State school contributions row puts $1.7bn funding at risk

The PM says Victoria’s Premier is making a ‘political point’’ after creating an impasse by asking for increased funding.

Federal Education Minister Dan Tehan. Picture: AAP

Catholic and independent schools in Victoria could miss out on more than $1.7 billion of federal funds due to be paid in January, unless the state and federal governments resolve a potentially damaging impasse over funding this week.

Scott Morrison yesterday accuse­d the Victorian government of putting the finances of the state’s 700-plus non-government schools at risk, after Premier ­Daniel Andrews refused to sign up to the National School Reform Agreement unless the federal governme­nt increased its contrib­ution to state school funding from 20 per cent to 25 per cent.

The standoff has the biggest potential impact on Catholic and independent schools, given that they receive the bulk of their funding from the federal government, which is distributed by the state government.

January payments — the first of three tranches of funding — are expected to total $1.55bn, which, under the Education Act, will only be delivered if the relevant state or territory has a current funding arrangem­ent with the federal government. Both Independent Schools Victoria and Catholic Education Melbourne urged the two parties yesterday to resolve the situation.

ISV chief executive Michelle Green said the dispute was causing unnecessary concern and uncertain­ty for many Victorian independent schools and parents.

“Not knowing if they will receiv­e the funding they are due to receive in January is causing particula­r pressure and unease among low-fee and smaller independent schools,” Ms Green said.

“These schools are the meat in the sandwich in what is essentially a political dispute between the two governments.”

CEM acting executive director Jim Miles said that with less that two weeks of the school year left it was “the worst possible time” to create uncertainty over when funding would flow next year.

Victoria and Queensland are the only states to have not signed up to the national schools agreement, which will see record funding delivered to all sectors over the coming decade.

While Queensland continues to negotiate in “good faith”, accordin­g to a government spokes­man, Victoria dug in its heels yesterday, after letting a Frida­y deadline set by federal Education Minister Dan Tehan pass.

Mr Andrews said he would not sign a “dud deal”, which would leave Victoria $800 million worse off over the first three years compared with what federal Labor was offering.

“We have an offer from the commonwealth government which is a completely unacceptable offer; a multi-year deal that sees Catholic and independent schools funded at 100 per cent, and government (schools) funded at just 95 per cent,” Mr Andrews said. “Victorians will not settle for schools being underfunded … for their kids being short-changed.”

The Prime Minister wrote back to the Premier yesterday, claiming that he was “surprised” the state was “turning down $5bn in commonwealth school funding in 2019 to make a political point”.

He has given the state until tomorro­w — two days before Friday’s Education Council meeting — to sign the deal to ward off delay­s to funding. “The proposal you have put forward fails your own state schools and is out of step with the reasonable agreements,” Mr Morrison wrote.