"I guess two key concerns are: students aren't in school, they're not learning, and it takes them a long time to catch up. All the research shows it does have a direct impact on their ability to achieve."
Mr Walsh also said police were concerned with rates of truancy because it was linked with crime.
"Parents have to take responsibility to make sure children get to school each day, and schools have to ensure that what they're providing students is engaging, and that they want to come to school. That partnership needs to be more fully explored."
He said parents taking students out of school for cheaper holidays was fine for younger students - for which a holiday would be an education in itself - but not for older, NCEA-level students where it would mean missing vital classes.
A truancy officer in Rotorua, who did not wish to be named, said non-attendance was a complex issue and was almost never just kids wanting to stay at home and watch TV.
"I think the biggest contributing factor is poverty," the officer said.
The officer said poverty affected attendance rates in a number of ways. Transport issues, food insecurity and not having a uniform or the right school equipment could make it difficult to get to school or cause reluctance to attend.
"They want to be the same as all the other kids, but they can't.
"We're already feeding kids at school. We give half of the uniforms out - we try really hard.
"Some of the kids get very embarrassed that it's a need."
The officer also said an increase in the number of families not having a secure place to call home led to transient students - the term used to describe those who moved schools more than once within a year.
The Ministry of Education said transience negatively affected student achievement. Students who moved schools twice or more during Year 9, 10 or 11 achieved NCEA Level 2 at less than half the rate of those who did not move at all.
Transience rates have been stable since 2012, at about 0.5 per cent of students, however, it was strongly linked to socio-economic factors. Decile one students were more than seven times more likely to be transient than decile 10, according to the ministry.
Maori students also had a far higher transience rate - twice as much as Pacific students, and almost four times as much as Pakeha students.
The truancy officer said embarrassment was also a large factor in missing school. Students who fell behind academically could feel ashamed, or like they were not as smart as others, making staying at home even more appealing.
Rotorua's drop in student attendance was mirrored nationwide. Regular attendance - 90 per cent or more - fell from 69.5 per cent in 2015 to 67.2 per cent last year. The result was the second lowest in the past six years.
Rotorua Lakes High School assistant principal Ross Dunn agreed falling behind could lead students to miss more school - a downward spiral.
"There's an age-old saying: attendance equals achievement. And it holds true. When a student is absent, they miss work ... and if they're behind and not up to speed with the class, that can lead to more truancy."
Asked what could have changed for figures to be declining not only in Rotorua, but also around the country, Mr Dunn said he could not pinpoint one reason.
"It's multi-faceted, as far as the reasons behind truancy. From health concerns, to family situations, to peer pressure and peer situations. It's very, very diverse.
"It is a big issue and one we're consistently battling with and trying to remedy."
