Many in Otago's education sector have welcomed the 2009 Budget, but it has also been labelled "underwhelming".
The Government has committed to improving front-line education services by allocating $1.68 billion to the sector during the next four years.
Education Minister Anne Tolley said the Government had prioritised education funding so dollars were spent where they would make the biggest difference.
The package included $523.3 million in operating and capital funding over four years to expand and future-proof existing schools and build new ones.
Additional front-line funding for raising achievement in schools included $80.1 million for day-to-day school operations, $36 million to support literacy and numeracy, $16 million to fight truancy, and $34 million to improve schools' access to high-speed broadband.
Funding to improve education for pupils with special needs and behavioural issues will be boosted, with $51 million extra for Ongoing Reviewable Resourcing Schemes and $8 million to help manage disruptive pupils.
Mrs Tolley said the budget secured funding for several significant cost pressures.
This included $169.1 million in 2009/10 to pay increases in teacher salaries, and $70 million over four years to cover salary increases for school caretakers, cleaners and ground staff.
Early childhood education and care will receive nearly $69.7 million over the next four years aimed at making the 20 hours free early childhood education scheme more accessible.
At present, the 20 hours free scheme is only available to 3- and 4-year-olds.
From July 1, 2010, 5-year-olds will also be eligible so parents who do not want their children to begin compulsory schooling until the age of 6 can keep them in early childhood education centres until then.
The scheme has also been made available in kohanga reo and play centres, and the six-hour daily cap on the time children can spend at centres has been removed.
"The removal of the six-hour daily cap will provide greater choice and flexibility to parents about when and how they take up 20 hours of early childhood education," she said.
"Savings have been achieved by reducing the amount of money tied up in the bureaucracy, reducing expenditure in lower-value areas such as community education hobby courses and postponing some initiatives until economic conditions improve," Mrs Tolley said.
Otago Secondary Principals Association chairman Philip Craigie and Otago Primary Principals Association president Steve Hayward were generally pleased with the funding for education.
Mr Craigie said increased funding for school buildings, pupils with special needs and behavioural issues, and staff salaries was long overdue.
But Mr Hayward said he would like to have seen more funding for teacher aides and support staff.
"I give it the big thumbs-up.But now we have to hope the Government delivers it," he said.
However, Early Childhood Council chief executive officer Sarah Farquhar said the budget was "not a very brave announcement" in relation to the early childhood sector.
"It's very underwhelming. It doesn't resolve some of the issues that early childhood organisations have with the 20 hours free policy."
Dr Farquhar said she would like to have seen money put into training more staff to address the chronic shortage of qualified teachers in the sector.
She also wanted to see cuts to the costs of administering the 20 hours free scheme.
The sums
$69.7 million for early childhood education.
$523.3 million in operating and capital funding over four years to expand and future-proof existing schools and build new ones.
$80.1 million in additional funding for day-to-day school operations. $36 million to support literacy and numeracy.
$16 million to fight truancy.
$34 million to improve school access to high-speed broadband.
$169.1 million for increases in teacher salaries.
$70 million to cover salary increases for school caretakers, cleaners and ground staff.
