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

2. 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

3. 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

4. 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

5. 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 % 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

6. Questions?