Billions missing in secretive school funding deals

After a year of squabbling with states, the Albanese government has revealed a final figure for Gonski funding of public schools but its cash contribution doesn’t appear to add up.

Funding for public schools will significantly increase over the next decade. Picture: Tim Hunter.

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Public schools have been short-changed as much as $16bn through secretive funding deals forged on the eve of the federal election.

In a smoke-and-mirrors announcement, Anthony Albanese on Monday said the federal government would boost funding to public schools by $16.5bn to put them “on a path to full and fair funding’’ over the next decade.

The deal ends a year of squabbling with state governments, which had rejected the Albanese government’s initial offer to boost spending by $16.2bn, by lifting its contribution from 20 per cent to 22.5 per cent of costs.

The federal government has now boosted its share of funding to 25 per cent – doubling its initial offer - but the dollar value is only $16.5bn, $300m more than what it offered a year ago.

Centre for Independent Studies education research fellow Trisha Jha said based on the higher percentage of funding, the commonwealth would be expected to hand over at least $30bn over the next decade.

“This is being presented as the final piece of the Gonski puzzle, but there’s no clear indication of what’s being spent, and which level of government is spending it,’’ she said.

“I cannot see how changing the percentage (from an extra 2.5 per cent to 5 per cent) doesn’t put spending in the vicinity of $30bn. The onus is on them to be clear about how it was calculated.’’

A spokesman for Education Minister Jason Clare said “the overall funding envelope is determined by the funding trajectory over the life of the agreement.”

This indicates the federal government will postpone its payments to some states, under funding timelines it is refusing to make public.

The Prime Minister’s announcement said the federal government would lift its share of spending to 25 per cent “by 2034’’ - meaning it could take nine years for every public school to receive all the needs-based funding that was recommended by business leader David Gonski in a funding review in 2011.

Mr Albanese signed a $2.8bn 10-year funding agreement on Monday with Queensland, the last state holding out for more “Gonski funding’’ for public schools.

Greens schools spokeswoman senator Penny Allman-Payne said the agreement would leave public schools underfunded for another decade. “Labor’s plan ensures that it will be a quarter of a century before Gonski is delivered,’’ she said. “That means kids currently in school are going to finish year 12 never having experienced the fully resourced education they deserve.

“That means not enough teachers, not enough in-class supports, inadequate facilities, and parents and teachers dipping into their own pockets to make up the shortfall.’’

Victoria appears to have lost $1bn in the supposedly superior funding deal it agreed to sign last month. It was set to pocket an extra $3.5bn from the federal government under Mr Clare’s initial offer to cover an extra 2.5 per cent of schooling costs.

Victoria agreed in February to accept a 5 per cent increase to commonwealth funding, worth only $2.5bn over 10 years - although it has yet to sign a bilateral agreement.

Queensland appears to be $300m worse off under the offer it signed on Monday, compared to the original deal that offered only half the percentage increase.

Mr Clare’s office is also refusing to release the full details of the funding deals, defying a Senate order to produce bilateral agreements signed with state and territory governments.

But the commonwealth appears to have agreed to top up spending on curriculum development and school buses.

Until now, state and territory governments have been able to siphon off 4 per cent of total school funding to spend on capital depreciation, transport and syllabus development.

Now they must spend all the money directly on schools, although the commonwealth government will set up a separate fund to reimburse states for extra schooling costs.

Prime Minister Anthony Albanese meets with Queensland Premier David Crisafulli to sign a school funding deal.

Mr Clare said the national funding agreements were a “big deal’’, and would tie spending to reforms such as phonics tests for all children in year 1, evidence-based teaching methods and catch-up tutoring for struggling students.

States and territories must also meet targets for academic achievement, school attendance and year 12 graduation rates.

“No government has ever done this before,’’ Mr Clare said.

“This agreement that we’ve now struck with every state and territory means that every public school across the country is going to be funded at that level that David Gonski said they should be at. It ratchets up year after year after year to get to that level.

“But it’s not a blank cheque. It’s tied to the biggest set of reforms to education in decades.’’

Federal opposition education spokeswoman Sarah Henderson said a future Coalition government would match Labor’s funding agreements “dollar for dollar’’, but demanded Mr Clare release the bilateral agreements.

She said there had been “nothing but secrecy’’ since Mr Clare agreed to boost funding by 5 per cent.

“The public has a right to know what deals have been struck behind closed doors, and what this means for teachers, students and their families,’’ she said.

The Queensland Teachers Union praised the funding deal on Monday, immediately announcing it would seek a pay rise for teachers.

The federal government has doubled its share of funding to the Northern Territory from 20 per cent to 40 per cent of schooling costs.