The passage of Gonski 2.0 is a victory for children over politics


Peter Goss, Grattan Institute and Julie Sonnemann, Grattan Institute

In the early hours of this morning, the Senate did something profound. It voted to improve the way we fund our schools. This is a victory for the children of Australia.

A Senate packed with cross-benchers and minor parties was supposed to make political compromise harder, and good policy all but impossible.

But the cross-benchers have proved the naysayers wrong. Not only did they pass Education Minister Simon Birmingham’s needs-based funding plan – an olive branch summarily dismissed by Labor – but they negotiated amendments to improve the plan.

What will change with the passage of Gonski 2.0?

Birmingham’s original package, the so-called Gonski 2.0, makes key improvements to the existing national school funding framework established by the Gillard government in the 2013 Education Act (explained further in our Senate Inquiry submission).

First, Commonwealth funding of schools increases, and is also more consistent across all states and sectors.

Commonwealth funding to government schools will rise from an average of 17% of their needs in 2017 to 20% by 2023, and funding to non-government schools will rise from an average of 77% to 80%.

Second, Gonski 2.0 removes some of the special deals so that underfunded schools will get the Commonwealth share of their target funding within six years – much sooner than under the 2013 Act. Many overfunded schools will have their funding growth rates slowed, and a small number of the most overfunded schools will have their funding cut over the next ten years. This is an important break from the former Labor government’s promise, embedded in the 2013 Act, that “no school will lose a dollar”.

Third, it makes several changes to the funding formula. One big change is a revised parental “capacity to contribute” measure, which removes the “system weighted average” approach for non-government systemic schools. The Catholics hate this change, because it overturns a generous funding arrangement that enabled them to keep primary school fees low regardless of how wealthy the parents are.

Fourth, Gonski 2.0 reduces the indexation rate for school funding in line with low wages growth. It will remain at 3.56% a year until 2020, but from 2021 a new and lower floating indexation rate will apply, based on wage price index and CPI. (A minimum floor of 3%, added at the urging of stakeholders, is problematic but far from a deal-breaker.)

Lastly, Gonski 2.0 creates a stronger link between Commonwealth funding and agreed national initiatives to improve student performance.

What tweaks were made at the eleventh hour?

A number of last minute “tweaks” were made to secure the required Senate votes.

  • Underfunded schools will get much-needed extra money more quickly – over six years rather than ten. This change means an extra $4.9 billion will be provided on top of the $18.6 billion in the May Budget.

  • A 12-month “transition package” of $50 million will be provided to systemic schools, whether Catholic or independent, and there will be an (overdue) review of the parental “capacity to contribute” measure.

  • State government funding appears to be subject to a “clawback” mechanism, similar to what we proposed in our Senate inquiry submission. This is designed to ensure state governments step up. It is not clear exactly how it will work, but if a state fails to provide at least 75% of the target funding to government schools, or 15% of the target for non-government schools, the federal government will withhold some funding to that state.

  • A new body will be established to conduct independent reviews of the school funding formula and ensure transparency on the distribution of funds.

What this means for schools

Schools will now have more certainty on how they will be funded – at least from the Commonwealth.

The concept of needs-based funding now has across-the-board support, even if there are differences on the details and how much money each party is promising. Importantly, Commonwealth funding to disadvantaged schools will now be delivered a lot faster.

Attention will now turn to the states, given that they provide most of the funding for government schools, which educate the bulk of Australia’s disadvantaged students. Further questions will continue to be raised about the impact on students with disabilities.

Winners and losers

The only way to determine which schools are “winners” and which are “losers” is by looking at what would have happened if the Senate had voted down Gonski 2.0. So,
here’s the “scoreboard” under Gonski 2.0 compared to the 2013 Education Act.

Government schools are (mostly) winners

Government schools in all states, and in the ACT, will get more Commonwealth funding.

Based on the new six-year timeframe for underfunded schools, our latest modelling suggests government schools in NSW will get between $200 million and $300 million more federal funding over the next four years. For Victoria, the boost is between $300 million and $400 million. Both Queensland and South Australia appear to get between $100 and $200 million extra. The boosts for government schools in Tasmania and the ACT are smaller in dollar terms, but still substantial per student.

