Coronavirus to threaten education spending

Australia’s above-average spending on schooling could come under pressure in the wake of the coronavirus pandemic.

Australia spends more on primary to tertiary educational institutions per full-time student than the OECD average

Australia’s above-average spending on schooling could come under pressure in the wake of the coronavirus pandemic as potential demand for economic stimulus measures compete with education for public funding.

Federal, state and territory governments would be likely to face difficult decisions over the allocation of taxpayer funds, a new report has warned, while rising unemployment could be expected to hit private sources of education funding.

The OECD’s Education at a Glance report, released on Tuesday, said the COVID-19 pandemic would be likely to impact education budgets more rapidly than previous economic and financial crises as “public revenues decline and governments review the prioritisation of education in national budgets”.

“While there is uncertainty about the likely overall impact of the COVID-19 pandemic on education expenditure, governments will face difficult decisions on the allocation of resources, as government funds are injected into the economy and the health sector,” the report said.

“As unemployment rises, private funding of education may also be at risk.

“The impact may be most severe in those countries and levels of education that rely most heavily on household expenditure, in particular early childhood education and care and tertiary education.”

According to the report, which comes on the back of confirmation the Australian economy had slumped into recession for the first time in almost 30 years, private sources accounted for 34 per cent of total expenditure in early childhood education Australia in 2017 — higher than the OECD average of 17 per cent — while at the tertiary level, 64 per cent of total expenditure came from private sources — more than double the average across OECD countries.

Australia spends more on primary to tertiary educational institutions per full-time student than the OECD average, investing a total of $US13,272 ($18,195) per student compared to $US11,231 on average across OECD countries. Around 6 per cent of national gross domestic product was spent on education in 2017 — more than the OECD average.

According to the report, when the 2008 global financial crisis hit, public spending on education broadly continued to increase in 2009, with the first signs of slowdown appearing in 2010 when austerity measures imposed cuts in the education budgets of about one-third of countries.

“However, the current crisis is expected to affect education budgets more quickly as public revenues decline and governments review the prioritisation of education in national budgets,” it said.

“Forecasts predict that the pandemic will lead to slower growth in government spending in the coming year.

“If the share of government spending devoted to education were to remain unchanged, education spending would continue to grow but at significantly lower rates than before the pandemic.”

Current record funding arrangements between the commonwealth government and the states and territories, which jointly fund primary and secondary schools, expire in 2023.

Unveiling the report in Paris, OECD secretary-general Angel Gurría said strengthening education systems needed to be at the heart of government planning following the pandemic.

“It’s critical that every effort be made to ensure that the crisis does not exacerbate the inequalities in education that have been revealed in many countries,” he said.

“The current crisis has tested our ability to deal with large-scale disruptions. It is now up to us to build as its legacy a more resilient society.”

The report, which compares the education systems of 46 countries on a range of financial and performance measures, found school salaries to be the largest expenditure in formal education.

In Australia, teachers’ average salaries range from $US59,346 at the primary level — higher than the OECD average of $US43,942 — to $US60,568 at the upper secondary level, which is higher than the OECD average of $US49,778.

However, teachers’ average salaries remain lower than the average of all tertiary-educated workers in almost all countries