Welcome to Eureka Street

back to site

New schools funding model will likely entrench class divides

5 Comments

 

For those new to the topic, it may seem both surprising and unlikely that Australian school funding has been a controversial topic of debate since the 19th century. For over a century, we’ve had twin education systems operating in parallel: a growing government education sector alongside a robust Catholic education sector. 

A recap on the history: in the 1800s, Catholic schools were set up with some government funding, usually for communities where schools didn’t exist. They filled a much-needed gap in the education landscape. Many of these church schools were started by lay people, run by lay people and primarily funded by fees or donations.

In 1872, what state aid that had been available for church schools was withdrawn when Victoria under James Francis passed legislation to introduce free, compulsory, secular education. The act marked a wider shift towards accessible education for all children, regardless of their socio-economic background. Following Victoria’s lead, other Australian colonies followed suit, gradually adopting similar reforms, promoting free state education across the country and laying the foundation for the modern public education system in Australia.

The introduction of free state education initially posed significant challenges to the various Catholic schools in the country, with the new financial strain and competition. Because they received little to no government funding between 1880 and 1967, Catholic schools in Australia struggled financially, relying heavily on church support and community contributions. Many of these schools were staffed by lay people who were laid off in favour of unpaid workers from religious orders because schools could no longer afford to pay teachers.

But in 1967, the then-Premier of Victoria Henry Bolte helped change this situation. Following pressure from the Democratic Labor Party, Bolte introduced recurrent funding of non-government schools at the rate of $10 per primary student and $20 per secondary student — that was per year. The shift was significant because it marked the first time that state funds were allocated to non-government schools in any meaningful ongoing way. And this move set a precedent for government support of non-government schools across Australia. Other states began to follow suit, eventually leading to broader government funding for Catholic and other non-government schools.

The central issue has always been how to manage a system in which a large proportion of students are educated in non-government institutions with parents who pay taxes and demand the same support for their children that the students in government schools enjoy. Now in Australia today, we have 1756 Catholic schools educating over 800,000 students, or one out of every five. These schools are staffed by over 100,000 people. And, despite decades of fiddling about, a workable solution to the funding question has still not been found.

 

'Instead of an education system increasingly divided by class, the Catholic education sector could offer the government a new paradigm for Australian education: a new conception of public education with every school free to maintain its own character.'

 

It seems like the public education lobby seems forever stuck behind the Maginot Line, ready to fight the war it lost in 1967 when Henry Bolte recommenced the funding of non-government schools.

Meanwhile, almost every country in the OECD funds non-government schools, but none uses a funding model like our School Resource Standard (SRS) funding model, whose faults are profound but hidden behind the ‘needs-based’, ‘sector-blind’ slogans.

One of the main features of the SRS funding model, which is effectively just a rebadged version of the Howard Government’s socio-economic status model, is the variation of funding for non-government schools according to the median income of their parents. Schools where the median income (or ‘capacity to contribute’) of parents is high will find the base funding of students reduced by as much as 80 per cent; schools where the capacity to contribute of parents is low will have it reduced by the minimum amount (10 per cent). The difference in funding is meant to be made up by school fees, based on the assumption that wealthier parents have greater capacity to make up that difference, though the income of parents rightly has zero effect on the basic government funding of government schools.

The system is slowly being phased in, to allow schools to transition over time, with full implementation expected by 2029. What it means is that schools at the upper and middle parts of the parental income spectrum will find budgets getting tighter each year for the next few years. Parents at those schools will likely find their school fees increasing accordingly.

The main issue with this model is that, rather than creating a fairer and more equitable school system, it will likely further entrench class divides within the system. As fees rise, parents from well-off families might still decide that sending their children to non-government schools is worth the extra cost. However, those with less means (already stretched by increasing mortgage and other living expenses) will find it increasingly difficult to afford fees.

The worst affected schools will be those whose parents earn higher incomes but which have kept their fees low so that poorer families may also enrol their children in them. The presence of higher income families will cut their government funding, forcing them to put up their fees and thus drive the lower-income families out of them.

Even a school with many relatively low-income parents will find it difficult to maintain low fees for students from poorer families, given most of those who can afford to send their children to that school will not be from the lowest income brackets (hence reducing their SRS funding overall).

