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Review of Funding for Schooling Final Report | December 2011 Review of Funding for Schooling Final Report December 2011 Expert panel David Gonski AC, Chair Ken Boston AO Kathryn Greiner AO Carmen Lawrence Bill Scales AO Peter Tannock AM ISBN 978-0-642-78222-9 [PRINT] ISBN 978-0-642-78223-6 [PDF] ISBN 978-0-642-78224-3 [RTF] With the exception of the Commonwealth Coat of Arms, the Department’s logo, any material protected by a trade mark and where otherwise noted all material presented in this document is provided under a Creative Commons Attribution 3.0 Australia (http://creativecommons.org/licenses/by/3.0/au/) licence. The details of the relevant licence conditions are available on the Creative Commons website (accessible using the links provided) as is the full legal code for the CC BY 3.0 AU licence (http://creativecommons.org/licenses/by/3.0/au/legalcode). The document must be attributed as the Review of Funding for Schooling—Final Report. Disclaimer: The material contained in this report has been developed by the Review of Funding for Schooling. The views and opinions expressed in the materials do not necessarily reflect the views of or have the endorsement of the Australian Government or of any Minister, or indicate the Australian Government’s commitment to a particular course of action. The Australian Government and the Review of the Funding for Schooling accept no responsibility for the accuracy or completeness of the contents and accept no liability in respect of the material contained in the report. For enquiries please contact: Review of Funding for Schooling Department of Education, Employment and Workplace Relations GPO Box 9880 CANBERRA CITY ACT 2601 The report can be accessed via the DEEWR website at: www.schoolfunding.gov.au Contents Acronyms and abbreviations ................................................................................................... ix Executive summary ............................................................................................................... xiii Recommendations ................................................................................................................ xxi Findings ............................................................................................................................... xxix 1 Schooling in Australia .........................................................................................................1 1.1 Australia’s schooling system ...........................................................................................3 1.1.1 Schools and student enrolments 3 1.1.2 Schooling sectors 4 1.1.3 Student profile within the schooling sectors 9 1.1.4 Choice within the schooling system 11 1.1.5 School resourcing 13 1.1.6 Conclusion 17 1.2 Schooling performance and outcomes .......................................................................... 19 1.2.1 High-performing schooling systems 19 1.2.2 Outcomes in international and national assessments 20 1.2.3 Year 12 or equivalent attainment 29 1.2.4 Developing confident and creative individuals, and active and informed citizens 33 1.2.5 Conclusion 34 2 Current funding arrangements ........................................................................................ 35 2.1 Roles of funding partners and systems ......................................................................... 37 2.1.1 A partnership approach 37 2.1.2 Australian Government funding for schooling 38 2.1.3 State and territory government funding for schooling 42 2.1.4 Role of school systems 45 2.1.5 Non-systemic independent schools 47 2.1.6 Future opportunities 47 2.1.7 Conclusion 53 2.2 Average Government School Recurrent Costs and indexation ...................................... 55 2.2.1 Introduction of AGSRC 55 2.2.2 The calculation of the AGSRC amounts 56 2.2.3 The calculation of the AGSRC index 59 2.2.4 Issues with AGSRC 60 2.2.5 Possible alternatives to the current AGSRC 67 2.2.6 Conclusion 70 2.3 Socioeconomic Status funding model ............................................................................ 71 2.3.1 How the SES model works 71 2.3.2 The concept of need 75 2.3.3 The measure of need 79 2.3.4 Funding Maintenance 82 2.3.5 Minimum public contribution 84 2.3.6 Conclusion 85 iii Review of Funding for Schooling 2.4 Capital funding .............................................................................................................. 87 2.4.1 State and territory government capital funding 87 2.4.2 Australian Government capital funding 90 2.4.3 Private income and support from the community 91 2.4.4 Levels and sources of capital investment in aggregate 92 2.4.5 Adequacy and quality of school infrastructure 96 2.4.6 The capital needs of existing schools 98 2.4.7 Future enrolment demands and new schools 100 2.4.8 Conclusion 101 3 Equity and disadvantage ................................................................................................. 