Parents have reached breaking point and are increasingly refusing to prop up the country's "free" education system, a new study says.
A report by the Council for Educational Research shows spiralling costs cannot be contained and there are reports of "increased resistance to paying donations".
One school in the study raised its donation level and saw the proportion of paying parents drop from 80 per cent to 60.
The vast majority of schools ask for donations, but they cannot legally force parents to pay.
The report suggests that goodwill is disappearing, with parents unhappy about topping up Government provision for schooling.
A Herald survey this year revealed the average donation at state secondary schools was $152, but varied between no charge and $740.
The first part of the ongoing study into school funding last year revealed that the 17 schools studied could not function without additional money to the operations grant.
The new report says schools are in a tougher financial position than a year ago and have "reached a plateau" in the revenue they can raise.
Chris Haines, head of the School Trustees Association, said boards and principals, short of money but unable to raise more, were in "double jeopardy".
"Many schools are having to cut costs in key areas," Mr Haines said. "Unfortunately we are seeing schools being forced into making trade-offs that can impact on students."
The report says costs of support staff, additional teachers, new technology and property have soared, with some schools resorting to bigger classes and reduced subject choices to help make ends meet.
Six of the 17 schools were in a "comfortable" financial position last year, but this year just two are, the report says.
In recent years schools have gone to extremes to raise and save cash.
School fairs have become giant jamborees featuring top pop stars; parents and teachers help with caretaking; principals spend hours filling in grant applications; and children sell everything from chocolate to clothes to Bibles.
In Christchurch a syndicate of schools regularly buys cows, which are grazed free by a local farmer, then sold for a healthy profit.
Kowhai Intermediate, in Auckland, earns a "significant sum" each year by using its fields as carparks for Eden Park rugby and cricket fans.
Kowhai principal Paul Douglas said yesterday that without the money "we would be close to a teacher shorter".
"The pressures come when children and families are more focused on raising money than on the core business of learning."
NZ Parent Teacher Association president Diane O'Sullivan said not a week went by without parents being asked to stump up for something.
"It is a constant demand and we are hearing that parents are getting fed up with it and resisting paying."
Parents who worked for local PTAs were also "burned out" by expectations they would raise up to $60,000 a year, instead of being involved in the day-to-day running of the school, Ms O'Sullivan said.
Education Minister Trevor Mallard has ordered a review of operational funding, which the report calls "extremely timely".
Mr Mallard declined to comment on the report last night.
Parents refuse to prop up schools
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