Chapter 1
The changing landscape
The 1989 Hobart Declaration which produced the National Goals of Schooling
set in train a major series of initiatives within Australia's public education
systems. Eight key learning areas were identified and the State and Territory
governments embarked on a rigorous program of development of curriculum
frameworks. At the same time as the curriculum was being defined and refined
within the eight Key Learning Areas, major changes were occurring outside
schools which would have a great impact on schools and their communities.
First, there has been a very rapid expansion in technology. The previous
commonwealth government policies saw a rapid increase in the retention
rates of students through to year 12 with the establishment in the post-compulsory
years of vocational education and training opportunities in schools. the
youth market was also shrinking rapidly.
Suddenly there were many more young people in education and training
than at any time in Australia's history. Higher retention rates meant
that secondary schools were having to cater for greater numbers and a
greater diversity of students, with more students destined both for university
and for TAFE. Technological developments were impacting upon the work
of schools and teachers. Technology provided access to vast amounts of
information with computers becoming a regular feature in children's homes
and lives, and impacting increasingly upon the delivery of curriculum.
Along with these changes came a reconceptualising of the role and responsibility
of governments in the support and delivery of services, including schools.
These changes are broadly captured in the language of policy by the terms
rationalisation, user-pays, core values and functions, outsourcing, devolution
and the like. Before proceeding to a brief description of the main types
of fundraising activities undertaken by schools, it is important to explore
some of the themes which have set the tone for recent developments.
The first theme is based in a policy discourse which affirms competition
and choice as core policy values. According to this view, the achievement
of best practice, productivity, efficiency and measurable outcomes requires
the operation of a competitive market place of services in which the consumers
of those services exercise choice. In the education context, this means
that schools should be encouraged to compete with one another to attract
both students and community support. The rhetoric is that the under-performing
school will be forced to lift its game, not only benefiting its local
students and families, but contributing to the overall standard of education
in the system.
Such a policy framework is based on a reconceptualisation of education.
Instead of it being regarded primarily as a public good for which government
has a fundamental responsibility, it is viewed increasingly as a product
or service whose distribution is governed by market principles (such as
choice and price), and whose modification will be in response to the demands
of the education consumer. A deep engagement by governments in the practice
of education is replaced by a more shallow one.
A second theme is that of greatly enhanced devolution of authority for
key functions away from central bureaucracies to the agencies which deliver
government services locally. This is part of governments' desire to reduce
administration costs and to locate decision-making as close as possible
to the people who implement, or are affected by, the decision. For government
schools, this means that a range of matters which were previously administered
or managed at a systems level, now have to be dealt with at the local
level. These matters range from maintenance of grounds and buildings to
staffing and curriculum.
This has resulted in a realignment of the formal relationships between
schools and their local communities, and changes to the roles of principals
and teachers. At the same time, other major changes have impacted heavily
on the work of principals in particular. These include the new enterprise
bargaining arrangements, the Hilmer reforms to competition policy and
revised Commonwealth-state financial relations.
With the package of responsibilities devolved to the schools has come
a responsibility that was largely unexpected. This was the responsibility
of raising a significant proportion of the school's non-salary operating
costs. Fund raising is now one of the several important new tasks that
principals are expected to carry out in addition to their traditional
role as the educational leader of a school.
The role of principals now extends beyond ensuring the quality of the
curriculum, the learning, the teaching, the care and the welfare of the
children in their schools. They must now regard themselves as business
executives. Schools are large enterprises in themselves. They have large
staff, large budgets and high expectations from the community. Education
departments expect principals to be enterprising; to be looking for new
and better ways to do everything; to be committed to continuous improvement
and change for the better. [1]
A third important theme is that of partnerships between schools and their
communitiesnotably parents and the business community. Parents have always
been connected with schools, but have traditionally remained `on the outside`
involved in supporting the school through voluntary work in canteens,
fund raising events, coaching sports and so on.
Increasingly, parents have become more formally involved in schools.
With the devolution of authority to schools, school boards and P&C
associations have become very important. School boards in particular have
significant authority and responsibility, and parents now find themselves
at the centre of school planning, development and management rather than
at the periphery.
