Primary school principals are fighting a government plan to stop them enrolling international students.
They say the proposal does not make sense and comes just as foreign families are lining up to enrol their children next year after the borders reopen.
An Education Ministry consultation document said enrolment of children should be restricted before Year 9, because it was unfair on schools that did not enrol foreign students, added to pressure on the housing market and to teacher supply, and could distract schools from focusing on Kiwi kids.
It said before the pandemic, 320 primary and intermediate schools enrolled more than 5000 foreign students.
Though the document talked about restricting enrolments, principals told RNZ it was clear the plan was to ban enrolments altogether.
Tauranga Intermediate principal Cameron Mitchell said his school had about 30 foreign students, one in each class, before the pandemic.
He said the children helped give their Kiwi classmates greater insight into other cultures and did not create extra work for teachers.
"Our teachers loving having international students in their classrooms as do the students," he said.
Mitchell said the government's proposal did not make sense and principals were not happy.
"They're pretty angry actually because we can only see the positive impacts of international students on our school communities," he said.
"Yes, we generate a lot of extra revenue but importantly a lot of that revenue is used to support our New Zealand domestic students' education."
Remuera Intermediate School principal Kyle Brewerton said the reasons given for stopping the enrolments were not valid.
"None of us are able to see any real merit or value in any of the arguments," he said.
In 2019, the families of young foreign students spent nearly $400 million in New Zealand, including nearly $30m in school fees.
Brewerton said high-decile schools like his needed that money more than ever.
"We do get donations from our community but those have dropped off significantly since Covid and understandably so, people are really facing some financial stress now and that's only looking to get worse, and then you throw this into the mix as well. We're really going to have to look closely at what has to give," he said.
He said his school used foreign students' fees to buy digital devices for classes, extra English lessons for New Zealand students who needed them, and property enhancements like shade sails in the playground.
Schools International Education Business Association chief executive John van der Zwan said schools could not proceed with enrolments for next year while a ban was in the offing.
"It does need to be resolved quickly because this just makes us look more like a closed country and we're not welcoming to young international students," he said.
Educational Institute president Liam Rutherford said the union was worried inadequate government funding was forcing schools to enrol foreign students for their fee income.
He said all schools should be properly resourced.
Consultation on the proposal closes on 11 March.