The changes to the teacher-pupil funding ratios were to have saved the Government about $174 million over four years, of which $60 million was going to be invested in improving teaching quality and professional leadership.
The U-turn left a net shortfall of $114 million over the four-year Budget forecast period.
During a visit to Dunedin yesterday, Education Minister Hekia Parata told the Otago Daily Times the ministry was still looking for cost-cutting measures to help reduce the funding shortfall.
As to what those cuts may affect, she was unable to say.
However, the ministry was still firmly focused on raising pupil achievement and getting five out of five children succeeding, and continued to believe that investing in quality teaching and professional leadership was the best way to achieve it, she said.
Ms Parata was in Dunedin to officially open Bathgate Park School following the merger of Forbury School and Macandrew Intermediate.
She acknowledged the "heartache and all the challenges" the school had gone through during the merger process, and praised the community's support in bringing the merger to fruition.
"A school is nothing without the community.
"We can have the best equipment and the best technology, but without community support ...
"I feel hugely optimistic about Bathgate Park School."
When asked about the possibility of similar mergers of Dunedin schools in the future, Ms Parata said it was dependent on the city's population.
"Schools reflect the needs of the community.
"We [the ministry] try to be as responsive as possible to the needs of the community."
While in Dunedin, Ms Parata also attended an education breakfast at Otago Museum to celebrate Matariki, and the 2012 New Zealand International Science Festival at the University Plaza yesterday afternoon.
Today she will speak at the New Zealand Childcare Association Annual Conference at the University of Otago.