Demographic differences in the education levels, experience and socio-economic
status of a schools' parent communities will have a significant bearing
upon how effectively parents fulfil their prescribed roles in the new
arrangements. Given the expectations on parents to make a major contribution
to the planning and funding of school curricula, this has the potential
to result in significant disparities between schools.
In short, the concept of parents working in partnership with schools
has altered considerably. It no longer refers just to the kind of support
parents give in the home to their children's learning, or to their involvement
in voluntary work within the school. Parents are now expected to shoulder
much more responsibility for the resourcing of a school's program. School
budgets now require an explicit quantity of funding to be raised- as voluntary
contributions, from P&C fundraising activity or the levying of subject
fees and charges. The amounts can range from a few thousand dollars to
many tens of thousands.
Under these circumstances, the pressures put on both schools and parents
and the school-parent partnership are significant. They call into question
the extent to which governments are abrogating their responsibilities
to provide adequate resources for schools. The devolution of authority
and responsibility to schools and school councils without a commensurate
level of funds with which to exercise those responsibilities is a questionable
strategy.
Partnerships with business have become increasingly important for schools.
While this may have once been a fairly loose association, largely for
the purposes of providing work experience opportunities for senior students,
the connections between schools and local industry and commerce have intensified.
Schools are having to develop much more sophisticated career education
programs, and vocational education has become much more significant as
students remain longer at school. As a result, schools are seeking more
formal, structured and integrated relationships with businesses which
can provide not only the workplace experience but also technological and
financial resources being demanded by a diverse curriculum, by students,
and by their parents.
In an increasingly competitive market, businesses are keen to take advantage
of special relationships with other groups in the community both to secure
and enhance their own position, and to develop their role as corporate
citizens. Large firms in particular put significant efforts into long
term marketing strategies; they know the importance of niche markets and
brand allegiances. Schools are attractive in this regard.
All of these features of the contemporary education landscape mean that
schools are busy with a range of activities other than what goes on inside
a classroom. As the classroom reaches out into the worldwhether through
the local community or through cyberspacemany of the former boundaries,
certainties and orthodoxies fall away. Schools themselves are increasingly
regarded as just one more enterprise in a network of interconnecting enterprisesboth
public and private.
The implications of these new interactions between school and business
require careful thinking through. There are many benefits to be enjoyed
by students through a meaningful association with potential employers
and through the experience of the workplace. Firms, too, derive satisfaction
and status from their involvement with schools. But there are also a range
of dilemmas which arise. These dilemmas are both ethical and practical.
Negotiations between a school and a business may be a legal minefield.
Many principals, for example, may not appreciate the potential liability
attaching to verbal agreements or understandings. There are ethical issues
surrounding the motivations for business involvement in schools, and the
perceptions which are created within the community arising from that relationship.
Ties with a particular business may have repercussions upon other groups
within the community. What consideration should a principal give to the
potential inequities which may emerge when their school is favoured by
commercial interest, and nearby schools are not? These are all issues
which require careful consideration.
The following chapters explore the main issues which emerged from the
evidence presented to the Committee during the course of its inquiry.
Each can be traced back to the changes described earlier, which present
government school systems with unprecedented challenges in the funding,
structure and administration of schools. It is both the magnitude and
rapidity of change which has placed particular stresses on education systems.
At the individual school level, teachers, parents and principals have
responded with vigour, but with increasing exhaustion, to the demands
being placed on them. There is a sense of crisis in many public schools,
as they strive to meet the goals set by governments, and deliver educational
services in a manner consistent with prevailing views about market-responsiveness,
choice and autonomy. Some of the more cynical observers have pointed out
that central offices have devolved to schools all those aspects of delivering
education which have the potential to become sites of dispute amongst
school communities, while reserving to themselves the more arcane aspects
of policy development, advice to ministers and systems evaluation.
There is much that is valued by principals, in particular, in an increasingly
decentralised environment. Autonomy and flexibility are prized characteristics
within any profession. In the Committee's view, however, these cannot
be exercised properly when the professionals involved are excessively
concerned with securing an adequate level of resources to enable them
to implement their decisions and carry out their tasks. This concern lies
at the heart of the Committee's deliberations about the private and commercial
funding of government schools.
