1. 1 2009/10 DIVISION OF REVENUE BILL Presentation to Select Committee on Finance 24 February 2009

2. 2 Overview of 2009 MTEF baseline allocation and policy options. Expenditure/Key Outcomes based on Third Quarterly Report for Conditional Grants. Allocations and planned outputs for the 2009 MTEF: Conditional Grants.

3. 3 Overview of 2009 MTEF policy options National Service2009/102010/112011/12 Allocated* R'000 Baseline Allocation (including inflation) Higher Education 20 788 047 0 23 846 863 0 25 217 231 700 000 NSNP 489 0001 200 0002 000 000 Technical Secondary Schools 4 602 80 000 200 000 NEEDU 5 522 11 03111 947 TOTAL21 287 17125 137 89428 129 178

4. 4 Overview of 2009 MTEF policy options Sector Service2009/102010/112011/12 Total Allocated Total Allocated R'000 Extension of no fee schools to Quintile 3 0 800 0001 000 000 Grade R Infrastructure0100 000400 000 Other Infrastructure 0 200 000 800 000 Inclusive Education 0 0300 000 Reduction of Learner: Educator Ratio0 250 000 1 800 000 TOTAL 01 350 0004 300 000

5. 5 Overview of 2009 MTEF baseline allocations  Total education funding amounts to approximately R139,7 billion after effecting the government wide cuts due to the status of the economy  Education consumes approximately 5,7% of GDP over the 2009 MTEF period  Provincial spending equals 86,6% of total education spending  Total baseline adjustments at provincial level over the MTEF period amounts to approximately R18,8 billion  Biggest expenditure item remains compensation of employees at 74,9% of total expenditure (including conditional grants)  Conditional grants amounts to 1,8% of total education funding

6. 6 Conditional Grants Expenditure/Key Outcomes based on Third Quarterly Report

7. 7 FET College Recapitalisation ProvinceOriginalApprovedRevisedTransfersExpenditure% Spent allocationRoll-overAllocationas at of total 31/01/2009 allocation R'000 % Eastern Cape 115 506 165 115 671 80 63969.71% Free State 52 200 40 70777.98% Gauteng 167 156 123 32473.78% KwaZulu-Natal 162 974 125 51877.02% Limpopo 111 646 93 21983.50% Mpumalanga 39 099 5 39 104 31 96081.73% Northern Cape 7 620 6 87990.28% North West 61 494 42 10568.47% Western Cape 77 305 65 61984.88% Total 795 000 170 795 170 609 97076.71%

8. 8 Key Outcomes Reported at 31 December 2008 FET College Recapitalisation  2 603 lecturers were trained on the delivery of the NC(V) programme  Upgrades of 83 College sites completed: 100 targeted for the year  All planned 19 Student Support Units and Resource Centres have been established  Workshop equipment for NC(V) delivered and installed in all 40 workshops as planned  New facilities built during third quarter: 68 Classrooms 28 Workshops 8 Laboratories 17 Offices

9. 9 National School Nutrition Programme ProvinceOriginalAdjustmentsRevisedTransfersExpenditure% Spent allocationEstimatesAllocationas at of total 31/01/200931/12/2008allocation R'000 % Eastern Cape 339 816 73 842 413 658 367 47488.84% Free State 82 498 17 927 100 425 78 03877.71% Gauteng 172 111 37 399 209 510 107 07451.11% KwaZulu-Natal 376 435 81 798 458 233 271 13259.17% Limpopo 252 901 54 955 307 856 195 39063.47% Mpumalanga 136 606 29 684 166 290 109 44965.82% Northern Cape 48 483 10 536 59 019 32 58155.20% North West 103 144 22 413 125 557 85 17667.84% Western Cape 71 109 15 452 86 561 50 13257.92% Total1 583 103 344 0061 927 109 1 296 44667.27%

10. 10 Key Outcomes Reported at 31 December 2008 NSNP  Feeding days per Province varies – on average feeding takes place for 168 days a year  17 899 Schools are currently targeted  6 million Learners receive feeding  2 031 food gardens have been completed compared to the target of 2 027  Current allocations provide for average meal cost of R1,75 due to the inflation adjustment received during the Adjustments Estimates  Additional funds have also been provided to provinces to enable them to prepare for the implementation of the programme in Secondary Quintile 1 schools with effect from 1 April 2009

