The experience of New Zealand ECE and the Recession The experience of New Zealand December 18

ECE in New Zealand Situation: 300% increase in spending since 2004/05: up $700 million Another $200 million increase by 2014 Reasons: Policy to increase teacher numbers and fund more of the cost High birth rates Children start earlier Children attend more hours per week But… no significant change to overall participation levels

The recession in New Zealand Impacts: Unemployment doubled Finance stopped Increasing government spending a problem 2009 forecast: debt to increase to 60% of GDP in 2020, 220% by 2050 Response: Jobs and growth Lift long-term economic performance: tax, jobs, investment Control public spending, debt

ECE and economic growth: evidence ECE can have impressive economic payoffs: “Early skills breed later skills because early learning begets later learning… investment in the young is warranted” – Heckman and Masterov, 2007. But… It takes decades to get the gains The short-term payoffs from ECE are smaller All ECE costs are incurred up front

Impacts for ECE Government is spending more on ECE in 2010/11 than it planned to in 2009, and more than it has ever spent on ECE before Budget 2009: Extended 20 Hours ECE Inflation adjustment Reduced professional development funding Deferred funding for adult: child ratio change Budget 2010: New targeted participation initiatives Inflation adjustment Removed extra funding to centres with 80-100% qualified staff Eased teacher supply: focussed grants, easier for more teachers to work in ECE Government has kept funding extra ECE provision and more costly provision – but will no longer make automatic funding increases

Questions?