Types of fundraising
The four common forms of fundraising mechanisms used by schools and parents
and friends organisations are:
- voluntary contributions (a contribution to the general support
of a school which parents are invited to pay)
- subject levies (which parents are asked to pay to defray certain
costs associated with particular subjects)
- sponsorships (an arrangement with a business or corporation
involving the negotiated provision of funds, goods or services to schools
in exchange for advertising or publicity or other mutual benefit)
- marketing/commercial arrangements (sale, lease or hire of school
resources or intellectual property)
- giving school councils the right to borrow from banks and other
lending institutions. A further mechanism is that of giving school
councils the right to borrow from banks and other lending institutions.
This appears most advanced in Victoria where the government has established
working parties (under the title of Schools of the Third Millennium) to
look at three specific areas: innovative multimedia, autonomous schools
and quality management in the education system. The Minister for Education,
Mr Gude, recently signalled that granting schools more autonomy could
involve giving school councils the power to borrow money for expansion.
This would appear to involve changes to the legal status of school councils
and the removal of current restrictions on the ability of school councils
to enter into long-term financial arrangements.
The Committee found considerable diversity across Australia in the terms
used to describe the various forms of fundraising. For instance, most
States and Territories use the words voluntary contributions to describe
payments parents are asked to contribute on a voluntary basis for general
purposes, that is non-specified. New South Wales, however, refers to them
as general schools contributions. It is difficult to determine whether
Tasmania's 'discretionary levies' equate with voluntary contributions
in other States and Territories. Levies are described variously as secondary
school subject contributions, materials and services charges, required
levies, subject levies and fees. The Committee notes and strongly supports
the trend away from the use of the word 'fees' but considers whatever
terms are used they should indicate the nature of the charge and in particular,
whether the charge is voluntary or compulsory. It would assist families
which move interstate, policy developers and researchers if the States
and Territories used consistent terminology to describe charges and other
forms of fundraising.
The Committee RECOMMENDS that the Commonwealth
Government, in consultation with the State and Territory Governments,
develop and adopt consistent terminology to describe the various
contributions invited, and charges imposed by schools.
Recommendation 1
|
Voluntary contributions
Voluntary contributions have been a part of the school government scene
for a long time. In the past, money contributed by parents helped to
buy the `extras' around the schooloften described as providing `the
icing on the cake' - for example, sports equipment, landscaping, or
special projects of modest size. But as more schools become responsible
for managing their own global budgets, voluntary contributions are increasingly
geared to providing `the cake': [2]
...they are not simply collecting contributions for supplementary
resources and facilities, but the voluntary school fee contributions
are required to fund essential equipment for programs offered by the
schools. [3]
As voluntary contributions become identified as a revenue source within
a school's operating budget, invariably targets are set for the levels
of contributions expected. The following is an extract from a school
council's letter to parents:
The state government gives each school a limited budget, our
school receiving approx $75,000. The anticipated expenditure for 1993
is $125,800. The shortfall must be met by other means, and these are
of course by fundraising and school fees. [4]
This applies pressure to the body responsible for raising these fundsusually
the parents' association The result is often tensions between groups
of parents, as well as between parents and schools.
[You] will find that the tension between some school council
organisations and parents federations is mirrored in schools, where
the council is saying, `We cannot run these programs if we do not
have this money, so parents must pay. How can you not support your
school in this way?' And parents are saying, `No. Education is supposed
to be free. I have paid my taxes. I have already paid for this. So
why am I paying again?' ...It varies from school to school as to just
how much [tension] there is, and it also varies from how much pressure
the school council puts on parents to pay the contributions. In some
schools, all of the pressure seems to come from the administration,
in the form of those invoices and so on that go out. [5]
Most State have grappled with the dilemmas surrounding voluntary contributions.
State governments insist on the voluntary nature of the contributions,
and their various regulations either prohibit the pursuit of parents
who do not pay a voluntary contribution, or are silent on the matter.
(Some states, however, have legislated to enable schools, apart from
voluntary contributions, to impose compulsory subject levies or other
charges)
Both the total monies raised through voluntary contributions, and the
percentage of parents who pay the recommended amount, vary wildly between
schools. It was claimed by many appearing before the Committee that
the dramatic differences in the levels of funds able to be raised privately,
particularly through voluntary contributions, were creating significant
inequities in the public school system.
