THE EROSION OF GOVERNMENT COMMITMENT TO THE PROVISION OF FREE SECULAR EDUCATION

Not a level playing field
CONTENTS

Chapter 2

THE EROSION OF GOVERNMENT COMMITMENT TO THE PROVISION OF FREE SECULAR EDUCATION

The issue that clearly emerged to lie at the heart of this inquiry is the erosion of government commitment to the provision of free secular education. It is noteworthy that although the terms of reference did not refer to levels of government funding, nearly all submissions made specific mention of the inadequacy of government funding for schools. In this respect, the Committee's experience mirrored that of Howard and Coulter who noted that over 50 per cent of the principals they surveyed made unsolicited comment about the inadequacy of government funding for schools. [2]

The Committee was struck by the significant disparity between governments' claims regarding their commitment to meet the resource needs of a standard school education, and the views of parents, principals and teachers. Most governments insisted that they allocated sufficient funds from the public purse to provide for a basic school curriculumone which would meet the requirements of the National Goals of Schooling.

Parents, principals and teachers from both government and non-government sectors were vociferous in their rejection of such claims. Parents described the growing acceptance of the reliance on private and commercial funding for some of the essentials of schooling as an `invidious trend' leading to the 'government abrogating its responsibility to fully fund a high quality education for all children'. [5] Principals impressed upon the Committee their view that `education in government schools is not free' and `that government schools need funds additional to those provided by government'. [6] The message is clear that current levels of government funds are not sufficient to meet what principals judge that their schools require.

Teachers urged the Committee to place the issue of the private and commercial funding of government schools in its rightful context, that is `the cost of public education and the responsibility of the government to fund it'. [7] The Australian Parents Council, which represents parents of children attending non-government schools, declared that `neither the government nor the non-government schooling sector receives adequate public funding'. [8]

The retreat of governments from their responsibilities to provide an adequate school education is apparent in a number of ways. The evidence indicates:

Cumulatively, the evidence before the Committee is compelling. The level of government funding for schools is inadequate. An outline of the evidence follows.

Evidence of a rEducation in governments' commitment to education

Figures provided in the Report of the National Commission of Audit show a decline in the level of governments' spending on school education.

Latest available figures indicate that the expenditure on education as a percentage of GDP has fallen again from 93-94 to 94-95, continuing a pattern of steady relative decline during the 1990s.

A further worrying factor here is that the recurrent costs of schools have been rising much faster than the general level of prices in the economy. An examination of the schools cost index reveals increases in school costs which are significantly higher than that represented by the standard indices which are used to take account of general cost increases - such as the gross non-farm product price deflator. Over this period, government funds to schools were adjusted to reflect rises in the level of prices in the economy generally. However, recurrent school costs appear to have increased much faster than the prices within the general economy, with the result that real school funding, deflated by the schools recurrent cost index, actually showed a decline over the period in question. In short, any increase in school funding levels by governments predicated upon general cost increases in the economy generally will still be significantly short of what would be sufficient to meet the actual increases in school recurrent costs. It is a case, for government schools, of one step forward, two steps back.

An examination of Commonwealth and State Recurrent Education Outlays per student from 1988-1995 based on constant 1989-90 prices, and taking into account the Schools Recurrent Cost Index, reveals a rEducation of 2.6% with an average annual rEducation of 0.4%.

 

Notwithstanding the above, some governments insist that they have increased the level of funds flowing to schools.

It is extremely difficult to ascertain where the truth lies in matters of State and Territory Government expenditure on services, especially when the involvement of the Commonwealth is also taken into account. What is most critical to a discussion of the level of government funding is the argument that the level of funding has not kept up with the massive increase in the costs of schooling resulting from developments in recent years.

Governments have, on the one hand, abandoned the use of educational resource standards as a means of determining funding for schools. On the other, they have made no attempt to estimate the additional funds needed in order to achieve the National Goals of Schooling, or the implementation of technology or the demands of an expanding curriculum. It is therefore inevitable that that a significant gap has developed between the level of funds schools actually need and those they receive from governments.

Private and commercial funding as a proportion of the total expenditure on school education

Figures provided by governments and academics indicate that the proportion of total system expenditure on government schools that is represented by privately raised funds is between approximately 57 per cent.

A study conducted by Dr Tony Townsend in Victoria, found that on average 4.75 per cent of the total school expenditure was raised locally. [13] Given the consistency of findings from various sources, the Committee accepts the figure 57 per cent as a reasonable estimate of the proportion of total expenditure on government schools derived from private sources.

Private and commercial funding as a proportion of local school operating costs.

There is also considerable consistency between figures provided from a range of sources relating to the proportion of individual school operating costs represented by locally raised funds.

Townsend's finding that '30.04 per cent of the operating budget (non staff costs) were raised locally' verifies this figure. [15]

Figures referred to in the South Australian government's submission indicate a slightly lower proportion.

The Victorian Auditor-General's Report on Ministerial Portfolios, May 1997, found that `locally raised funds generated a net amount of $97 million in the 1996 school year (representing 16.9 per cent of school operating revenue which does not include teacher salaries funding)'. [17] However, a number of other submissions suggest the proportion of school operating costs made up of privately raised funds is considerably higher.

