Response to The Sunday Age, which had asked: Should private schools have their federal funding reduced

Media Release, Association of independent schools of victoria, 18 February 2008

'Now is not the time to talk about reducing funding for education.  Today governments are recognising that Australians want more, not less money invested in educating all young people wherever they go to school.  Taking funds from one sector and allocating it to another is not the answer.

'Opponents of funding for independent schools only focus on the direct contribution made by the federal government and ignore funding provided by state governments.  This is because when the federal government’s figures are used and state figures are ignored, government schools look worse off.

'But it’s only half the story.  With state government funding included, government schools receive a far greater share of public funding than non-government schools.  No child at an independent school receives more government funding than a child at a government school.

'It’s quite the opposite.  Each student at an independent school costs the taxpayer about half the average amount of each student at a government school.

'The latest Productivity Commission figures show that in 2005-06, government schools in Victoria received combined Australian and Victorian government funding of $10,352 per student, while non-government schools received just $5,613 per student.   Government schools received $5.569 billion compared with $1.638 billion for non-government schools.

'If federal funding for independent schools was reduced, the education bill for Victorian taxpayers would go up.

'Federal government funding for schools is based on the socio-economic status (SES) formula that assesses the financial situation of parents, not schools.  Communities with a higher SES figure are considered more able to support their school and the school receives less government funding.  Based on Census data, the formula is transparent and flexible, changing as the community changes.

'We welcome the statement in January by the Deputy Prime Minister and Minster for Education, Ms Gillard confirming that SES will remain in place.

'Government funding for students at independent schools supports choice, balance and quality throughout the education system.   This is recognised by families whatever their financial situation.  Many low income families send their children to non-government schools and many who are financially better off use government schools.

'Parents choosing non-government schools and paying fees are helping to shoulder the cost of education. Reducing federal funding for independent schools would not only cost taxpayers more but it could reduce parents’ freedom of choice to select schools that best match their educational, philosophical, social and religious values.'

Additional points:

• As not-for-profit organisations, independent schools do not make a profit to be returned to shareholders.
• Income received in excess of income spent is held in reserve for a range of purposes.
• Independent schools, like other well-run not-for-profit organisations need to ensure they have adequate resources to meet planned and unplanned financial requirements.
• Future planning requires funds to be set aside for expansion to meet growth in enrolments - new buildings, facilities, equipment and grounds.
• Reserves need to be held for maintenance, replacement and depreciation and to meet anticipated increased costs for essential services such as utilities, gas, electricity, water, telephone plus increases in teachers' salaries and other staff costs.
• In some cases reserves are held and built up over a period of time so that when a school does embark on a building programme it has the available funds and is not required to take up large loans.
• Larger, well-resourced schools have less access to government capital grant funding. They also have greater building maintenance commitments and provide a range of additional educational services.
• Where possible, schools build in fee relief through scholarships and extended payment plans and family concession plans as part of their budgeting.
• Independent schools manage their business in the most economical way so as to keep costs down, which means that their fees can be competitive, compared with other schools offering similar services.
• We acknowledge the Government's commitment to maintain SES funding because:
  • It is fair and equitable and provides choice, balance and quality
  • It is transparent, based on Census data
  • It is flexible, changes when local communities change
  • It encourages private investment in education.
• Parents choosing to directly invest their own funds in their children's education by enrolling them in independent schools are making a significant long-term contribution to education and therefore Australia's prosperity.

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