The Committee believes equity is the a major consideration in the private
and commercial funding of government schools. The following prediction
by the Tasmanian government with respect to its own schools is significant
in this regard:
If there was an increase in the private funding of government
schools the funding differential between students attending schools
in differing geographic and social locations would increase dramatically
[6].
Subject levies, and other charges
In the past, it was common practice for schools to charge a small fee
or levy for students to engage in craft-based or technical subjects.
This fee offset the cost of materials and generally resulted in the
student being able to take home his or her piece of work. [7]
Charges and levies have now extended to main curriculum subjects and
the official line on levies varies considerably from state to state.
In Tasmania, for example, the department has the authority to levy
`required' and `discretionary' charges.
`Required' items and services are those basic requirements essential
for student participation in a school's normal educational program,
whether the subject is optional or not.
`Discretionary' items and services include a range of incidental
expenses and activities that are additional to the student's normal
educational program. [8]
According to the Tasmanian submission, the combined average levy ranges
from $71.08 for kindergarten students to $249.75 for year 10 students.
[9]
In other states there are also explicit provisions which allow for
the charging of fees, separate from voluntary contributions. In Western
Australia, for example, schools may charge an amount not exceeding $225
to cover such things as textbooks, photocopying, essential equipment
for specific subjects, all costs associated with the delivery of subjects
required and all photocopying. Interestingly, the advice is that schools
`are required to offer a normal curriculum within the $225.00 charge'.
[10]
The South Australian government has gazetted a regulation to enable
the forcible application by schools of a materials and services charge.
[11]The maximum amounts at which schools
may set this charge are $150 for a primary student, and $200 for a secondary
student. School councils may also set a voluntary contribution amount
on top of the charge.
Other states provide for the levying of charges without any sanctions
for non-payment. In New South Wales the Director General of Education
issued a memorandum to principals which included the advice that the
levels of what are called `subject contributions' must be determined
by the school principal in consultation the school community.
Subject contributions will be on a `need to pay' basis. That
is, there will be no charge to fulfil the minimum requirements of
the curriculum. Students will need to pay only if they choose options
which go beyond the minimum requirements of a subject. Student Assistance
Scheme funds may be used as a safety net for those unable to pay.
Principals in NSW are required to ensure that no student suffers any
`discrimination or embarrassment over failure to make a voluntary contribution
or subject contribution'. [12]
The Victorian situation is similar to that which exists in NSW. However,
the Victorian education regulations as they currently stand enable obligatory
fees to be charged for the provision of educational services, although
successive governments in Victoria have chosen not to do so. [13]
In the Northern Territory, the government regards private-public cost
sharing as a reality of school life, and emphasises the notion of partnerships
with parents and community. The NT government considers that privately-raised
funds are `not an essential element in the provision of a standard level
of education in NT schools. The government has always provided adequate
resources to schools for this purpose'. [14]
The NT Education Act is silent on compulsory school fees.
The Northern Territory government's position on this matter is
that while the payment of such fees is not enforceable, parents are
strongly encouraged to support their school in this way. Basic educational
resources and services ...may not be withheld from children whose
parents do not pay school fees. [15]
The ACT also has `no legal basis for levying parents any compulsory
fees'. The ACT's implementation guidelines for parental contributions
to schools declares that:
Schools must provide each student with the basic consumable materials
to satisfy the development of knowledge and skills required by curriculum
policy.
School boards may request financial assistance from parents to
provide additional materials that would facilitate and assist students
at the school in the acquisition of knowledge and skills required
by curriculum policy. [16]
On the above account, Australian schools generally charge subject fees
or levies, with the main difference between states being the degree
of enforcibility of the payment. A rough estimate of the average amount
paid by parents in fees and levies to government schools for equipment,
materials, activities and services associated with participation in
the standard school program is of the order of $200 per student per
annum, (It is somewhat less at the primary level.) This is separate
from any voluntary contributions, and the additional private costs associated
with uniforms, school camps, special excursions and events.
