'More cuts to foot bill'

WAYNE Swan has admitted more long-term cuts to the budget will be needed to fund the Gonski education reforms and the NDIS.

WAYNE Swan has admitted more long-term cuts to the budget will be needed to fund the government's ambitious but costly Gonski education reforms and the National Disability Insurance Scheme.

The mid-year budget update did not detail any funding for both of the reforms, disappointing disability advocacy groups yesterday.

The budget update papers simply stated that funding the reforms "will require tough budget choices" and the government would continue to deliver on its savings measures to free up resources for the NDIS and school funding changes.

The Gillard government is negotiating with the states on the breakdown for the school funding reforms, estimated to cost $6.5 billion to $6.7bn a year.

The Treasurer admitted further savings would be required to pay for Labor's big-ticket policies.

"There will be other structural saves we will have to undertake as well," Mr Swan said.

Greens education spokesman Penny Wright said money for the Gonski reforms should trump any budget surplus. "Instead of focusing on the short-term goal of achieving a minuscule surplus this year, we should be thinking long term by investing what is needed in public schools, which educate the Australian citizens of the future," she said.

John Della Bosca, spokesman for the Every Australian Counts campaign, a group lobbying for the NDIS, said he was disappointed there was no funding for the reforms. "We won't be satisfied that the NDIS is locked in until we see it in the budget documents," he said.

The update did include cuts to education and skills, including delaying up to $175 million of reward payments to the states as part of the National Partnership for Improving Teacher Quality program.

Opposition education spokesman Christopher Pyne said the "extraordinary hypocrisy" of the government had been exposed by the cuts.

MILANDA ROUT