School funds boosted in stages

INCREASED federal funding for schools is expected to be phased in, with a transition period being considered for new arrangements.

INCREASED federal funding for schools is expected to be phased in, with the government saying yesterday a transition period would be considered for new arrangements.

School Education Minister Peter Garrett also said the federal government would negotiate over the contribution expected of the states and territories.

Mr Garrett outlined two steps in the process to reform school funding, one establishing a model for distributing money to schools and the second to negotiate how to deliver the funding under a new system.

"If that involves consideration of transition, I'm open to that," he said.

"We do want to make sure that we bring forward something which can work, both in the national interests and which we can negotiate with states to make sure that we have school improvement happening everywhere."

Appearing on Sky News's Australian Agenda yesterday, Mr Garrett downplayed the amount of extra money expected to be injected into the school system when the government releases its response in the next week or two to the independent review of school funding headed by businessman David Gonski.

The Gonski report found that based on 2009 figures, an extra $5 billion a year was required to enable all schools to educate students to the level of the nation's best schools, which The Australian has reported is an estimated $6.5bn in today's dollars.

The report said that based on the current share of funding provided to schools, 70 per cent of any additional funding would come from the states and territories and the remainder from the commonwealth.

Mr Garrett yesterday emphasised that the $5bn was only an estimate and the government would negotiate over the share the state and territory governments would have to provide.

"The $5bn figure was an estimate by Mr Gonski and it was based on an appropriation across the states and the commonwealth," he said.

"We want to deliver the opportunity for us to have a funding model which is fair and effective and sustainable.

"We expect the states to make a contribution and we want to do it in a way which is obviously manageable within the budget constraints that the government has."

Mr Garrett's comments suggest the extra funding may be less than the full amount required in the first year, but increase in subsequent years. Phasing in the extra funding has the advantage of making it more palatable to the states and territories, who have been supportive of the Gonski recommendations, but unwilling to commit to any extra funding.

Mr Garrett said some states would negotiate a deal rather than risk the anger of their electorates.

"Let's just look at what states are missing out on if they don't recognise the opportunity to lift school improvement nationwide," he said. "It's an investment for their premiers and first ministers and it's something that I suspect all of their constituents want to see happen."