The funding of population-based public health services (health protection, health promotion and disease prevention) has received little attention in the international literature on health reforms, and yet these services are of fundamental importance to the health of populations and to the economy. This article provides justification for health policy-makers placing more emphasis on the level of public health funding compared with funding on personal health services, and accountability arrangements for its expenditure, when considering options to improve the performance of their health sectors. The New Zealand experience of funding public health services is described within the context of the health reforms. The strengths and weaknesses of the adopted approach are analysed.