Budget 2010 - A real say for communities

This Government is committed to a New Zealand where individuals, families and communities take responsibility for themselves and each other.  The new Community Response Model (CRM) responds to this commitment by giving communities a greater say in what family support and services they need locally.  At the moment much of the funding is dictated from Wellington and allocated through a system that encourages competition, duplication and waste.  CRM brings community and government together to transform the delivery of family and community services. This change in how we work together will provide flexibility and connect communities to create more effective ways of supporting families and better value for the New Zealand taxpayer.

Community Response Model

In May 2009 the Government responded to the impact of the global economic crisis on critical social services by establishing the Community Response Fund. In this second year the fund has $64m.

Community Response Fund regional panels were established to consider applications to the Fund and make funding recommendations to MSD national office. 

The CRF panels have taken their work seriously and have not shied away from the tough decisions that are needed if we are to focus on quality services that get results.

Over the last few months Government has been working with a number of NGOs to build on the experience of CRF. As a result Government has now agreed to establish Community Response Model forums. Their role will be to listen to their communities and develop new community-based solutions that provide better results for families. Government is looking for a response that goes beyond simply providing more and more services, to really changing the way services are delivered in communities.

The Forums will assess how existing funding from Family and Community Services is allocated in a region and make recommendations to the Minister for Social Development and Employment for a medium term plan on how that total funding can be best used to improve support for local families.

To support this shift, there will be a two level Community Response Model: Quality Services and Innovation Fund totalling $90.5 million over four years (and $34.7 million in out years).  This fund will:

• enable CRM forums to work with local providers and communities to become better joined up and to upskill staff and their organisations. This will include merging backroom functions, integrating service delivery, building workforce capability and sharing examples of good practice.
• be available to providers and communities who have reached a high standard of delivery and capability to deliver a greater volume of service where required and support new and innovative services from more effective and joined up arrangements.

This funding is provided in recognition that there is a cost to creating change. This funding is not for ‘more of the same' but rather a step change in the delivery of family and community services.

Where does the funding come from?

Funding for these initiatives will come from reallocating some of the $348 million uncommitted Pathway to Partnership funding over the next four years, retaining over 90%[1] of the uncommitted funding agreed to by the previous Government.

In addition to CRM forums, the Government has agreed to:

• place a further $86.6 million over four years in a ring-fenced fund within Vote Social Development to purchase family and community services that deliver on Government priorities
• commit $21.5 million over four years to supporting vulnerable teen parents and their children, and placing social workers in hospitals to protect our most vulnerable children (see separate fact sheets)
• provide $120 million over four years to implement Whānau Ora.

The table below summarises how the $348 million has been allocated:

[1] A substantial proportion of the previous Government's Pathway to Partnership scheme remained uncommitted ($348 million over four years).  Over 90 per cent of the uncommitted four year funding, and over 90 per cent of the final promised per annum funding, has been retained to support families and communities.