KEY POINTS:
Schools are expected to get a boost for their incomes in next week's Budget, but Education Minister Chris Carter warns there is no endless stream of money.
An operations grant rise is expected to be announced to bring relief to schools, particularly those in the red despite a
more than 40 per cent increase in the funding since 1999.
Mr Carter said schools got "significant" increases in funding for their day-to-day running - and the level had gone up every year under the Labour-led Government.
As well as regular increases in operations grants, education spending overall rose from $5.7 billion to $9.8 billion in nine years.
Mr Carter said teachers were paid more and a $238.3 million boost to property spending went towards modernising schools and providing more classrooms and new gyms.
"It would be nice to have unlimited funds but schools will always be asked to make decisions about allocation of resources because taxpayer dollars must be spent carefully."
Operational funding - which pays for the day-to-day running of schools - has been the subject of at least two official reviews after an uproar about state schools relying on "fees" and donations from parents.
A Ministry of Education review of schools' operational funding released in December 2006 found the percentage of schools recording deficits grew from 29 per cent in 1996 to 43 per cent in 2004.
It found schools got one-third of their funding through parent "donations", fundraising or enrolling international students.
The amount of money given to schools to run day-to-day operations went up by 3 per cent that year.
Last year it was increased by 4 per cent - or about $139 million nationally - a figure dubbed inadequate by Northcote College principal Vicki Barrie, who analysed 2006 Ministry of Education data to show a group of 10 North Shore schools raised 51 per cent of their running costs, on average, from the community.
Another Government review was ordered last year, the unreleased results of which Mr Carter said would inform next week's Budget.
"This Government understands the vital importance of education to this country's future and has invested accordingly. This year's Budget will again see increases for education."
School Trustees Association general manager Ray Newport said a pilot study was examining the financial management of a group of schools.
An Education Review Office national report released last year showed most of the 27 schools included had satisfactory financial management systems.
But it found some were spending money to buy expensive equipment to keep up with neighbouring schools and win students. Some went into debt to do so, a risky move that could pay off if roll numbers rose.
