National Report on Schooling in Australia 2010

Funding Australia’s schools

8.2 An overview of government funding of schools in 2010

The funding arrangements introduced by the Australian Government in 2009 continue; these are outlined in Funding developments in 2010 in this report. Government school funding for 2010 (2009–10 expenditure) reflects the funding arrangements that commenced in 2009 specified in the Intergovernmental Agreement (IGA) on Federal Financial Relations.
Federal and State and Territory government recurrent expenditure on school education in Australia for 2010 is $41.8 billion and is illustrated in Figure 8.1, broken down by government funding sources.
 

Figure 8.1     Recurrent government funding for school education, Australia, 2009–10 (accrual basis)

Figure 8.1 Recurrent government funding for school

Notes:

Depreciation and user cost of capital expenses relating to government schools have been attributed to States/Territories based on ownership of the underlying assets. A portion of these assets will have been acquired through Australian Government capital contributions, with States and Territories responsible for maintenance costs. Australian Government expenditure data in this table includes only Australian Government Specific Purpose Payments. Other Australian Government funding for schools and students is not included.
 
Student numbers are 2009–10 average full-time equivalent (FTE) student populations.
Sources: Steering Committee for the Review of Government Service Provision, Report on Government Services 2012, Tables 4A.6–7; MCEECDYA, National Schools Statistics Collection (NSSC), 2010
See also Additional Statistics Table 49, Table 55 and Table 60
 

Growth in recurrent funding between 2009 and 2010 is outlined as follows:

  • All schools expenditure increased by 7.3 per cent.
    Operating expenditure rose from $38.9 billion in 2008–09 to $41.8 billion in 2009–10, an increase of $2.8 billion.

  • Government school sector expenditure increased by 6.6 per cent.
    Operating expenditure rose from $30.9 billion in 2008–09 to $32.9 billion in 2009–10, an increase of $2.0 billion.

  • Non-government school sector expenditure increased by 10.0 per cent.
    Operating expenditure rose from $8.1 billion in 2008–09 to $8.9 billion in 2009–10, an increase of $0.8 billion.

In 2010, the government school sector received 78.7 per cent of recurrent government funding while the non-government sector received 21.3 per cent.
Total government school education funding, on a student per capita basis, was on average $14,380 for the government sector and $7,427 for the non-government sector.
Table 8.1 below indicates the total government funding and student per capita funding from Australian and State/Territory levels of government to the government and non-government sectors. 
 

Table 8.1     Recurrent government funding for school education, Australia, 2009–10 financial year (accrual basis) 

2010 government funding to schools

Government

Non-government

Total

($ billion and $ per capita)

($ billion)

$ per FTE student

($ billion)

$ per FTE student

($ billion)

$ per FTE student

State and Territory governments

29.343

12,827

2.383

1,990

31.726

9,104

Australian Government

3.552

1,553

6.510

5,436

10.062

2,887

Total Australian/State/Territory Government funding

 

 

 

 

 

 

32.894

14,380

8.893

7,427

41.787

11,991

Average FTE students(a)

2,287,520

1,197,456

3,484,976

 

(a) Average number of full-time equivalent (FTE) students, 2009 and 2010 calendar years. See Glossary for definition of FTE.

Totals may not add due to rounding.
 
Sources: Steering Committee for the Review of Government Service Provision, Report on Government Services 2012, Tables 4A.6–10; MCEECDYA, National Schools Statistics Collection (NSSC), 2010
 
See also Additional Statistics Table 49, Table 50 and Table 51
 

 

Total government funding per student over the past five years is outlined in the graph and table, Figure 8.2. This shows government school per student recurrent funding increasing over this period at a greater rate than for the non-government school sector.

The growth in government school student per capita recurrent funding reflects award increases, government initiatives and in 2010 also incorporates a change in funding arrangements by the Australian Government when there was an increase in government funding per primary student, a new broadbanded Specific Purpose Payment, which included former capital funding in the recurrent base, and National Partnership funding.
 
Primary student government funding increased from 8.9 per cent of the Average Government School Recurrent Costs (AGSRC) to 10.0 per cent of the AGSRC, and the percentage is now in line with government secondary schools per capita funding. National Partnership funding began in 2009 and expenditure on these programs started to be reflected in increased expenditures.
 
Funding movements within and between government and non-government schooling also reflect student profiles and related targeted needs funding.
 

