National Report on Schooling in Australia 2009

Funding Australia’s schools

8.2 An overview of government funding of schools in 2009

In 2009, Australia’s schools funding was impacted by new funding arrangements introduced by the Australian Government. This is outlined in Part 8.1 of this report. The government school funding for 2009 (200809 expenditure) reflects components of the Australian Government’s funding in 2008 under the Schools Assistance (Learning Together – Achievement Through Choice and Opportunity) Act 2004, and new funding arrangements for 2009 specified in the Intergovernmental Agreement (IGA) on Federal Financial Relations.

Federal and State and Territory Government recurrent expenditure on Australia’s schools for 2009 is $38.94 billion and is illustrated in Figure 8.1, broken down by source of funds.

 

Figure 8.1             Recurrent Government funding for school education, Australia, 200809 (accrual basis)

Recurrent Government funding for school education

Note: 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 include only Australian Government Specific Purpose Payments. Other Australian Government funding for schools and students is not included.

Sources: Steering Committee for the Review of Government Service Provision, Report on Government Services, 2011, Tables 4A.67; MCEECDYA National Schools Statistics Collection (NSSC), 2009

See also Additional Statistics: Table 35, Table 41 and Table 47

 

 

Growth in recurrent funding between 2008 and 2009 is outlined as follows:

  • All schools (government and non-government school sectors) increased 6.90%.
    Operating expenditure rose from $36.425 billion in 200708 to $38.940 billion in 200809, an increase of $2.515 billion.

  • Government school sector increased 7.30%.
    Operating expenditure rose from $28.758 billion in 200708 to $30.856 billion in 200809, an increase of $2.098 billion.

  • Non-government school sector increased 5.44%.
    Operating expenditure rose from $7.667 billion in 200708 to $8.084 billion in 200809, an increase of $0.417 billion.

In 2009, the government school sector received 79.18% of recurrent government funding while the non-government sector received 20.82%.

Total government school education funding, on a student per capita basis, was on average $13,544 for the government sector and $6,850 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, 2008–09 financial year (accrual basis)

2009 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

27.415

12,034

2.297

1,947

29.713

8,592

Australian Government

3.441

1,510

5.787

4,903

9.227

2,668

Total Australian/State/Territory Government funding

 

 

 

 

 

 

30.856

13,544

8.084

6,850

38.940

11,260

Average FTE students(a)

2,278,247

1,180,108

3,458,355

 

(a) Average number of full-time equivalent (FTE) students, 2008 and 2009 calendar years. See Glossary for definition of FTE.

Sources: Steering Committee for the Review of Government Service Provision, Report on Government Services, 2011, Tables 4A.6–10; MCEECDYA National Schools Statistics Collection (NSSC), 2009

See also Additional Statistics: Table 35, Table 36 andTable 37

 

The total funding per student over the past four 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 that for the non-government school sector.

The growth in government school student per capita reflects award increases, government initiatives and in 2009 also incorporates a change in funding arrangements by the Australian Government where there was an increase in government funding per primary student, a new broad banded 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 have regard to student profiles and related targeted needs funding.

 

Figure 8.2             Total government recurrent funding, government and non-government schools, 
                                2005
06 to 200809 (actual $ per FTE)

Total government recurrent funding, government and

Figure 8.2 – source data ($)

2005–06

2006–07

2007–08

2008–09

Government schools

11,243

11,874

12,639

13,544

Non-government schools

6,287

6,442

6,607

6,850

Sources: Steering Committee for the Review of Government Service Provision, Report on Government Services, 2008, 2009, 2010,2011, Tables 4A.8–9; MCEECDYA National Schools Statistics Collection (NSSC), 2006, 2007, 2008, 2009

See also Additional Statistics: Table 35, Table 36 and Table 37  for government school data.

 

Given that the Australian Government’s funding of schools in 2009 changed significantly from that in 2008, it is not possible to show a continuation of program funding at a detailed level.

However, the table below reflects the combination of funding approaches over these two years and the new directions of Australian Government funding into a National Schools SPP, National Partnership funding and the Nation Building and Jobs Plan, which incorporates Building the Education Revolution. It should be noted that the Nation Building and Jobs Plan programs incorporate recurrent and capital expenditure elements. It should also be noted that in Table 8.2, the National Partnership funding line items under Government schools includes the total funding provided for all three school sectors. This reflects the initial funding arrangements between DEEWR and the States and Territories.

 

Table 8.2               Australian Government specific purpose payments for schools by government/non-government, recurrent/capital,
                                Australia, 2008
09 financial year (accrual basis) ($'000)

 

Australia

Government schools

 

Recurrent expenditure

 

School grants(a)

1,466,926

National Schools SPP(b)

1,509,518

Indigenous education strategic initiatives(c)

115,635

Targeted programs(a)

261,386

Total recurrent government schools

3,353,465

Capital expenditure

 

Capital allocation(a)

264,241

Total capital government schools

264,241

Total recurrent & capital government schools

3,617,706

National Partnership

 

National Partnership payments

 

•  Improving teacher quality(b)

6,059

•  Literacy and numeracy(b)

70,002

•  Low SES school communities(b)

11,255

•  Digital Education Revolution(d)

738,415

•  Trade training centres in schools(b)

44,369

Total National Partnership

870,100

Total National Partnership, recurrent & capital government schools

4,487,806

Nation Building and Jobs Plan

 

•  Building the Education Revolution(b)

655,284

Total Nation Building & Jobs Plan

655,284

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

5,143,090

Non-government schools

 

Recurrent expenditure

 

School grants(a)

2,730,097

National Schools SPP(b)

2,953,194

Targeted programs(d)

85,863

Total recurrent non-government schools

5,769,154

Capital expenditure

 

Capital allocation(d)

161,705

Total capital non-government schools

161,705

Total recurrent & capital non-government schools

5,930,859

National Partnership payments

 

•  Literacy and numeracy(b)

17,504

•  Digital Education Revolution(d)

423,352

•  Trade training centres in schools(b)

51,495

Total National Partnership

492,351

Total recurrent, capital & National Partnership

6,423,210

Nation Building and Jobs Plan

 

•  Building the Education Revolution(b)

356,545

Total Nation Building and Jobs Plan non-government schools

356,545

Total recurrent, capital, National Partnership and Nation Building & Jobs Plans non-government schools

6,779,755

All schools

 

Total recurrent

9,122,619

Total capital

425,946

Total National Partnership payments

1,362,451

Total Nation Building & Jobs Plan

1,011,829

Total

11,922,845

 

(a) Reporting period 1 July31 December 2008. From 1 January 2009 these payments are included in the National Schools SPP.

(b) Reporting period 1 January 200930 June 2009

(c) Reporting period 1 July– 31 December 2008. From 1 January 2009 these payments are included in the National Schools SPP. The Indigenous Education Strategic Initiatives Programme (IESIP) and the Indigenous Education Direct Assistance (IEDA) Programme terminated in 2004. They were replaced by the Indigenous Education Programs. Data provided are for grants to preschools, schools and higher education institutions or TAFEs.

(d) Reporting period 1 July 200830 June 2009

Note: National Partnership payments incorporate recurrent and capital elements. The Digital Education Revolution and trade training centres in schools are capital funded.

Source: Australian Government DEEWR. All data are from 200809 Financial Budget Outcome except for capital expenditure which is from Steering Committee for the Review of Government Service Provision, Report on Government Services, 2011