Department of Education and Training Submission to the Senate Select Committee on School Funding Investment April 2016

1. Introduction

1.1 The is committed to delivering a world class education system in which Queensland students can develop the knowledge, skills and qualities they need for a bright future, and contribute to Australia’s future economic prosperity and social cohesion.

1.2 All Queensland children and young people should benefit from the opportunities a quality education provides, regardless of their background, or where they live or attend school.

1.3 The changes to federal funding arrangements as signalled in the 2014-15 Australian Government Budget jeopardise Queensland’s ability to realise this goal by placing approximately $3.7 billion (of which in excess of $1.2 billion relates to indexation alone) in Queensland state schools funding at risk. Such a reduction in funding is the equivalent of approximately 4000 fewer teachers and compromises Queensland’s ability to deliver on education reform commitments or maintain and enhance its current improvement trajectory of student results.

1.4 Queensland’s priority is to secure a firm commitment from the Australian Government to school funding arrangements that are fair, transparent, effective, flexible and sustainable. At a minimum, this requires the Australian Government to provide sufficient long term funding certainty that reflects the actual and rising cost of education, respects the Queensland Government’s role as the education system manager, and does not compromise Queensland’s front line services or ability to continue to lift student outcomes.

2. Education Service Delivery in Queensland

2.1 There are currently 1733 schools in Queensland. Of these, 1236 are state schools and 497 are non-state schools. State schooling remains the prevalent form of school education in Queensland, representing approximately 67 per cent of all school enrolments as at 2015, which is above the national average.

2.2 In 2015, there were 787,000 Queensland school students from Prep to Year 12, with 525,000 (67 per cent) of these in the state school system, and 262,000 (33 per cent) in the non-state school system.

~ 1 ~ TRIM: 16/114258

Queensland Department of Education and Training Submission to the Senate Select Committee on School Funding Investment April 2016

2.3 A number of demographic and geographic factors pose particular challenges for education service delivery in Queensland.

2.4 Queensland has one of the highest average population growth rates of any Australian jurisdiction at 1.5 per cent. A relatively high proportion of Queensland’s current population is aged 0-4 years (6.7 per cent), which will have a flow-on effect into the school-age cohort in future years. An additional 257,000 school-aged children projected to be living in Queensland by 2031 compared with 2014.

2.5 Queensland is Australia’s second largest state geographically and has a highly decentralised population, with the majority of Queenslanders residing outside the densely populated south-east corner. More than one third of Queensland schools are located outside metropolitan areas. Given the geographical spread of the Queensland population, there are a large number of small schools, with approximately 26 per cent of all Queensland schools having fewer than 100 students.

2.6 Queensland is also home to a higher proportion of communities with below average levels of socioeconomic status. In 2015, Queensland had the second highest proportion of children identified as developmentally vulnerable of all states and territories across all domain areas in the Australian Early Development Census. While most Queensland children are developmentally on track and Queensland children have shown the greatest improvement in cognitive and language skills compared with any other state or territory since 2009, 26.1 per cent were still assessed as being developmentally vulnerable on one or more of the five domain areas.

2.7 A significant proportion of Australia’s Aboriginal and Torres Strait Islander students reside in Queensland. The number of Aboriginal and Torres Strait Islander full time equivalent (FTE) students enrolled in all Queensland schools as at August 2015 was 59,000, which represents 30 per cent of the nation’s Aboriginal and Torres Strait Islander student enrolments. Almost 50,000 of these (84 per cent of Queensland’s Aboriginal and Torres Strait Islander students) were enrolled in Queensland’s state schools in remote, rural and urban areas.

~ 2 ~ TRIM: 16/114258

Queensland Department of Education and Training Submission to the Senate Select Committee on School Funding Investment April 2016

3. Queensland School Education Performance

3.1 Queensland has demonstrated the greatest improvement of any jurisdiction since national literacy and numeracy testing commenced in 2008. In 2015, on average, across all year levels and NAPLAN test areas, nine out of ten students were meeting or exceeding the National Minimum Standard.

3.2 The introduction of the Prep year in Queensland has coincided with a lift in NAPLAN results, which show a broad improvement in line with Prep cohorts progressing through Years 3, 5 and 7.

3.3 Preliminary data from 2015 shows almost 95 per cent of Aboriginal or Torres Strait Islander state school students achieved a Year 12 certification (either a QCE or Queensland Certificate of Individual Achievement) compared with almost 97 per cent for non-Aboriginal or Torres Strait Islander students. This historic achievement demonstrates a closing of the gap between Indigenous and non-Indigenous students in obtaining Year 12 certification in state schools.

3.4 Over the last decade, key Queensland education reforms that continue to contribute to these improved outcomes include: introduction of the Preparatory year of schooling in Queensland; universal access to early childhood education and associated integrated early childhood service delivery; the shift of Year 7 into high school; adoption of the Australian Curriculum and development of Curriculum into the Classroom resources to suit the Queensland context; and the Great Results Guarantee / Investing for Success initiatives which have provided a significant funding boost to schools to invest in evidence-based strategies to improve student learning.

