Mr Baird made the announcement today at Ballina, with Minister for Education Adrian Piccoli, National Party candidate for Ballina Kris Beavis and retiring Ballina MP Don Page.
"Investing in public education is vital for our children's future and I am incredibly proud to announce this investment of more than $40 million for Ballina students," Mr Baird said.
"Ballina is a growing region and it is vital we make this investment to ensure local students have access to state-of-the-art educational facilities.
"The new high school will feature the latest technology and innovative classroom design to ensure students are learning in the best possible environment.
"I pay tribute to Kris Beavis and Don Page who have both been campaigning strongly for this new school."
Mr Piccoli said the new school will improve educational delivery in Ballina, from preschool to Year 12.
"This Government will ensure that schools provide the opportunity for every student to achieve at the highest possible level," Mr Piccoli said.
"Built to prepare students for the opportunities and challenges of tomorrow, this high school will feature new flexible learning spaces so students can work on group and individual projects that require research, problem-solving and critical thinking.
"High school students in Ballina are already benefitting from the needs-based Resource Allocation Model introduced for public schools by the NSW Liberals & Nationals Government.
"In 2015, Ballina High School will receive a flexible funding allocation of more than $700,000 to better support students, an increase of $386,000 since 2013.
"Students at Southern Cross School are benefitting this year from support of nearly $600,000, an increase of $349,000 since 2013."
Mr Beavis said the new school will be welcomed by Ballina residents.
"This new school will be the envy of communities around the State and will ensure Ballina students have the very best opportunities to succeed," Mr Beavis said.
The new Ballina High School will be built on the existing school site and will cater for students from the existing Ballina High School and secondary students from Southern Cross School.
The consolidation will allow for the expansion of facilities for Science, VET, Creative and Performing Arts, and Personal Development, Health and Physical Education.
The current Southern Cross School site will continue to accommodate Southern Cross School primary students and the existing Distance Education Centre, which currently caters for secondary students and is expected to grow within the site.
Ballina Public School will continue to cater for its school community, and facilities for students with special needs will continue to be provided across all school sites.