Any decrease in funding by changing decile occurs in two stages; funding is decreased by half of the total decrease this year and then is reduced further in 2016 to the new, higher decile, level of funding. This can have a negative impact on schools and their communities as the operations grant provides funds for resource teachers for learning and behaviour issues, reading recovery and social workers in schools among a myriad of other costs.
It is often argued that the bluntness of the decile system is felt in mid-decile schools where a significant portion of students are from lower socioeconomic families but the schools are not eligible for the full funding that a decile one school receives. There can also be concerns about not having an affluent community that supports the school through donations.
Before the current recalculation, decile ratings were unchanged for seven years because the Census was delayed by the Christchurch Earthquake. Schools can apply to have their rating changed if they believe there has been a significant change in their community, for example, a major local employer has closed. So the system is responsive to change, for example, some 160 schools applied for a review of their decile rating after the recent recalculation, 85 of these schools were successful in having their decile rating lowered while 75 remained the same.
There have been moves in the past to review the decile system with a view to replacing it with a different system for allocating funding, and recently the Minister for Education Hekia Parata said that the current system was "inaccurate". However, there are no definite plans to review the system at present.
While the decile system will be continue to be part of educational funding for the near future, the numerical rating is not an accurate picture of how well a school is performing or the quality of the education a school provides. Or how good the neighbourhood is.
Marina Matthews is a partner at Chen Palmer, public and employment law specialists. She specialises in education law and public policy.