Differences between community owned and privately owned early childhood centres: A review of evidence. Retrieved April, 2011, from http://www.nzcer.org.nz/pdfs/11743.pdf
Mitchell, L. (2005). Policy shifts in early childhood education: past lessons, new directions. In J. Codd, & J. Sullivan (Eds.), Education policy directions in Aotearoa New Zealand (pp. 175-198). Auckland, New Zealand: Thomson Dunmore Press.
New Zealand Government: Waitakere and Northland first to benefit from $91.8 million ECE boost. (2010, August 20). M2 Presswire. Retrieved April, 2011, from Proquest Central. (Document ID: 745759324)
OECD, (2006). Starting strong 11: Early childhood education and care. Paris, France: Organisation for Economic and Community Development.
Smith, M. (2002). Globalisation and the incorporation of education. Retrieved February 28, 2011, from http://www.infed.org/biblio/globalization_and_education.htm
Special Interest Group. (2009). Leading early childhood researchers concerned about threats to quality early education. New Zealand Association for Research in Education: Te Hunga Rangahau Mātuaranga O Aotearoa. Retrieved April, 27, 2011 from http://www.nzare.org.nz/pdfs/ece/ECEPressReleaseDec2009.pdf
 Te One, S. (2010). Early childhood education-New pathways to an uncertain future. Retrieved April 26, 2011, from http://www.acya.org.nz/site_resources/library/Documents/Reports_to_UN/CYA_2010/Early_Childhood_Education.pdf


Reference for web link:
Organisation for Economic co-operation and Development, (n.d.) Retrieved April, 2011, from http://www.oecd.org/home/0,2987,en_2649_201185_1_1_1_1_1,00.html

Monday, 18 April 2011

Government funding of ECE pre-budget and implementation of budget cuts.

Click this picture to see the cut
National’s 2010 budget, aimed at bringing ECE spending under control has now been implemented as of February 2011.
The last decade has witnessed an unprecedented increase in Government expenditure on ECE in New Zealand. Government Statistics reveal the total cost rising from $413 million in 2002, to *$1.354 billion per annum (year ended June 2010).
Two of the most significant expenses included in the total* year ended June 2010 were:
·       Children’s ECE participation at $1.148 billion. (Cost of 20 hours funding to ECE providers, equity funding,  correspondence school and payments to license exempt services).
·       $150.2 million for childcare subsidy from Social Development.
According to NZEI the government will be cutting over $400 million from ECE services during the next few years. Most of the savings (approximately $295 million) will be made by cutting back the two highest funding rates for ECE centres that employ between 80-100% qualified teachers. This will affect approximately 2000 ECE services which cater for 93,000 children.
Prior to February 2011, ECE providers received government funding for employment of staff at differing rates, depending on their proportion of qualified teachers. Those employing between 80 - 100% qualified and registered teachers such as kindergartens, received the highest rates. This rate recognised the costs of employing 100% qualified teachers and provided an incentive for others to reach Labour’s strategic plan target of 100% qualified teachers by 2012. As a result of the 2010 budget the two highest rates have now been removed altogether and funding will only be paid for up to 80% of qualified staff.
Others cuts include scrapping the annual $4,300 PRT grant paid to centres who have more than 80% fully qualified teachers. This grant was used by centres to support provisionally registered teachers during their two years induction programme to become registered. According to New Zealand Kindergarten’s [NZK] chief executive Claire Wells there are at present 250 provisionally registered teachers in Kindergartens throughout New Zealand, which will equate to a further loss to Kindergartens of just over 1 million in funding. She argues that cutting back on spending due to the shortfall, could jeopardise the quality of their service, or if costs are passed on to parents, either way it could mean that children miss out. General Manager Bronwen Bertram said Heretaunga Kindergarten Association would lose $500,000 as a result of the budget cuts, but remain committed to retaining all qualified staff. She said lost revenue would be made up by cutting operational costs such as maintenance, professional development and resources (Personal communication, March 2011).
Government’s funding of ECE has become a complicated process as it endeavours to provide for the wide diversity of ECE services including education and care centres, home-based services, kindergartens, kōhanga reo, playgroups, and playcentres. The ECE funding rates for licensed services are subsidies that reflect teaching salary costs and four components of operating costs (operating, capital, property operating and non-teaching staff costs).
For many centres, particularly kindergartens that have traditionally always employed fully qualified teachers, the cuts will mean huge reductions to their funding. NZK chief executive Clare Wells estimates a $12 Million reduction to the annual NZ kindergarten budget. She points out that Kindergarten is a community based non-profit organisation which relies on government to meet most of their operational costs to support a high quality education. She believes the government is effectively saying 80% qualified teachers is sufficient to provide quality and yet research points to teacher qualifications as an important factor in providing quality ECE (Carr & Mitchell, n.d.).  This appears to be contradictory to the findings of the Minister of Education’s advisory group (2010, p. 9). This group was set up to consider future policy settings around the teaching workforce and stated in its report last year that "effective teaching is recognised as the most important lever for improving educational outcomes for students."
In a press release dated 31st January 2011, Minister of Education Anne Tolley announced that the National Government will invest the highest amount any government has ever spent on ECE. She reiterates National’s commitment to high quality ECE and greater participation for all children while also highlighting the need to bring spending under control due to escalating costs which has seen ECE funding treble over the last five years. In justifying the need to cut funding, Anne Tolley also mentions disproportionate government spending between the average taxpayer subsidised payment per ECE child of $7600, compared with the cost per primary school pupil at $5,528 and high school at $6733. (This comparison is rather misleading as the main difference is the cost of salaries for the higher adult to child ratios necessary in early childhood care and education; for children under 2 ½ years 1:4 and over 2 ½ at 1:10 for full day, or 1:14 for sessional) as recommended by the Ministry of Education.  
The ECE funding cuts may severely affect non-profit services which have for over a century provided for the 1939 Labour Government’s objective penned by Director of Education C. E Beeby, “that every child, whatever his level of ability, whether he be rich or poor, whether he live in town or country, has a right as a citizen to a free education of the kind for which he is best fitted and to the fullest extent of his powers (May & Mitchel, 2009). Will Government continue to deliver a free quality early childhood education for children in New Zealand?  How will this compare  with early childhood services in business for profit?