3.5 While Queensland has seen significant improvement in student outcomes, further uplift is required – including for those students who are most vulnerable. The Queensland Government has an unwavering commitment to making sure every student has quality learning experiences that deliver improved student learning outcomes and employment prospects and support economic growth and productivity improvement across the state.

3.6 The Queensland Government’s commitment to continuous improvement in education is clearly articulated in Advancing Education: An Action Plan for Education in Queensland. This plan sets out a strategic agenda for achieving a world class education system in

~ 3 ~ TRIM: 16/114258

Queensland Department of Education and Training Submission to the Senate Select Committee on School Funding Investment April 2016

Queensland, from early childhood and school education through to transitions into post- school education, training and employment. It includes specific actions in school education, including transforming the teaching of science, technology, engineering and maths (STEM) in state schools, developing the capability of teachers to teach STEM, providing more opportunities to learn languages in schools, supporting student learning, particularly in literacy and numeracy and increasing opportunities for students to study coding and robotics at school.

4. Investment in School Education in Queensland

4.1 The Queensland Government recognises that increased funding alone will not improve school performance and student outcomes. However, Queensland has demonstrated a record of considered, targeted and highly effective investments in education. Injections of additional school education funding in Queensland have supported innovative system interventions and school activities based on the best available evidence, and resulted in sustained improvement in Queensland student outcomes.

4.2 Queensland has not secured the advancements of the past ten years alone; the Australian Government has been a partner in these achievements, and further improvements will require a continued strong commitment from both the state and federal governments.

Current funding parameters

4.3 The public funding budget for state school education in Queensland in 2015-16 was $7.6 billion, sourced from Australian Government, Queensland Government and other sources. The budgeted public funding for non-state schooling and other education- related services from the Australian and Queensland governments was $3.1 billion, including capital assistance for non-state schools1.

4.4 In total, the Queensland Government contributes approximately $6 billion per year toward state schooling through money for staffing allocations, school appropriations and other support. In addition, the Queensland Government contributes more than $600 million per year towards non-state schools through a needs-based funding model.

1 Note this excludes fees and other private funding for non-state schools. ~ 4 ~ TRIM: 16/114258

Queensland Department of Education and Training Submission to the Senate Select Committee on School Funding Investment April 2016

4.5 There is currently an overly complex national architecture associated with federal funding arrangements. Queensland has repeatedly raised concerns with respect to matters such as inclusion of complex funding formulae and overly prescriptive policy and reporting requirements in the Australian Education Act 2013. Despite a commitment by the Australian Government to reduce the ‘command and control’ elements of the Australian Education Act 2013, Queensland’s concerns have not been addressed.

4.6 Current funding arrangements do not provide the transparent and equitable distribution of federal funds amongst states and territories on the basis of need that was originally anticipated. The various agreements entered into by different jurisdictions, and the inherent complexity of the federal funding model, have resulted in differential arrangements across the nation.

4.7 Unlike states and territories which signed a six-year National Education Reform Agreement (NERA) funding agreement with the former federal Labor government, Queensland instead came to an arrangement with the current Australian Government for additional funding over a three and a half-year period from 2014 to 2016-17.

4.8 This arrangement was executed via an exchange of letters between the Federal Minister for Education and the Queensland Minister for Education and Training in December 2013.

4.9 Through this arrangement, the Australian Government committed to deliver ‘Students First’ funding of an additional $794.4 million funding for Queensland state schools from 2014 to 2016-17, effectively matching the former ‘Better Schools’ Australian Government funding trajectory over the same period. The Australian Government also committed to additional funding for Queensland’s non-state schooling sector over the forward estimates period.

4.10 There were no conditions set in relation to how federal funding should be allocated to Queensland state schools. Although no state funding commitment was sought from the Australian Government as part of the current arrangement, the Queensland Government has nonetheless committed an additional $1 billion in funding over the period 2014 to 2019 towards extra school teachers, guidance officers, school maintenance, support for independent public schools and support for the non-state schooling sector.

~ 5 ~ TRIM: 16/114258

Queensland Department of Education and Training Submission to the Senate Select Committee on School Funding Investment April 2016

4.11 States and territories that signed up to the six-year NERA had specific expectations for funding to increase significantly in 2018 and 2019 in order to achieve 95 per cent of their Schooling Resourcing Standard (SRS).

4.12 While federal funding arrangements for Queensland beyond 2017 were not specified in the exchange of letters which formed Queensland’s school funding agreement, Queensland has anticipated receiving its fair share of any future funding for states and territories based on a clear consideration of the needs of its student population.

4.13 The Queensland Government uses its own well established, needs-based model for allocation of the combined federal and state funding pool to state schools.

4.14 Queensland allocates its additional $794.4 million Australian Government funding directly to state schools as appropriations. For 2014 and 2015, this funding was allocated to schools through the Great Results Guarantee (GRG) funding program. In 2016 and 2017, Investing for Success funding replaced GRG, using an enhanced needs-based approach with a base per-student amount plus loadings for low socio-economic status, Aboriginal or Torres Strait Islander students, English as an Additional Language/Dialect, refugees, students with disabilities, school size and location.

