Funding Imperatives Colette Colman D eputy Executive Director, ISCA

1. Funding ImperativesColette ColmanDeputy Executive Director, ISCA Steiner Education Australia Wednesday, 7 May 2014

2. Australian school enrolments 2013 Source: ABS Schools Australia 2013 (FT student enrolments) * When including independent Catholic schools, independent sector enrolments are close to 566,000.

3. Enrolment change by sector 1985 - 2013 Source: ABS Schools Australia 2013 (FT student enrolments)

4. Enrolment growth by sector 1995 - 2013 Source: ABS Schools Australia 2013 (FT student enrolments)

5. Secondary enrolment share per sector by capital city Source: ABS Census of Population & Housing 2011

6. Size of Jurisdictions/Sector by Enrolments 2013* Source: ABS Schools Australia 2013 (FTE student enrolments); Department of Education Non-Government Schools Census2013 *Independent Catholicenrolments have been allocated to the independentsector

7. Size of Jurisdictions/Sector by Secondary Enrolments 2013* Source: ABS Schools Australia 2013 (FTE student enrolments); Department of Education Non-Government Schools Census2013 *Independent Catholicenrolments have been allocated to the independentsector

8. Projected enrolment change in all schools 2013 - 2020 Source: Department of Education Projections and ABS Schools Australia 2013 (FT studentenrolments) *Based on average school size by sector for 2013 derivedfrom ABS schools data. ** Note: Projections beyond 2015 impacted by shift of Yr 7 fromPrimary to Secondary in WA & QLD

9. Change in number of independent schools over previous year 1996 - 2013 Source: ABS Schools Australia2013 Note: Figures excludeindependentCatholicschools

10. Average size of independent schools 1980 - 2013 Source: ABS Schools Australia (FT student enrolments; Schools data) *2020 figures based on Department of Education enrolment predictions and assumes number of schools remains stable Note: Figures exclude independent Catholic schools

11. Sector diversity - 2013 Source: Department of Education Non-Government Schools Census 2013 Note: Figures includeindependentCatholicschools

12. Increase in students with disabilities in independent schools 1995 - 2013 Source: Department of Education Non-Government School Census 2013 Note: Figures excludeindependentCatholicschools

13. Increase in indigenous students in independent schools 1995 - 2013 Source: ABS Schools Australia 2013 (Indigenous FTE student data) Note: Figures exclude independent Catholic schools

14. School Staff 2013 Source: ABS Schools Australia 2013

15. FTE student and staff change 2003 - 2013 Source: ABS Schools Australia, 2013

16. Student/Teacher Ratios 1973 to 2013 Source: ABS Schools Australia, 2013

17. Schools recurrent funding by sector 2011-12 Source: Productivity Commission Report on Government Services; Department of Education Financial Questionnaire

18. Average total government recurrent income per student by sector 2011-12 Source: Productivity Commission Report on GovernmentServices; Department of Education Financial Questionnaire; ABS Schools Australia

19. Per capita government recurrent expenditure by sector and state 2011-12 Source: Productivity Commission Report on Government Services 2014

20. Recurrent savings to Governments from independent schools by state 2011-12 ($billions) Total recurrent savings $4.3 billion Source: Productivity Commission Report on Government Services 2014, Department of Education Financial Questionnaire and ABS Schools Australia

21. Total government recurrent funding per student 2011-12 Source: Productivity Commission Report on GovernmentServices; Department of Education Financial Questionnaire; NSW state governmentfundingrates

22. Net recurrent income per student – average school amount by sector by state Source: ACARA My School 5.0 (2012 Financial Data)

23. Government Income per student – average school amount by state & sector Source: ACARA My School 5.0 (2012 Financial Data)

24. Private income per student – average school amount by state & sector Source: ACARA My School 5.0 (2012 Financial Data)

25. Funding models for non-government schools • 1973 Schools recurrent Resources Index (SRRI) Expenditure of each school measured against a standard of government costs for schooling • 1985 Education Resources Index (ERI) School resources and expenditure compared with the costs of educating a child in a government school • 2001 Socio-Economic Status (SES) Student focused proxy measure of the capacity of a school’s community to support it • 2014 Schooling Resource Standard (SRS) Per student funding based on efficient cost of providing schooling to achieve an agreed national standard, incorporating a school community’s capacity to contribute, plus loadings to address disadvantage

26. Proposed ‘Gonski’ model

27. 19% Calculating the loaded Schooling Resource Standard (SRS) Loadings are fully publicly funded Students with Disability Loadings calculated as a percentage of the per student amount English Language Proficiency Indigenous Low SES SRS Components ($) Location Size loading added to base Size 2014 Base SRS per student amount $9,271 for Primary $12,193 or Secondary

28. SRS Funding Model • Base + Loadings • Loadings to address disadvantage - size, location, low SES, SWD, low ELP and Indigenous • Amount of base funding dependent on ‘capacity to contribute’ – for independent and Catholic schools only • Loadings are fully publicly funded • Schools are transitioning to SRS funding