Figure 8.2     Total government per capita recurrent funding, government and non-government schools, 2005–06 to
                       2009–10 (actual $ per FTE)

Figure 8.2 Total government per capita recurrent f  

  Figure 8.2 – source data ($)
2005–06   
2006–07   
2007–08   
2008–09   
2009–10   
  Government schools
11,243   
11,874   
12,639   
13,544   
14,380   
  Non-government schools
6,285   
6,440   
6,606   
6,851   
7,427   


Sources:
Steering Committee for the Review of Government Service Provision (SCRGSP), Report on Government Services 2012, Productivity Commission, Canberra, Tables 4A.8–9; MCEECDYA National Schools Statistics Collection (NSSC), 2006, 2007, 2008, 2009, 2010

See also Additional Statistics Table 49, Table 50 and Table 51 for government school data.
 

 

Table 8.2 reflects the Australian Government’s funding agreements commenced in 2009, which incorporate National Schools SPP and National Partnership funding, and the Nation Building and Jobs Plan, which incorporates Building the Education Revolution.

 
The Nation Building and Jobs Plan program incorporates recurrent and capital expenditure elements. It should also be noted that in Table 8.2, the National Partnership funding line items under government schools include the total funding provided for all three school sectors. This reflects the transfer of funding arrangements under the funding agreements between DEEWR and the States and Territories.
 

Table 8.2     Australian Government specific purpose payments for schools by government/non-government,
                     recurrent/capital, Australia, 2009
–10 financial year (accrual basis) ($'000)

 

Australia

Government schools

 

Recurrent expenditure

 

National Schools SPP(a)

3,286,594

Total recurrent government schools

3,286,594

Capital expenditure

 

Capital allocation(b)

 

Total capital government schools

 

Total recurrent & capital government schools

3,286,594

National Partnership payments

 

Smarter Schools(a)

 

•  Improving Teacher Quality

7,731

•  Literacy and Numeracy

66,666

•  Low SES School Communities

135,137

Digital Education Revolution(a)

174,196

Trade Training Centres in Schools(a)(c)

267,377

Closing the Gap – Northern Territory(a)

 

•  Teacher housing

5,670

•  Quality teaching, accelerated literacy

13,358

•  Supporting remote schools – additional teachers

17,700

Youth attainment and transitions(a)

 

•  Maximising engagement, attainment and successful transitions(d)

32,051

Total National Partnerships

719,886

Total National Partnerships, recurrent & capital government schools

4,006,480

Nation Building and Jobs Plan

 

Building the Education Revolution(a)

6,432,025

Total Nation Building & Jobs Plan

6,432,025

Total Nation Building & Jobs Plan, National Partnerships, recurrent & capital government schools

10,438,505

Non-government schools

 

Recurrent expenditure

 

National Schools SPP(a)

6,325,206

Total recurrent non-government schools

6,325,206

Capital expenditure

 

Capital allocation(a)

138,268

Total capital non-government schools

138,268

Total recurrent & capital non-government schools

6,463,474

National Partnership payments

 

Smarter Schools

 

•  Improving Teacher Quality

5,211

•  Literacy and Numeracy

24,334

•  Low SES School Communities

16,682

Digital Education Revolution(a)

82,670

Trade Training Centres in Schools(a)(c)

54,245

Closing the Gap – Northern Territory(a)

 

•  Teacher housing

412

•  Quality teaching, accelerated literacy

2,357

Total National Partnerships

185,911

Total recurrent, capital & National Partnerships

6,649,385

Nation Building and Jobs Plan

 

Building the Education Revolution(a)

2,946,492

Total Nation Building and Jobs Plan non-government schools

2,946,492

Total recurrent, capital, National Partnerships and Nation Building & Jobs Plan
non-government schools

9,595,877

All schools

 

Total recurrent

9,611,800

Total capital

138,268

Total National Partnership payments

905,797

Total Nation Building & Jobs Plan

9,378,517

Total

20,034,382

 

(a) Reporting period 1 July 2009–30 June 2010
(b) From 1 January 2009 these payments are included in the National Schools SPP.
(c) The Trade Training Centres in Schools Program operates as a ‘deemed’ National Partnership through ‘Overarching Funding Agreements’ with all government and non-government education authorities. It is anticipated that a formal National Partnership will be negotiated and implemented from early 2013.
(d) Youth Attainment and Transitions National Partnership allocations are made to State and Territory Treasuries, which then distribute funds according to implementation plans to benefit all school sectors.
 
Note: National Partnership payments incorporate recurrent and capital elements. The Digital Education Revolution and Trade Training Centres in Schools are capital funded.
 
Source: Data are extracted from the 2009–10 Final Budget Outcome (FBO). The FBO does not contain a split between government and non-government allocation for the Smarter Schools National Partnership expenditure. This table uses data from the 2012 Report on Government Services (ROGS) to provide an estimate of that split. There is a small discrepancy in the Literacy and Numeracy NP expenditure line between the FBO and ROGS but it is not material. The non-government capital grants figure of $138.268 m is sourced from Australian Government DEEWR.
 
See also Additional Statistics Table 60