The biggest winners are state schools in Western Australia, which will get about $500 million more over four years, and at least $2 billion more over a decade.

Government schools in the Northern Territory will lose compared to their current level of Commonwealth funding, which is higher than other jurisdictions – but a transition package has been provided.

Catholic schools will lose

Catholic schools are right to say they will be worse off than under the 2013 Act. Their federal funding is projected to be $3.1 billion lower over the next ten years.

This loss arises mainly from the interaction of two changes to the capacity to pay measure. First, the removal of the generous “system weighted average” in the capacity to pay measure, which treated all Catholic schools as average rather than basing their funding on each school’s parent body. Second, from a change to the curve used to calculate parents’ capacity to contribute in primary schools, because the previous curve had limited how much parents were expected to contribute in even quite advantaged primary schools.

The loss is biggest for ACT Catholic schools, which will see virtually no funding growth for a decade.

A core complaint from the Catholic leadership is that the socioeconomic status (SES) score disadvantages Catholic schools. Accordingly, one of the first jobs of the new National Schools Resourcing Board will be to review the SES scores. The final impact on Catholic schools will depend on the findings of that review.

In the meantime, a one-off transition package of around $50 million over the next year will be delivered to help “vulnerable” Catholic and independent schools adjust to the new arrangements.

Independent schools have mixed outcomes

The impact on independent schools is mixed. Those serving low socioeconomic communities are winners. A handful of (mostly wealthy) private schools will have their overly generous funding arrangements whittled back.

The Senate has done its job today

It is worth celebrating a day where the Australian system of democracy did its job well.

With a better model of school funding approved, policymakers can shift their focus to the harder job of finding ways to lift the performance of Australian students.

Federal Education Minister Simon Birmingham deserves credit for Gonski 2.0: he originated the plan and stared down the scaremongers. The 11th-hour amendments improve the package, and there are no special deals of the type that have infected every previous funding settlement for decades.

In light of the opposition from Labor, the fate of Gonski 2.0 came down to the supportive cross-benchers: The Nick Xenophon Team, Pauline Hanson’s One Nation, Derryn Hinch, Lucy Gichuhi, and Jacqui Lambie. The Greens, having done good work to secure the key amendments, succumbed at the last to the pressure of the Australian Education Union.

The ConversationPaul Keating once memorably dismissed the Senate as unrepresentative swill. If that epithet was ever fair, it is not fair today. Because early today, the Senate cross-benchers stood up for Australia’s children and passed a package that, while it may not be perfect, might just help us move on from Australia’s oldest, deepest and most poisonous debate – how to fund our schools.

Peter Goss, School Education Program Director, Grattan Institute and Julie Sonnemann, Research Fellow, Grattan Institute

This article was originally published on The Conversation. Read the original article.

Advertisements

A Labor government would boost schools’ money but how much would it unpick Gonski 2.0?


File 20170621 4662 87f132
Labor has been steadfast in its opposition to the government’s school funding plan.
Mick Tsikas/AAP

Michelle Grattan, University of Canberra

Malcolm Turnbull is on the brink of a major policy victory after the government mustered ten of the 12 non-Green crossbenchers behind its Gonski 2.0 policy.

The outcome of a week of intense negotiation by Education Minister Simon Birmingham means, barring mishap, the government is set to end this parliamentary sitting on a strong note, at least in policy terms. The Coalition remains in a bad place in the polls.

The new model for schools funding will be much closer to the original needs-based one recommended by the Gonski review, the implementation of which was compromised by a plethora of special deals.

In electoral terms, Turnbull hopes the schools policy will at least partly offset Labor’s usual strong advantage in education. But the fight over schools will still be on, because Labor will be promising a big extra boost to funding.

To get its legislation through, the government has shortened the time frame for delivering funding targets from ten to six years; boosted by $A4.9 billion to $23.5 billion the amount of additional money that will be spent over a decade (including $1.4 billion over the next four years); agreed to establish an independent body to oversee the funding; and endorsed a tight arrangement to prevent states lowering their share of school funding.