29. Capacity to Contribute • Like the SES, government funding for non-government schools will be adjusted based on the school community’s capacity to contribute to the cost of schooling • Applies to the base SRS per student funding only (loadings are fully publicly funded) • A differential CTC for primary and secondary has been introduced “to reflect the different fee structure in schools in the non-government sector” • The model includes full public funding of the base SRS for non-government special schools (schools catering for students with disability), special assistance schools, majority Indigenous schools and remote ‘sole provider’ schools • Re-calibrated 2014 SES scores being used

30. CTC Settings based on 2014 SRS

31. School Size Loading • The size loading takes into account particular circumstances of small schools and schools outside metropolitan areas • Size loading - an extra $150,000 for primary schools up to 200 students reducing to zero for 300 plus (capped at 15 students) • An extra $240,000 for secondary schools up to 500 students reducing to zero for 700 plus (capped at 100 students) • Subject to transition

32. 19% Size Loading

33. Location Loading • Location loading based on Accessibility/Remote Index of Australia (ARIA) • Measures remoteness on a continuous scale (ranging from 0 to 15) with scores based on road distance to service towns of different sizes • Inner Regional schools - up to 10% of the per student amount • Outer Regional schools - between 10% and 30% of the per student amount • Remote schools - between 30% and 70% of the per student amount • Very Remote schools - between 70% and the maximum loading amount of 80% of the per student amount • Subject to transition

34. Location Loading

35. Low Socio-Economic Status Loading • Based on ACARA Socio-Educational Advantage (SEA) quarter data • Applies to lowest 50 per cent of students • 15 per cent loading - $1,391 per primary student and $1,829 per secondary student for the first student in the lowest SES quartile (Q1) increasing up to 50 per cent for Q1 enrolments over 75 per cent in a single school - $4,635 per primary student and $6,096 per secondary student • 7.5 per cent loading - $695 per primary student and $914 per secondary student for the first student in the second lowest SES quartile (Q2) increasing up to 37.5 per cent for Q2 enrolments over 75 per cent in a single school - $3,477 per primary student and $4,572 per secondary student • Subject to transition

36. Low Socio-Economic Status Loading

37. Indigenous Loading • Every indigenous student in every school attracts a loading • Loading starts at 20 per cent of the per student amount for first Aboriginal or Torres Strait Islander student in a school ($1,854 per primary student and $2,439 per secondary student), increasing up to 120 per cent for schools with 100 per cent Aboriginal and Torres Strait Islander students ($11,125 per primary student and $14,631 per secondary student) • Subject to transition

38. Indigenous Loading

39. Low English Proficiency Loading • Proxy measure • Loading will be initially based on an existing measure of disadvantaged students from a language background other than English, and will be calculated at 10 per cent per student ($927 for primary, $1,219 for secondary) • Based on ACARA parental background data • Subject to transition

40. Students with Disability • In 2014, an interim disability loading (186%) has been set and current funding under the More Support for Students with Disability National Partnership has been extended to 2014 • Non-government special schools will now receive a loaded per student amount of 223% that is fully publicly funded • It is hoped that a nationally consistent data collection on students with disability will inform the development of a funding loading for students with disability • Subject to transition

41. 19% Summary of SRS & Loadings NB: SRS funding, including loadings, is subject to transition.

42. Indexation from 2014 • Schools ‘at the SRS’ will be indexed at 3.6% • Differential indexation arrangements for schools ‘below the model’ and schools ‘above the model’ • Review of SRS indexation rate in 2015, to apply in 2016. • Indexation payments brought forward to match the recurrent payment schedule

43. Transition – schools “below the model” • Schools which will receive more funding under the SRS model are regarded as being ‘below the model’ • From 2015, these schools will receive their existing Commonwealth funding indexed at 4.7%, and a percentage of the additional funding they are entitled to under the SRS (‘additionality’) • Participating state/territory indexation rates differ depending on their bilateral agreement with the Commonwealth; non-participating states have no such arrangements.

44. Example of treatment of School or System "Below" the model Commonwealth share 65% State share 35%

45. Transition Assumptions, State by State for 2014 – 2019- % of ‘additionality’ per year

46. Transition – schools ‘above the model’ • Schools which would receive less funding under the SRS model are regarded as being funded ‘above the model’ • So that these schools do not lose funding in real terms, in 2014 they will receive their 2013 Commonwealth funding plus 3% indexation • Schools ‘above the model’ will continue to receive 3% indexation every year until their public funding meets their SRS entitlement (which has been growing at 3.6% every year) • Participating state/territory indexation rates differ depending on their bilateral agreement with the Commonwealth; non-participating states have no such arrangements.

47. Example of treatment of School or System "Above" the model 20?? 20??

48. Students First Support Fund Five broad reform areas • Quality teaching • Quality learning • Empowered school leadership • Meeting student need • Transparency and accountability

49. Targeted Reviews The Minister has announced five Targeted reviews to commence in 2014 • Legislation • Indexation • Student with Disability • English Language Proficiency • Low Socio-Economic Status

50. Coalition Position • Coalition will match the Commonwealth funding for schools committed by Labor over next four years, including indexation • All states and territories will receive the Commonwealth funding for schools committed by Labor regardless of whether they signed up • Coalition will amend the Act to remove the “command and control” features