Coalition funding plan an ‘attack’ on regional schools
Principals reveal the new funding model leaves million-dollar holes in their budgets, and threatens the viability of some schools.
Principals across Australia say regional communities are being “attacked” by a new federal government funding model, which will strip millions of dollars from dozens of regional independent schools’ budgets over the next seven years.
A group of 56 regional schools is calling for a minimum annual funding increase of 2.5 per cent, to cushion the blow dealt by the new Direct Measure of Income model.
The Coalition of Regional Independent Schools Australia says its member schools will lose $360 million from 2022-29 – an average of $10m each – compared to the previous funding model.
CRISA chair Stephen Higgs said 30 schools would receive less than a 2 per cent annual funding increase, while 11 would receive less each year than the year before.
Woodend school Braemar College will receive less funds in 2025 than it does this year under the new model.
Principal Russell Deer said the school had worked hard to keep tuition affordable, at $13,500 a year, but the cuts would force fees up and outprice some local families.
“If we just keep pace, knowing the amount of dollars we get now, inflation is going to creep, so we are losing money in those terms and we can budget on that,” Mr Deer said.
“All of a sudden when the money we have now is not what we will receive in the future … you are going backwards.”
Bacchus Marsh Grammar’s Bruce Simons said the change amounted to “a Coalition attack on regional independent schools”.
The school northwest of Werribee would lose $19m over seven years compared to the old model, with a 1.9 per cent annual increase forcing it to cap its number of Prep classes and turn away 120 prospective students this year.
A Department of Education spokesman said an extra $1.2 billion was available from 2020 to 2029 for non‑government schools through the Choice and Affordability Fund, with a minimum of 9 per cent set aside for regional transition assistance – or $10.8 million a year to be divided between eligible regional schools.
Responding to questions from The Weekly Times, the department refused to explain why some regional schools were not eligible for CAF support.
As secretary of Coalition of Regional Independent Schools Australia, Mr Simons said the Choice and Affordability Fund offered just $30,000 a year to his school and covered less than 15 per cent of the total regional school losses.
Bacchus Marsh had been investing in growth to cater for the boom in new residents north of Geelong, but the funding shortfall meant new classes had to be limited and fewer students accepted this year, he said.
The Hamilton and Alexandra College is also losing funding and received just $30,000 from the CAF.
Principal Andrew Hirst said the school’s DMI score went up unexpectedly by three points in November, leading to even more funding cuts than he had anticipated. He was fearful the strong agricultural season would further penalise schools that served rural communities, as incomes increased in short term.
Calrossy Anglican School principal David Smith said the CAF assistance was welcomed, but covered less than a third of his Tamworth boarding school’s fund shortfall.
“We want choice to still be an option for parents,” he said.
“We are not asking for more money, we are asking to preserve what we are receiving.”
Independent Schools Australia chief executive Margery Evans said the peak body was “concerned” about what the losses would mean for regional communities.
‘The Choice and Affordability Fund will provide some transition assistance for these independent schools, however it is not enough to make up for the impacts on those school budgets,” she said.
OPINION: STEPHEN HIGGS OAM
AFFORDABLE INDEPENDENT EDUCATION UNDER THREAT
By Stephen Higgs, chairman of the Coalition of Regional Independent Schools Australia
Serving regional and outer-metropolitan communities across all states and the Northern Territory, there are independent schools under serious threat from a new federal funding model.
These schools offer choice in high-quality education possibly not otherwise available to rural families.
Many have done so for generations, like The Hamilton and Alexandra College, celebrating 150 years of service to western Victoria.
Many offer the vital boarding option for rural and isolated families.
Yet the ability of these institutions to provide affordable education – and the viability of some of the schools – is severely threatened by the Federal Government’s new funding model.
An unintended consequence of the Direct Measure of Income commonwealth schools funding package is the burden of funding losses falls disproportionately and heavily on regional and outer-metropolitan schools.
Independently validated data shows funding losses for regional independent schools average almost three times the per student losses of their metropolitan counterparts.
In an era of rapidly escalating costs, it is galling to see some regional schools facing funding dollar reductions every year to 2029. This represents a looming calamity for schools, and their communities.
The Choice and Affordability Fund does not remove the highly discriminatory funding disadvantage forecast for our schools.
The total amount set aside for regional schools’ transition to the new model is less than 15 per cent of funds lost by regional schools, and not all regional schools are eligible for CAF funding.
Geraldton Grammar School in outer-regional WA will by 2029 lose $3000 per student in annual funding – an enormous hit for a school where fees across the years average about $7000 and which already runs very prudently. Its annual CAF allocation for the next few years is about $200 per pupil.
In Victoria, inner-regional Bacchus Marsh Grammar has been extending borrowings to provide choice for its expanding community. But future growth will be stifled by funding losses, of $1500 per pupil annually by 2029.
The new DMI funding model directly threatens educational outcomes for young people in the regions, where improved outcomes are sorely needed.
Representing 56 of these schools, we have now had seven meetings with federal ministers. While the problem has been acknowledged, it remains unresolved despite our development of realistic policy solutions.
On behalf of more than 100,000 affected parents and young people, we ask for action to preserve the choice and affordability of independent education in regional and outer-metropolitan Australia. We will campaign with determination to protect it.
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