In a gesture to a deeply agitated Catholic sector, the government will provide transitional money for it next year, while a review is undertaken of the basis for calculating how much parents should be expected to contribute. Some money will also be available for schools that are part of systems in the independent sector.

This is being couched as transition money so that all systems will come under the new model from the 2018 start. The transition money will amount to $46 million, $38 million for the Catholics.

But the Catholics, who benefited from the previous special arrangements, remain angry. The future political implications of this are yet to be seen.

On Wednesday night National Catholic Education Commission executive director Christian Zahra said that commission representatives had just met with Birmingham who “set out the minor changes” he proposed in response to the Catholics’ “very serious concerns”. But the commission’s position hadn’t changed: the bill “still poses an unacceptable risk to the 1,737 Catholic schools across the country” and should be defeated.

The outcome has left the Greens caught badly short, exposed as under the thumb of the powerful teachers union, the Australian Education Union (AEU).

The government negotiated simultaneously with the Greens and the other crossbenchers. But the Greens were split, unable to finalise a deal even though they did most of the heavy lifting in extracting some major changes and additions to the government’s original $18.6 billion plan.

The result is they’re in the worst of positions. They are unable to claim victory in delivering the more needs-based system. But they have raised the ire of some of their supporters for attempting to reach agreement with the government.

As soon as it knew it had the numbers with the other crossbenchers, the government – unsurprisingly – brought on the second reading vote on the legislation in the Senate.

Greens leader Richard Di Natale said he was disappointed the government had stitched up the deal with the other crossbenchers. The Greens had still been negotiating when the second reading vote was called. “We thought those talks were progressing really well when out of the blue, the bells rang,” he told reporters.

He said the Greens were proud that what they did through their negotiations “was to raise the bar”. But they could not support the “special deal” for the Catholic sector, and had wanted more money for disabled children.

The government is relying on getting the votes of Pauline Hanson’s One Nation, the Nick Xenophon Team, Jacqui Lambie, Derryn Hinch, and Lucy Gichuhi.

Labor has trenchantly opposed the government’s package, saying the $18.6 billion is $22 billion short of what schools would have received under the ALP’s policy.

The opposition’s schools spokeswoman, Tanya Plibersek, says a Labor government would keep the parts of the package that “are practical, like an independent schooling resource body”. It would also retain the cuts to elite private schools.

But Labor has not spelled out how a Shorten government would alter the new model it would inherit and fund more generously.

It says Gonski 2.0 is flawed because it entrenches a skew in federal funding towards non-government schools (traditionally funded by the federal government, which is only the minor funder, compared to the states, of government schools). But that doesn’t deal with the issue of how a Labor government would handle the Catholics.

Labor has taken advantage of the Catholic rebellion. The Catholic sector, having lost the old special deals, would be anxious to extract some new ones from an ALP government that had extra dollars to put around.

So, will Labor give the Catholics any undertakings that in power it would rectify the wrongs it alleges the government will do to the Catholic system? If it won’t, what will be the response of the Catholics?

The ConversationIf, after the dust settles from the Turnbull government making the tough changes, Labor broadly accepts the new model as a basis for its own planned funding, it will have a sound policy position but questions to answer about disingenuous claims we have heard from it in this debate.

Michelle Grattan, Professorial Fellow, University of Canberra

This article was originally published on The Conversation. Read the original article.

Turnbull announces schools funding and a new Gonski review


Michelle Grattan, University of Canberra

The Turnbull government is seeking to seize the political initiative on schools, with a substantial funding injection and the appointment of David Gonski – who delivered the 2011 landmark schools report – to chair a “Gonski 2.0” review on how to improve the results of Australian students. The Conversation

A day after announcing university students will pay more for their education, Turnbull unveiled an extra A$18.6 billion in funding to Australian schools over the next decade, including more than $2.2 billion in this budget for the first four years.

