The education sector has had to come up with more than half of the $1.9 billion to fund new education initiatives over the next four years.

Turnover rates at some schools are sitting at around 56 per cent - more than half of the children who start the year don't finish there.

Our neediest teenagers are often being educated in "Third World" conditions without trained teachers, textbooks or standard school services.

Imagine a New Zealand school whose books had words blacked out or pages removed and large parts of the curriculum were simply not taught.

Anne Tolley has told secondary schools the Government is serious about education, but the next few years will not see a great deal of new money.

The Govt can afford interest-free student loans but there needs to be more respect for taxpayer funding, John Key says.

Teachers could go on strike as early as next month amid building tension between their union and Education Minister Anne Tolley.