Carr, M., & Mitchell, L. (n.d). Ocassional paper: Qualified teachers in early childhood centres: Do we need them? Retrieved April, 2011, from http://www.nzkindergarten.org.nz/announcementretrieve.aspx?id=33643
May, H., & Mitchell, L. (2009). Strengthening community-based early childhood education in Aotearoa New Zealand: Report of the quality public early childhood education project. Retrieved from http://www.nzei.org.nz/site/nzeite/files/ECE/Report_QPECE_project_web_2+JD.pdf

Reference for web links:
Early Childhood Education funding at record $1.4 billion, (2011). Retrieved April, 2011, from http://www.scoop.co.nz/stories/PA1101/S00168/early-childhood-education-funding-at-record-14-billion.htm
Early childhood education statistics, (n.d.). Retrieved April, 2011, from http://www.educationcounts.govt.nz/statistics/ece
Key messages and facts, (n.d.). Retrieved April, 2011, from http://www.nzei.org.nz/site/nzeite/files/ECE/Key%20Message%20and%20Facts.pdf
Ministry of Education, (n.d.). retrieved April, 2011, from http://www.lead.ece.govt.nz/ManagementInformation/RegulatoryFrameworkForECEServices/RegulatoryReview20042008/AdultChildRatios/AdultChildRatiosSummaryOf2005Feedback.aspx
Ministry of Education, (2010). A vision for the teaching profession. Rertieved April, 2011, from http://www.minedu.govt.nz/~/media/MinEdu/Files/TheMinistry/Consultation/WorkforceAdvisoryGroup/WorkforceAdvisoryGroupFinalReportPDF.pdf
Wells, C. (2009). More funding cuts to kindergartens. Retrieved April, 2011, http://www.nzkindergarten.org.nz/AnnouncementRetrieve.aspx?ID=42408
Wells, C. (2009). Children lose out in budget cutbacks. Retrieved April, 2011, from http://www.nzkindergarten.org.nz/AnnouncementRetrieve.aspx?ID=32702