Ideas@TheCentre
Time to make a deal
The COAG meeting of education ministers today is a multibillion dollar game of Deal or No Deal. There’s a lot at stake and not just the money. At $14.5 billion over six years, the cost of the federal government’s proposed school funding reform is still too high, but has shifted from the realms of the ridiculous. The main problem is the power over school education it accedes to the federal government through the National Plan for School Improvement. The NPSI ought to be the real deal-breaker, but it has been sidelined by bluster about the funding model itself.
The funding model is not terrible. If the same model were implemented by the states, it would basically be a variable voucher system, that is, child-centred and weighted for disadvantage. Yes, there are some key points of weakness. A real voucher model would have a truly sector-neutral funding system, without the penalty for non-government schools. While this aspect of the model is disappointing, the non-government school sector seems to have accepted it.
A real voucher model would also devolve all funds to schools. This is already the case for independent schools and would remain so. Catholic school systems will likely continue to do their own sums. In the case of public schools, though, funding devolution is a state issue. It’s a bit rich to criticise the federal government for meddling in state schools and then berate it for not forcing state governments towards school autonomy.
One of the strongest criticisms of the funding reforms is that they do not explicitly progress school choice. This is true, but neither do they suppress it any more than the existing system. Indeed, they create more potential for school choice. There is nothing in the plan to prevent the development of future policies such as the United Kingdom’s ‘free’ schools, and it would arguably make it easier.
The risk is that in rejecting a pretty good funding model because it is not perfect, we end up with something much worse. If the state and territory ministers say ‘No Deal’ today, we can kiss goodbye any chance of significant funding reform in the next decade. Although the government says it will go ahead with some states on board, it will be all in or all out under a Coalition government.
By focusing on the wrong part of the proposed reforms, the time available to negotiate on the important aspects is dwindling. The prime minister wants these reforms to go through and has already shown willingness to make concessions. The states and territories should accept the funding model but push back on the regulations and red tape. That achieved, we’ll have a school funding model that is at least a step in the right direction.
Jennifer Buckingham is a Research Fellow at The Centre for Independent Studies.