To be clear, this is what we will be seeing playing out over coming years, and the effects won’t be felt just in the non-government sector. Government schools in middle-income areas in particular will find the demands on places increase, as local non-government schools become progressively less affordable for lower-income families.

However, this doesn’t need to be the case. We might have taken a wrong turn (after a series of wrong turns), but there’s a way to create an education system that is fair and equitable, in which both government and non-government schools work together to educate all students.

The big obstacle to fair funding is the way in which we conceptualise public education. Generally, people conceive of it as education in schools owned by the government. We need to see it as education which is accessible to the public. The comparison would be how we see public health as health accessible to the public and happily pay Medicare rebates to private doctors for providing health care and Pharmaceutical Benefits Scheme money to private chemists for dispensing prescriptions. Reconceptualising education in this way would require a change in thinking, not just of the government but also the non-government education sector.

The one stakeholder that might lead this change of thinking is the Catholic education sector. Not only are they the largest non-government education entity, they also represent schools at all levels. One way that the Catholic education sector might go about boldly shaking up education funding in Australia and setting out a pathway to a better and more sustainable system is to embrace the idea that they are part of a ‘public’ education sector offering education that is accessible to the public. Some ways this might be done include:

 

  • promising to take on a priority basis and free of fees any student in out-of-home care and any student with a disability;
  • working to achieve 20 per cent of Catholic school enrolment coming from the bottom quartile of the SES levels;
  • capping primary school fees at, say, $1,000 and secondary school fees at, say, $2,000 — lower, if possible;
  • accepting the same teaching loads and class size maxima as apply in each jurisdiction’s government schools;
  • introducing a classroom teacher category equivalent to the learning specialists in Victoria to keep the best teachers full-time in the classroom;
  • ending the Choice and Affordability Fund by redirecting the money to a genuinely needs-based funding scheme.

 

In essence, the Catholic system would be offering to take on about as great a proportion of more-costly-to-educate students as the government system, to become more accessible to poorer families and to forego any cost advantage from treating its teachers less well than government schoolteachers are treated.

In return, all Catholic and other participating non-government schools — all of which could be called partnership or community schools — would receive the full schooling resource standard. No longer could the government cut the SRS for students with a lower SES, a disability or an Indigenous background just because they attended a school with middle-class parents.

Disadvantage loadings would be paid in full as they are now. The Catholic character of such schools would be protected. If a few high-fee Catholic schools wanted to stay out of the partnership system because they wanted to compete with high-fee non-Catholic schools, they could.

The National Catholic Education Commission should consult with its state bodies on details. In the end, we would have a system like New Zealand in which Catholic schools are almost fully funded by the government in return for very low fees and thus accessibility.

In the ongoing debate about funding of non-government schools, it’s crunch time as new SRS arrangements take hold in many schools across Australia. But it’s not too late to change course. Instead of an education system increasingly divided by class, the Catholic education sector could offer the government a new paradigm for Australian education: a new conception of public education with every school free to maintain its own character.

 

 

 


Chris Curtis is a former teacher and university tutor who has retained an interest in education and the only person in the country who put a funding model to the Gonski panel, which ignored it.

Main image: Chris Johnstone illustration.

Topic tags: Chris Curtis, Schools, Funding, SRS, Education, Equality, Class, Education

 

 

submit a comment

Existing comments

The hidden factor in Catholic school funding is the Australian Parents' Council. Set up to press the claims of parents to have a say in the education of Australian children, its development as an anti-statist organisation, its leadership over many years has badly misread the post-Keynesian, neoliberal moment, intent upon deregulation and the introduction of market-principles across all aspects of public policy.

Senator Kemp himself addressed this shift at the APC Conference 1997, where in answer to a question by me he declared that it would make absolute sense for the state to fully-fund Catholic schools because of their commitment to social justice. This was received with loud squawks of objection from Mrs Margaret Slattery, their then President, who misreading the Senator's remarks, declared that Catholic education would never submit itself to state control.

Meanwhile the logic of the Senator's remarks, now pretty much de rigueur as the rationale underpinning all public expenditure has finally begun to hit home, more than twenty years after I raised this as a matter of pressing concern for Catholic educational policy makers.