Sponsorship
Sponsorshipdefined as the negotiated provision of funds, goods or services
to schools in exchange for advertising, publicity or other benefitshas
emerged only within the last decade. It is a significant consequence
of the reduced funding of schools by government and a of the manifestation
of the changing relationship between schools and the business community.
The business sector has been quick to realise that schools are a valuable
consumer groupa ready made niche market where they can trade brand loyalty
for monetary and/or other contributions to the school. As well, businesses
who enter into close relationships with schools are usually seen by
the local community as good corporate citizens. [17]
While sponsorship in schools is not an entirely new phenomenon it has,
with one or two notable exceptions in the past, tended to be on a small
scale and confined to assistance with scholarships, sport and cultural
events and prizes for achievement. [18]
However it is becoming a serious contender amongst schools' fundraising
options.
Sponsorship is clearly part of the debate about equity in schools,
and the Committee devotes a chapter to this later in the report. As
some sponsorship arrangements have already demonstrated, significant
disparities arise where lucrative sponsorship deals involve only large
business interests and prestige schools. Because of such disparities,
some states have attempted to develop sponsorship arrangements to support
government schools which are negotiated and managed at a systems, statewide
level. Such arrangements seek to avoid a number of shortcomings, for
both schools and businesses, associated with sponsorship at the individual
school level. The need to centralise the operation of sponsorship confirms
that some school functions are best managed at a systems level rather
than locally. Issues surrounding sponsorship are dealt with in
more detail in Chapter 4 of this report.
Marketing arrangements
Not only are schools seeking donations and sponsorship from outside
organisations, but they are increasingly involved in exploiting the
commercial potential of their own assets, facilities and intellectual
property. These ventures include charging fees for:
- providing night classescharging for the use of teachers and classrooms
after school hours
- serving as small business `incubators'
- becoming a service provider for information technology services
- leasing and selling of school land
- selling advertising space in school newspapers and in school grounds.
The devolution of authority to schools has increased both the desire
and the capacity of some schools to undertake commercial activity. It
is an area which state education authorities should monitor closely,
both for its potential to deflect schools from their main function,
and possible breaches of competition regulations where school enterprise
vies with private commercial interests. Other issues relating to marketing
in schools are dealt with in Chapter 4 of this report.
Footnotes
[1] Transcript of evidence, Adelaide,
31 January 1997, p 550 (Mr Ralph, South Australian Department of Education)
[2] Submission no 38, vol 3, p 9 (South
Australian Institute of Teachers (SAIT)); Submission no 16, vol 1, p
129 (Scotts Head Public School Community)
[3] Submission no 35, vol 2, p 119 (Association
of Parents and Friends of ACT Schools Inc (APFACTS))
[4] Submission no 49, vol 4, p 35 (NSW Department
of School Education)
[5] Transcript of evidence, Melbourne,
3 September 1996, p 265 (Ms Chippett, Victorian Federation of State
School Parents Clubs)
[6] Submission no 62, vol 5, p 23 (Minister
for Education and Vocational Training, Tasmania)
[7] Submission no 21, vol 1, p 154 (AEU)
[8] Submission no 62, vol 5, pp 2829 (Minister
for Education and Vocational Training, Tasmania)
[9] Submission no 62, vol 5, p 26 (Minister
for Education and Vocational Training, Tasmania)
[10] Western Australian Schools Division.
Memo 1/95 `School Charges 1996'
[11] A recent press report has stated that
the Minister will not use debt collectors to pursue unpaid charges.
[12] Dr K Boston, Director-General, NSW Department
of School Education. `Memorandum to Principals', 5 December 1995
[13] Submission no 64, vol 5, p 82 (Minister
for Education, Victoria)
[14] Submission no 56, vol 4, p 153 (Northern
Territory Department of Education)
[15] Submission no 56, vol 4, p 154 (Northern
Territory Department of Education)
[16] Policy published in supplement to Schools
Bulletin, no 574, April 1994
[17] Submission no 38, vol 3, pp 3233 (SAIT)
[18] Submission no 4, vol 1, p 19 (Association
of School Councils in Victoria Inc (ASCIV)); Submission no 38,
vol 3, p 29 (SAIT)