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Schools facing funding cuts next year will now lose only half the amount planned after the Government conceded they had not been given enough warning.
Some schools had their funding cut after their decile rankings changed and were furious they were given only two months' warning.
But Education Minister Chris Carter yesterday announced a $5.7 million package to give schools more time to adjust to changes in decile rankings.
Mr Carter said schools were not given enough time to prepare for the changes.
"The schools said there wasn't enough consultation and they have a point. They weren't given enough time."
The full effect of the changes will now be felt at the start of 2009, giving schools another year to adjust their budgets.
Mr Carter said that this year the Ministry of Education used the addresses of every student, rather than just a sample, to give a "complete picture" of the socioeconomic conditions of the houses in each school's area.
Despite the controversy, he said, the system was still the fairest ever used.
Mangere Bridge School principal Judy Hanna, whose school had been set to lose $26,000, welcomed the announcement. "It's very difficult to adjust budgets with only a couple of months' notice," she said.
Mrs Hanna said there was more and more financial pressure on schools so any drop in funding was bad - especially when it was sudden.
"To lose only half the amount is great news. We need every single penny."
The amount of money was significant and could equate to a teacher aide's salary, she said.
Mrs Hanna is also president of the Principals Federation and told the Herald principals were looking forward to an increase in the operational grant in next year's Budget.
National Party education spokeswoman Katherine Rich said the Government was more interested in rescuing votes than rescuing schools.
"Labour has put schools through months of unnecessary stress as they struggled to find a way to find the funding to continue operating next year," Mrs Rich said.
NZ Educational Institute national president-elect Frances Nelson, who is also the principal of Otahuhu's Fairburn School, said the cluster of schools in Otahuhu had collectively lost about $500,000.
She earlier warned parents a $80,000 funding cut for her school would have an impact on activities the school could subsidise.
"The transition funding will cushion the blow and enable a number of projects and activities to continue for these schools and their communities during the coming year."
