MPs want review of cash grants for isolated schools

A parliamentary committee has called on the Government to review unfair funding of isolated rural schools.

The education select committee said changes to the funding formula last year had reduced the grants rural schools received to cover the extra costs imposed by isolation.

Until 2001, 460 schools were eligible for targeted funding. This was based on the schools' distance from small towns or their overall size.

Changes last year brought in complex formulas that measured distances from a variety of towns, including major cities. The size of the grants was also reduced.

As a result 125 schools lost eligibility for isolation funding, 243 became eligible and 335 schools continued to get funding.

"We would like to highlight the fact that although the total number of schools that receive isolation funding has increased, the amount each school receives and the amount per pupil has decreased," the committee said in its report.

Petitioners complained the new system did not accurately measure isolation nor did it cover the extra costs the schools faced.

The Government has to respond to the committee's report, but is not bound to take action.

- NZPA