Access to early childhood education (ECE) was a focus of yesterday's Budget, though the announcement failed to bring relief to services struggling with increased operating costs.
An extra $550 million, over the next four years, would go to the sector to improve access and increase participation for Maori, Pasifika and children from low-income families.
Of that, $416.7 million will be used to meet increased demand for services; $61 million to boost funding rates to alleviate cost rises; and $21.5 million to extend the equity fund which provides additional resources to, and encourages the establishment of, services with high numbers of children from priority groups.
Dunedin Community Childcare Association director Jo Ellis said the announcement was "quite surprising" as the increase was "significant".
However, the funding meant a 1% increase in funding rates at a time the association was facing a 4% increase in operating costs after funding for centres with fully qualified staff was cut in the last Budget.
"It brings up big social issues for us," she said.
Families would still face fee increases.
Education cash
• $118.1 million increase over four years for rises in operational costs.
• $550.3 million over four years to early childhood education.
• $66.5 million spent over four years to build trades and services academies.
• $59.7 million over four years in new operating and capital funding for school property and $60 million to build new schools and upgrade buildings.
• $12 million over four years to lift Maori achievement and $17 million to extend Te Kotahitanga programme to an extra 20 schools.
