The Ministry of Education is reviewing the bulk funding system that pays for the day-to-day running of schools.
Operations grants were introduced in 1989, and Education Minister Steve Maharey says the situation has changed considerably since then.
"In the old days of chalk and talk, school expenditure was relatively easy to control," he said on National Radio today.
"These days you're talking about big investments in information technology, personalised styles of learning and issues like special education."
Principals' Association president Graham Young said there had been sweeping changes in schools since the grant system was introduced and the review was very significant.
Mr Maharey said it would look at what was required to run a world-class school.
"We've also got to be clear there's no way a government that has already increased funding by 50 per cent is looking at just putting on the table endless amounts of money," he said.
- NZPA
School operation grants reviewed
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