Still time to fix the school funding conundrum

The changed indexation arrangements for schools funding recommended by the Commission would no doubt address the unsustainable growth in Commonwealth expenditure. However, it would have a devastating impact on all schools. Over time, the real value of government funding would be seriously eroded, impacting on the provision of programs and the quality of education.

If implemented today, indexation of schools funding by CPI would result in a real decline in government funding of between 2-3% annually. Over a period of time, this could only lead to a reduction in programs and education quality, or in the case of independent schools, significant increases in fees.

It is not unreasonable that government funding for schooling be indexed according to a specific education-based mechanism that measures increases in education costs. The CPI is not a reflection of the increased costs schools face to implement the Australian Curriculum for example, nor does it reflect the movement in the salaries and on-costs of staffing which continue to comprise the largest percentage of school costs.

Schools funding has been a contested public policy issue for decades. Unfortunately the NCOA recommendation to simply transfer responsibilities for schooling to the States is not going to provide the solution as we strive for a fair, sustainable and predictable funding model.