The machinery of Catholic school funding is palpably dominated by those who still regard state-aid as a socialist threat to Catholic schools.


Michael Furtado | 17 July 2024  
Show Responses

Michael,

Thank you for the historical information. I do not know what role the Australian Parents Council plays today. The threat to the Catholic education system is not from the state but from those who desire every child to be in a state school and who would deny all funding to non-government schools, Catholic or otherwise, to achieve that end. The Catholic education sector needs to reframe the whole debate or it will be sidelined. By way of illustration, for several years, I have advocated that Catholic schools need to be renamed, not to hide their Catholic identity but to emphasise their connection with the ideal of community; e.g., not St Mary’s, Greensborough, but St Mary’s Greensborough Community School (the word order and the consequent missing comma are deliberate); not Loyola College, but Loyola Community College. I was therefore pleased to pass by Holy Spirit Community School in North Ringwood this week, but I know of no other examples.


Chris Curtis | 20 July 2024  

Thank You, Chris, and I agree with your proposition. If Catholic schools are to have meaning in a contemporary global culture the only sense that can be made of their commitment to the common good is, among other things, to call themselves Catholic community schools or, better still, Catholic COLLEGES.

Care would need to be exercised to ensure that such nomenclatures aren't misread as schools or colleges for the Catholic community. Indeed, as much contemporary Catholic theology avers, the Catholic community, both philosophically and notionally, may well include some who have no formal connection with the Catholic Church.

Perchance you have misread me because the Australian Parents Council has no formal connection with the state and, since you and I are deeply committed to researching that most fundamental aspect of the point at which the Catholic Church intersects with the state, principally through the complex discourse of funding, an abject disregard for the role that the APC plays in shaping this in its current form concerns me.

The narratives that influence outcomes for Catholic schools are manifestly many that intersect and impact upon, as ES shows, religious education, Catholic practice, classroom pedagogy and a multitude of other factors beyond affordability.


Michael Furtado | 24 July 2024  

The absence of correspondence here in what's widely regarded as the only Australian e-journal with a faithfully-executed policy of informed exchange on matters abjectly lacking coverage in other faith-sponsored journals, deserves exemplification.

One instance of this is, having repeatedly approached Gerry Gleeson, who chaired the National Catholic Education Commission, without response, I approached him to introduce myself at the 1996 National Catholic Education 1996 Conference and was snubbed.

Therein some of the more problematic aspects of a fuller school-funding policy discourse, which includes many baffling and worrying practices, ostensibly buried in the vast mire of history, but outside the remit of Gonski and accordingly unavailable for critical public scrutiny.

One of these, viz. the extent to which both major political parties are held to ransom by a cabal of Catholic politicians on both sides, illustrates the almost crippling impossibility of all people of good will to re-examine and open up such a historically divisive and complex matter for improvement in a vastly different context a half-century after Peter Karmel reported on non-government school-funding.

This has resulted in unseemly silence, born of a fortress mentality, that currently cripples just, open and necessary Catholic accountability.

No synodal Church should tolerate such silence!


Michael Furtado | 28 July 2024  

Hi Chris, in the absence of other contribution might we take our exchange in another direction?

Catholic Social Teaching, and especially the common good, is the foundation principle on which Catholic Education is based. It eschews both extreme individualism and Marxist-Leninist collectivism, advocating a centrist position so earnestly that it forgot that centrism was only one part of Nazism's enormously complex and violent politicism.

When Gonski accepted his commission, he had to work with what he'd got. As a highly successful businessman, he recognised that vested interests, from all sides of the policy's complex intersecting fences, have to be accommodated.

Accordingly, it took both a research-based Policy Masters and then a doctorate for my work to get published. For me this never led to the kind of post-doc research that I desired, because those positions were already filled by ideological Cold War warriors on all sides. At best I was able to contribute in a minuscule way to a possible future for Catholic schools in the complexity of arrangements that constitute Australian schooling.

The challenge then is, rather than to point to the logic of your unrequited position, to acknowledge that history has to be worked with, patiently and incrementally.


Michael Furtado | 05 August 2024  
Join the conversation. Sign up for our free weekly newsletter  Subscribe