The Labour Party says Education Minister Hekia Parata's consideration of performance funding in schools could lead to the most radical shakeup of education in a generation.
Ms Parata has revealed that she is looking to fund schools according to the progress their pupils made.
In an interview with the Herald on Sunday, she described the existing regime, in which schools in deprived neighbourhoods were paid more, as a "blunt instrument".
The Ministry of Education was calculating new decile rankings for the nation's 2500 schools from last year's quake-delayed Census.
Ms Parata agreed that schools in some gentrified areas, especially in Auckland, could lose hundreds of thousands of dollars, while others would gain similar amounts.