In addition to the $171.6 million for school operational costs announced on Wednesday, Budget 2008 provides more funding for early childhood, IT, extra teachers, buildings and skills programmes.
The $171.6 million for day-to-day school costs over the next four years represents a 5% increase - the biggest since 2001 - and includes $65.3 million over four years for Information Communication Technology (ICT).
The increase covers the costs of an extra 762 teachers over four years.
Education Minister Chris Carter says the government is delivering on its commitment to reduce new entrants class sizes to one teacher per 15 students.
The funds aim to ensure youngsters get the best possible educational start, including in ICT.
"We must prepare our students for a world with rapidly changing technology," says Carter.
An extra $63.6 million is set aside for early childhood education to help meet increased costs.
Capital funding of $74.7 million over three years allows nine new schools to be completed and for construction to start on another two.
Special education doesn't miss out, with the provision of $18.4 million allocated to students with high needs.
Funding will be provided to expand the newborn hearing screening programme while $6.1 million will be redirected for specialist staff to support vision impaired students.
More help for tertiary students
A tertiary student funding package worth $130.8 million includes a 10% increase in the parental income threshold for a full student allowance with the age limit for the entitlement lowered to 24.
The student loan living cost component will be indexed to inflation from April 1, 2009 following a one-off increase from $150 to $155 a week on January 1, 09.
The bonded merit certificate scheme will be expanded by 50% to 1500 scholarships a year.
Skills package to boost productivity
A skills package of $168 million over four years aims to meet the needs of the modern workplace.
Tertiary Education Minister Pete Hodgson says workers will have ongoing opportunities in the workplace to keep up to date with their "workplace literacy, language and numeracy skills".
The New Zealand Skills Strategy was launched in April as a partnership between the government, Business New Zealand, the New Zealand council of Trade Unions and the Industry Training Federation.
"Investing in these skills leads to higher work quality, better health and safety and improved staff retention," Employment Minister Ruth Dyson says.
The skills of Pacific people is also being catered for.
The Ministry of Pacific island Affairs will run a campaign, at a cost of $200,000 over the next two years, to promote the uptake of modern apprenticeships in the Pacific community.
New focus on innovation
Tertiary education providers will receive $591 million in operating funding over five years as part of the innovation and skills package.
Hodgson, who is also Minister of Research, Science and Technology, says investments of $1.1 billion in the Economic Transformation package are designed to boost NZ's productivity through "research, a quality tertiary sector and practical support for globally competitive firms".
Operating funding of $24 million provides for the development of new industries over the long term in high tech manufacturing, ICT, new materials and sophisticated engineering.
Exporters get a $8 million boost through the NZ Trade and Enterprise Beachheads programme in China, India and South East Asia. Better by Design also receives $8 million to help firms increase their international competitiveness.
Sustainable energy research gets an additional $32. 5 million while science collections will now be permanently funded with $22 million over four years.