Current Australian Government Position and Implications for Queensland

4.15 The Australian Government has advised it will commit to Students First funding over the forward estimates period to 2016-17 only, and that it will enter into negotiations with the states, territories and non-government schooling sectors for funding from July 2017 onwards.

4.16 The Australian Government has already signalled specific changes to previous funding arrangements, as announced through the 2014-15 Federal Budget and subsequent correspondence. These changes would:

• see a move away from the previous commitment to reach 95 per cent of the SRS by 2019;

• adjust the annual federal indexation rate from a rate of 4.7 per cent based on the actual costs of school education to the consumer price index (CPI) (indicatively 2.5 per cent); and

~ 6 ~ TRIM: 16/114258

Queensland Department of Education and Training Submission to the Senate Select Committee on School Funding Investment April 2016

• re-align the Australian Government public funding share for all state and territory government schooling sectors to 16.8 per cent of their theoretical SRS.

4.17 As a result of these changes, Queensland’s state schools are at risk of being approximately $3.7 billion worse off compared to the ‘Better Schools’ funding path (with indexation alone in excess of $1.2 billion). There would also be financial impacts for Queensland’s non-state schools.

4.18 For state schools, the Australian Government’s retraction of existing funding parameters from 2018 onwards would:

• amount to the equivalent of 4000 fewer teachers;

• impact on Queensland’s capacity to deliver on ambitious national or state education reform priorities; and

• jeopardise Queensland’s capacity to maintain or enhance the current improvement trajectory of Queensland student results.

4.19 Rising costs of education are influenced by school-related factors such as wage increases, technology costs and capital resources and maintenance. The proposal to link education indexation to CPI does not take account of the actual costs of education provision. Due to the compounding nature of annual indexation arrangements, a decision to revise school indexation to CPI at this point in time would have significant impacts on the quantum of funding available into the future.

4.20 As outlined earlier, additional Australian Government funding has been provided directly to state schools in Queensland for investment in initiatives and strategies that are working to improve student outcomes. For the past several years there has been a lack of certainty at the system and at the individual school level about the ongoing provision of Australian Government funding past the forward estimates.

4.21 Due to the uncertainty surrounding Australian Government funding for schooling beyond the current forward estimates period, the ability of the state education system and individual schools to undertake long-term planning to support further improvements in student outcomes has been compromised.

~ 7 ~ TRIM: 16/114258

Queensland Department of Education and Training Submission to the Senate Select Committee on School Funding Investment April 2016

4.22 The provision of additional funding over 2014 to 2016-17 has significantly raised expectations amongst schools and opened up opportunities for schools to deliver an increased level of service to Queensland families. A change to the trajectory of Australian Government funding, whether by a realignment of Queensland’s proportionate share of the SRS or a reduction in indexation rates will have a direct adverse impact on schools and their students. In real terms, this will result in reduced services and programs in schools compared with what would have been able to be delivered under the anticipated ‘Better Schools’ funding path.

4.23 State and territory commitment to the national education policy reform agenda has been based on a common understanding of continued federal funding at established levels. A change to the federal funding path may jeopardise the achievement of key national policy goals and objectives, and must be accompanied by a discussion with states and territories about which national reforms can remain a priority.

4.24 As seen in the early childhood education sphere, the perpetual and prevailing uncertainty with respect to adequate and sustainable funding continues to threaten services and programs, making long term planning for this sector impossible.

5. Queensland’s future school funding requirements

4.25 Queensland’s priority is to secure a firm commitment from the Australian Government to school funding arrangements that are fair, transparent, effective, flexible and sustainable.

4.26 In particular, the Queensland Government is seeking:

• long-term funding certainty for Queensland’s school education system and individual schools;

• a level of Australian Government funding for schools in Queensland that is sufficient to drive the Queensland Government’s school improvement agenda, lift learning outcomes across the state for all Queensland students and provide for Queensland’s involvement in delivering on national school education priorities;

• funding increases that recognise the rising costs of school education delivery;

~ 8 ~ TRIM: 16/114258

Queensland Department of Education and Training Submission to the Senate Select Committee on School Funding Investment April 2016

• recognition of the state’s role as education system manager, with flexibility to determine its own funding contribution and the educational services and interventions that best suit our students’ and school communities’ needs;

• the ability to direct the combined pool of state and federal funding for state schools on a needs basis, in line with Queensland’s state school resource allocation model;

• an arrangement that does not compromise Queensland’s ability to deliver across all its frontline service areas of responsibility nor compromise individual schools’ capacity to continue planned improvements; and

• sensible and appropriate levels of regulatory and reporting requirements, which do not increase administrative burden on schools, reflected in amendments to the Australian Education Act 2013.

4.27 These outcomes can only be achieved through a truly collaborative negotiation process in relation to school funding involving the Australian Government and all states and territories, with transparency around proposed funding models, budget impacts and other terms and conditions.

4.28 The Queensland Government stands ready to participate in these negotiations in good faith with a view to providing certainty for Queensland schools and achieving improved educational outcomes for Queensland students.

~ 9 ~ TRIM: 16/114258