Is the Gillard Government going to withdraw funding to independent schools?

Last night I attended an important forum organised by the NSW Parents’ Council and held at the leading girls’ independent school Abbotsleigh, located at Wahroonga in my electorate of Bradfield.

The purpose of the forum was to discuss likely changes to the model for funding independent schools, which the Gillard Labor Government looks likely to introduce following the report of the Gonski Review into independent school funding.

There was a very strong attendance, with several hundred parents and school representatives present, from a large number of independent schools across the state.

Government support for independent schools is a matter of critical importance for the parents of the 1.2 million Australian children attending such schools.  Moreover, if independent schools did not do the job they do, it would put enormous pressure on public schools around Australia - which are today attended by around 2.3 million students. 

According to Government figures, the federal and state governments together spend around $25.7 billion on government schools.  An additional $9.1 billion goes from governments to non-government schools.  Clearly if it costs $25.7 billion to educate 2.3 million students in government schools, then $9.1 billion is far short of what is required to educate the further 1.2 million in non government schools.  The gap, of course, is made up by the fees and donations paid by parents to independent schools.

Today, independent schools receive government funding according to the ‘Socioeconomic status’ model adopted by the Howard Government in 2000.  The starting point is to calculate the average per student recurrent cost of government schools: for secondary schools in recent years this has been a bit over $11,000.   Next, a formula is applied to determine the percentage of this amount that a given independent school will receive.  The highest possible percentage is 70 per cent, and this goes to the most disadvantaged schools based on socioeconomic status; the lowest is a mere 13.7 per cent.  (Disadvantage is calculated based on the students, and their socioeconomic status drawn from census analysis.) 

However there are powerful political forces opposed to this funding model - and to the principle of independent schools receiving government funding.  For example, the Greens oppose the existing funding arrangements for non-government schools; instead they want Government schools to be funded at the expense of non-government schools. As indicated on their website, they want to drastically reduce non-government schools funding back to 2003 levels.

Similarly, the Australian Education Union has been conducting a campaign against the present model of funding independent schools.  In its submission to the Gonski Review, the Australian Education Union argues that 1 200 non government schools have been overpaid by $2.7 billion between 2009 and 2012. Taking this argument to its logical conclusion, the AEU would have cut funding to those 1,200 schools. That’s almost half of all non government schools.

Unfortunately, the Gillard Labor Government has refused to give any assurances that current per student funding will be maintained in real terms.  Schools Minister, Peter Garrett has said that no school will receive one dollar less, but it is what he doesn’t say that is telling – no commitment to maintain funding in real terms.

During the 2010 election, the Coalition undertook an analysis of the potential impact of what this might mean for schools if they weren’t promised funding in ‘real terms’. Without indexation, we calculate that funding to non-government schools will be reduced by $1.3 billion dollars over a four-year period. 

Labor unfortunately has a very mixed track record on this issue.  When the current socio-economic status funding model was introduced in 2000, Julia Gillard, described it as a  ‘flawed system and an inequitable index.’  This was followed in 2004 by Mark Latham’s infamous private school hit-list.

Any grounds for confidence by the independent school sector that the current funding arrangements will be maintained is further undermined by the reality of Labor’s very poor budgetary management.  With a deficit in 2010-11 of $49 billion, and the cumulative deficit over the four years to 2011-12 now to exceed $150 billion, it seems that this government’s capacity to maintain or even increase support is going to be very limited.

By contrast, the Coalition has a very clear position on funding to independent schools.  For my part, as the Member for Bradfield, I am determined to stand up for the right of my constituents to exercise choice in education – over 53% of students in Bradfield are enrolled in non government schools. 

From what parents say to me and my Coalition colleagues, it is clear that parents expect governments to support their right to choose a non government school for their children – and rightly so.

The Coalition will stick by non-government schools, we will not countenance any reduction in the quantum of funding and we will insist on real indexation into the future.

Our Shadow Education Spokesman the Hon Christopher Pyne recently articulated four key principles in this critical policy area.  First, the Coalition is committed to school autonomy and will work with the state and territory governments to decentralise decision making from head office, to the principal in the government schools sector.  Second, we are determined to get to the bottom of BER waste. 

Thirdly, we will defend choice and diversity in education and fight to ensure non-government school funding is maintained in real terms beyond 2013.  And fourthly, we will refocus the MySchool website on its original purpose as a diagnostic tool designed to provide educational information and stop it from becoming a weapon to be wielded against public funding of non-government schools.

I congratulate the NSW Parents’ Council, and Abbotsleigh, for their initiative in organising last night’s forum.  If we are to secure a sustainable funding model for non-government schools once the Gonski  Review reports, this forum will need to be just one of many acts of political advocacy.  It is vital to make the Gillard Government understand that there is broad community support across Australia for preserving strong government funding for independent schools.