Treasury said putting more money into private schools would
not solve their problems and advised against it.
In the May budget, private schools received their first
government funding increase in a decade.
A Treasury briefing paper said private schools were facing
falling rolls and financial problems, The Dominion Post
reported.
"Struggling schools may apply for integration into the state
sector and ... students may migrate into state schools where
they attract higher per-student subsidies.
"Too tight an approach to independent school funding could
represent a false economy for the Crown."
Education Minister Anne Tolley said the spending was needed
to make schools more accessible to more parents.
"Treasury is entitled to its view, but the Government makes
policy, not Treasury."
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