It's been six weeks since the Turnbull government announced its vision for a new school funding model and the changes will soon come to the Senate for a vote. Here's our guide to help you cut through the spin about what's happening to school funding.
How is school funding changing?
![Government changes to school funding will soon come to the Senate for a vote.](http://web.archive.org./web/20170616200651im_/https://www.fairfaxstatic.com.au/content/dam/images/g/w/5/s/c/b/image.related.articleLeadwide.620x349.gwn446.png/1497106486725.jpg)
The government plans to pump an extra $18.6bn into the nation's schools over 10 years than it promised in last year's budget. It wants to create a national, needs-based funding model that does away with deals between Canberra, the states and non-government school sectors. Under the new model, the federal government would eventually contribute 80 per cent of the appropriate funding level for non-government schools and 20 per cent for public schools.
What about the Gonski deals with the states?
In the lead up to the 2013 election, the Labor governments signed six-year deals with several states offering big increases in school funding. Others – such as Western Australia and Queensland – refused to sign on.
Despite going to the 2013 election on an education "unity ticket" with Labor, the Coalition only committed to fund the first four years of the agreements. This was a massive blow to the states because much of the increased spending was to come in the final two years.
State governments such as NSW and Victoria still insist the Commonwealth should honour the agreements in full. But, as confirmed by Department of Education officials recently, the six-year deals are not legally binding and can be terminated at any time.
Is the government cutting $22 billion from schools?
No. Funding for all school sectors is growing and it is misleading for Labor and teacher unions to suggest this amount is being cut from schools. It is true that the government's spending on schools is $22 billion less over a decade than Labor promised at the last election.
Why are Catholic schools so angry?
The Catholic sector – which educates 20 per cent of the country's school children – has the been the loudest opponent of the government's proposals. Funding for Catholic systemic schools is forecast to grow by 3.5 per cent a year over the next decade – less than public schools (5.1 per cent a year) and private schools (4.1 per cent).
Firstly, the Catholic sector is peeved about the process adopted by the government. It felt blindsided by the changes when they were announced and resents its historical funding arrangements being described as a "special deal". It is also incensed the government has published the federal funding allocation for each school in the country on a new website. It says this will make it harder to redistribute money between its schools and keep fees low across the country.
Secondly, there is bad news for the Catholics in the new model. Non-government school systems can currently access a generous funding formula known as the "student-weighted average". This funds systemic schools based on the average socio-economic status of all the schools in a given state and territory. Under the government's model, funding would be calculated according to the SES of each individual school. This may sound like a dry, technical distinction but it adds up to big dollars: hundreds of millions less over the forward estimates.
In total, the National Catholic Education Commission estimates 617 of its schools – 40 per cent of the Catholic sector – will be worse off under the new model.
Are private schools winning or losing?
Both.
Twenty-four private schools – mostly high-fee schools in Sydney's northern suburbs – will have their funding cut immediately next year because they are significantly over-funded according to the Gonski formula. This is a big change from the Gillard government's insistence that no school would lose a dollar under the original Gonski reforms.
This change will have a big impact for schools such as Loreto Kiribilli in Sydney which will have its funding cut by 5.6 per cent a year over the next decade – a $13.9 million decrease.
On top of this, around 350 private schools will have their funding growth slowed from their current trajectory.
Yet the private school sector has welcomed the new funding model, which will see strong funding increases for many of its schools.
Public school advocate Trevor Cobbold says: "Gonski 2.0 reduces the most blatant cases of over-funding of private schools while providing for a huge increase in over-funding. The large majority of private schools will be over-funded by 2026-27 ... It is little wonder that independent school associations have grabbed Gonski 2.0 with both hands."
What if the bill doesn't pass?
Things get very messy. The existing school funding legislation locks the government into annual growth rates for some states but not for others.
Education Minister Simon Birmingham would have to devise a new school funding policy quickly and take it to cabinet to give education authorities certainty about their budgets next year.