103 3.1 Equity in Australian schooling ..................................................................................... 105 3.1.1 Defining equity 105 3.1.2 Equity in Australian schooling 106 3.1.3 Why equity is important 107 3.1.4 What we are seeking to achieve 108 3.1.5 The role of funding arrangements in achieving greater equity 109 3.1.6 Conclusion 110 3.2 The impact of disadvantage on outcomes .................................................................... 111 3.2.1 Low socioeconomic status 113 3.2.2 Indigeneity 115 3.2.3 English language proficiency 117 3.2.4 Students with disability 119 3.2.5 Remoteness 121 3.2.6 The compound effect of disadvantage 123 3.2.7 Concentrations of disadvantage 124 3.2.8 Conclusion 126 3.3 Funding for educational disadvantage ......................................................................... 129 3.3.1 The emergence of funding for disadvantage 129 3.3.2 Current approaches to funding disadvantage 130 3.3.3 Current overall investment 132 3.3.4 Determining the effectiveness of funding 135 3.3.5 A future funding approach 135 3.3.6 Conclusion 137 3.4 Improving outcomes for disadvantaged students ........................................................ 139 3.4.1 National Partnership arrangements 139 3.4.2 Strategies that improve outcomes 140 3.4.3 Conclusion 145 4 Funding architecture ...................................................................................................... 147 4.1 Funding principles ....................................................................................................... 149 4.2 A resource standard for Australian schools ................................................................ 153 4.2.1 A schooling resource standard 153 4.2.2 Rationale for a resource standard 154 4.2.3 Linking funding to outcomes 156 4.2.4 Scope of costs 160 4.2.5 State adjustments 162 4.2.6 Application 164 iv 4.2.7 Per student amounts – indicative estimates 165 4.2.8 Loadings 166 4.2.9 Indexation and review 170 4.3 A new funding framework ............................................................................................ 173 4.3.1 General recurrent funding 173 4.3.2 Students with disability 183 4.3.3 Capital and infrastructure 185 4.4 Governance and regulation .......................................................................................... 191 4.4.1 National Schools Resourcing Body 191 4.4.2 Roles and responsibilities of the Australian Government and the states and territories 193 4.4.3 Roles and expectations of non-government systems and independent schools 195 4.4.4 Legislation 195 4.4.5 Strengthening regulation and accountability 196 4.5 Philanthropy ................................................................................................................ 199 4.5.1 Philanthropy in Australia 199 4.5.2 Philanthropy in schooling 199 4.5.3 Benefits of philanthropy in schooling 200 4.5.4 Barriers to philanthropic giving to schools 201 4.5.5 Current approaches to philanthropic giving to schools 203 4.5.6 Potential approaches to encourage philanthropic giving 204 4.5.7 Conclusion 206 4.6 Modelled results of the new schooling resource standard .......................................... 207 4.7 Justification for additional investment in Australian schooling .................................. 211 5 Building momentum for change ..................................................................................... 213 5.1 Building momentum for change .................................................................................. 215 5.1.1 The foundations for change 215 5.1.2 National purpose and goals for Australian schooling 217 5.1.3 A great teaching profession 217 5.1.4 Empowered schools and leadership 219 5.1.5 Developing and sustaining innovation 219 5.1.6 Engaged parents 220 5.1.7 Community involvement 220 5.1.8 Quality assurance 221 5.1.9 Conclusion 221 Appendix A – Terms of reference for the Review of Funding for Schooling ......................... 225 Appendix B – Review process and consultation ................................................................... 227 Appendix C – Organisations consulted during the 2010 listening tour ................................ 231 Appendix D – Emerging Issues Paper submissions ............................................................. 233 Appendix E – Panel school visits program ........................................................................... 237 Appendix F – Paper on Commissioned Research submissions ............................................ 241 Appendix G – Public submissions ........................................................................................
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