Turnbull said that, under the government’s plan, “every school will receive Commonwealth funding on a genuine needs basis”.

At a joint news conference with Turnbull and Education Minister Simon Birmingham, Gonski – who is a personal friend of Turnbull’s – said he was very pleased the government accepted the fundamental recommendations of the 2011 report, particularly the needs basis. The proposed injection of money was “substantial”, he said.

Turnbull and Birmingham said the plan would ensure all schools and states moved to an equal Commonwealth share of the Gonski-recommended Schooling Resource Standard in a decade. The federal government would meet a 20% share of the standard for government schools, up from 17% this year, and 80% for non-government schools (currently 77%).

Birmingham said 24 non-government schools stood to lose money (there would be some transition money for a couple of these schools with a large number of students with special needs). They are among some 353 presently over-funded schools which will be worse-off under the plan than they would otherwise have been. Australia has more than 9,000 schools in total across the government, Catholic and independent sectors.

Pete Goss, the school education program director at the Grattan Institute, said: “We still need to understand all the details but the overall shape of the package is very encouraging.

“The minister has set a clear 10-year goal of getting every school funded consistently by the Commonwealth. The additional funding will help ease that transition.

“Some schools that have been on a great wicket for a long time will lose out – and so they should. This is a gutsy call and it is the right call.”

Goss said he understood there had been “an internal debate” in the government to arrive at this plan.

The announcement is a substantial turnaround for the government, which had previously planned more modest funding, and refused to embrace the final two years of Gonski.

But Turnbull was in full Gonski mode on Tuesday: “This reform will finally deliver on David Gonski’s vision, six years ago, after his landmark review of Australian school education,” he said.

Turnbull is trying to take some of the shine off Labor’s political advantage on education which, with health, was at the heart of its 2016 election campaign. Next week’s budget will attempt to neutralise some of the Coalition’s problems on health, which saw Labor run its “Mediscare” at the election.

Birmingham said that over the next four years there would be growth in Commonwealth funding of some 4.2% per student across Australia – “importantly, most of it geared into the government sector where need is greater and the gap to close in terms of Commonwealth share is larger”.

He said the government would legislate the decade-long program, and impose conditions to ensure states did not lower their funding. “We will be expecting states to at least maintain their real funding,” he said. “This is about real extra money to help Australian schools and students.”

What Turnbull dubbed the “Gonski 2.0” review will recommend on “the most effective teaching and learning strategies to reverse declining results, and seek to raise the performance of schools and students”.

It will advise on how the extra Commonwealth funding “should be used by Australian schools to improve student achievement and school performance”, Turnbull and Birmingham said in a statement.

Another member of the original Gonski panel, Ken Boston, will also be on the review, which will report to Turnbull in December.

The government says its new arrangements will replace the patchwork of agreements left by Labor.

But Labor’s education spokeswoman Tanya Plibersek said this was “a smoke and mirrors, pea and thimble effort to hide the fact that instead of cutting $30 billion from schools over the decade, this government will cut $22 billion from schools over the decade”.

“The big picture here is that in the 2014 budget, Tony Abbott promised a $30 billion cut to our schools and in the 2017 budget, Malcolm Turnbull wants a big pat on the back for changing that cut to a $22 billion cut,” she said.

“A week out from the federal budget this is taking out the trash,” she said. “They want clear air on budget night.”

https://www.podbean.com/media/player/yzp4x-6a4d89?from=yiiadmin

Michelle Grattan, Professorial Fellow, University of Canberra

This article was originally published on The Conversation. Read the original article.

Australian Politics: 2 August 2013





Australian Politics: 27 July 2013


The Gonski reforms for education in Australia continue to cause problems for the ALP, with several states and territories refusing to sign up. The links below are to articles covering stories on some of the states that refuse to sign up.

For more visit:
http://www.theaustralian.com.au/national-affairs/education/nt-rejects-federal-schools-deal/story-fn59nlz9-1226686542820
http://www.watoday.com.au/wa-news/no-deal-barnett-refuses-to-budge-on-schools-20130726-2qpji.html