11. 11 HIV/Aids ProvinceOriginalApprovedRevisedTransfersExpenditure% Spent allocationRoll-overAllocationas at of total 31/01/200931/12/2008allocation R'000 % Eastern Cape 28 542 23 41482.03% Free State 9 800 8 93791.19% Gauteng 23 886 16 55969.33% KwaZulu-Natal 37 610 2 300 39 910 37 66794.38% Limpopo 24 495 18 3726 62227.03% Mpumalanga 13 848 921 14 769 11 27776.36% Northern Cape 3 648 2 46467.54% North West 12 229 10 80588.36% Western Cape 13 847 8 78463.44% Total 167 905 3 221 171 126 165 003 126 52973.94%

12. 12 Key Outcomes Reported at 31 December 2008 HIV/Aids  Orientation meetings were held with parents and communities to improve awareness and support for the programme  19 216 Educators have been capacitated in teaching Life Skills and to handle learner issues (Target for the year – 30 000)  School based support teams were established in 20 000 schools (Target – 15 000 schools)  8 007 schools have been furnished with age-appropriate learner material (Target - 5 000)

13. 13 Disaster Management Conditional Grant  An amount of R22,002 million was allocated for this conditional grant to the Department during the Adjustments Estimate as once- off allocation  The purpose of the grant is to assist KwaZulu-Natal (R16,696 million) and Mpumalanga (R5,306 million) to repair storm damaged schools  The grant amounts for both provinces have been transferred  Reports are being awaited from both provinces on progress made

14. 14 Conditional Grants Allocations and planned outputs for the 2009 MTEF

15. 15 ALLOCATION FOR 2009 MTEF FET Recapitalisation  The FET Recapitalisation grant will come to an end on 31 March 2009  Activities during 2009/10 will be focussed on committed uncompleted work, if any, as at 31 March 2009 for amounts that will be rolled over  The grant will still be subject to the annual evaluation of the 2008/09 activities that will be conducted during April to June 2009  Since the grant is phased out, it was agreed with National Treasury that the funds are distributed to provinces as part of the equitable share and should remain within the education allocations for the FET Programme – this is being monitored and will be verified as soon as the final provincial budgets for the 2009 MTEF are available  Initial indications from provincial education departments are that the funds have been received through the equitable share allocations and will remain within the FET Sector

16. 16 ALLOCATION FOR 2009 MTEF NSNP

17. 17 IMPLEMENTATION OF MINIMUM NORM NSNP  Minister of Education approved implementation of revised minimum norm with effect from 1 April 2009 for the 2009/10 financial year  Minimum Norm: - Continue feeding of all learners in Quintiles 1, 2 and 3 primary schools - Programme to be implemented in Quintile 1 secondary schools - Feeding must take place on every school day - Average meal cost for primary learners approximately R1,80 and secondary learners 1,3 times the value of a primary learner (R2,35)

18. 18 IMPLEMENTATION OF MINIMUM NORM NSNP  Approved implementation over the two outer years of the 2009 MTEF: - Further implementation in secondary schools: Quintile 2 (2010/11); and Quintile 3 (2011/12) - Average meal cost to increase as follows: Primary: 2010/11 (R2,10); 2011/12 (R2,30) Secondary: Increased to 1,75 times that of primary learner: 2010/11 (R3,80); 2011/12 (R4,10)  Funds have also been allocated to provinces to assist with implementation cost to implement feeding in secondary schools

19. 19 ALLOCATION FOR 2009 MTEF HIV/Aids

20. 20 KEY ACTIVITIES FOR HIV/AIDS CONDITIONAL GRANT  The primary focus of the grant is to ensure access to an appropriate and effective integrated system of prevention, care and support for children infected and affected by HIV and Aids  The grant also aims at providing education and training for School Management Teams and educators to develop, implement and manage Life Skills education in line with HIV and AIDS, drug and substance abuse and gender equity policies

21. 21 NEW CONDITIONAL GRANT 2009 MTEF TECHNICAL SCHOOLS RECAPITALISATION  The preliminary allocations for the grant are as follows: 2009/10:R4,602 million 2010/11:R80 million 2011/12:R200 million  The amount of R4,602 million allocated in 2009/10 will be used to assist the Department in the preparation phase to implement the grant  The project seeks to recapitalise 100 technical schools over the medium term, which form part of the public school system  The recapitalisation process will provide these 100 schools with infrastructure, installation of new equipment and workshops to support quality technical curriculum delivery