Private and commercial fundingthe icing or the cake?

Nowhere is the evidence that the level of government funding is inadequate to meet the real costs of a basic education more conclusive than in an examination of the uses made of locally raised funds in schools. Parents, principals and teachers are strongly of the view that schools now rely on locally raised funds to deliver the essentials of education, not the extras. The evidence speaks for itself:

From Parents Associations and School Councils

From School Principals

From Teachers

The South Australian Institute of Teachers (SAIT) asserts that:

In addition to the evidence received by parents, teachers and principals, the Committee also notes one of the key findings of the Victorian Auditor-General's Report on Ministerial Portfolios which found that given `the level of school revenues derived from local communities, (a net amount of $97 million in the 1996 school year) it is evident that schools are, to some extent, reliant on this form of funding to supplement government funding for the provision of educational services'. [35]

In the light of this body of evidence, claims by various governments that government funds provide adequately for the delivery of a basic education appear very lame.

Given the consistency of the view that government funding is inadequate, the Committee noted with interest the comments from the Australian Secondary Principals Association `that it is completely unrealistic to expect governments to come up with the level of funding which would be required to provide every item seen as desirableor even to replace funds not received [through parent contributions] as a result of further negative publicity'. [36] The latter part of this comment provides some explanation for the reluctance of many principals to publicise the voluntary nature of school contributions and fees. Such publicity frequently results in a marked rEducation in their payment. To some extent schools rely on the sense of compulsion and the ambiguities that surround the payment of voluntary contributions to secure parents' compliance with schools' requests. This issue will be discussed in detail in the next chapter.

The Committee is mindful of the complexities of the situation. In many ways principals are caught between a rock and a hard place. The responsibility of running schools on a day to day basis rests squarely on their shoulders, and their wish to maximise the resources available to them is entirely understandable. Increased competition from private schools and from other public schools can translate easily into shifts in a school's population with subsequent falls in funding. This sets up a cycle of decline. It is natural that principals should seek to preserve the flexibility that devolution of authority has offered them, particularly in terms of procuring the funds needed by their schools.

While the Committee assures principals that it understands their concerns and in no way seeks to remove the capacity of schools to build productive relationships with parents and businesses, it is firmly of the view that the these relationships should not be predicated on the need to raise funds to meet the core costs of education.

It is inevitable that the burgeoning demands on schools in recent decades have increased the real costs of education. The manifest failure by governments to fund these increases, and their efforts to pass on the responsibility for meeting the shortfall in funding to parents and schools under the guise of strengthening parent/school partnerships, devolving authority to schools, encouraging competition and increasing choice, fundamentally threaten the principle of free secular education that has traditionally characterised public education in Australia.

We seem not to have learned from the lessons of history. In 1984 the Commonwealth Schools Commission was asked to provide advice on `the determination of adequate general resource standards in government schools and the appropriate contributions of Commonwealth and State Governments towards their attainment'. Its findings and predictions bear an uncanny resemblance to the situation described to the Committee in this inquiry:

The Schools Commission developed independently a set of resource standards that represented its `judgement of educationally desirable recurrent resources'. [38] In recognition of the necessity for flexibility, the funding standard allowed for a range of resource allocation configurations. The standard was to be considered in the context of objectives determined in the Commission's report Commonwealth Standards for Australian Schools, which included recognition that quality in schooling requires an adequate resource base, an equitable means of allocation and an efficient use of these resources. The report also acknowledged that schools should be able to make some decisions about the use of resources within an overall resource entitlement. [39]

The proposed resource standard had the potential to serve a number of purposes.

This so-called `community standard' was used as the basis for determining Commonwealth general recurrent grants funding levels from 19851992. Since 1993, these recurrent grants have been determined on the basis of movements in the average recurrent cost of government schools (ARCOS). [41] The ARCOS simply averages, over the government school population, the expenditure by government on salaries and general operating expenditure. The ARCOS does not take into account funds raised privately by schools, nor does it include expenditure from Commonwealth specific purpose payments. On this basis, it clearly underestimates the real cost of educating a student in a government school.

In the Committee's view, the major flaw of the ARCOS approach is that it is not linked in any way to targets, outcomes or standards. It simply represents a benchmark of expenditure based on historical circumstance. This is entirely inappropriate on a number of grounds. It is inconsistent with the thrust towards using an outcomes approach to inform funding decisions. It also ignores significant growth in retention rates, dramatic changes in curriculum, and major advances in technology, all of which impact profoundly on the resource needs of schools.

The Committee considers that it is the responsibility of governments to fund schools to a standard commensurate with the expectations of the community and the demands of the expanding curriculum. Parents and schools should be enabled to `devote their efforts to meeting the educational needs of students rather than raising funds to cover costs which should be met from the public purse'. [42]

Governments need to establish the real cost of schooling and fund schools accordingly. In 1995 the Schools Council suggested that one means of addressing `the issue of the declining resources base would be to establish a collaborative Schools Funding Committee to devise one funding formula for the allocation of Commonwealth and State resources to all Australian schools. ...[The] Committee ... established under an appropriate national body ... would be asked to determine overall resource levels, service standards, allocative mechanisms, and the relative funding shares of the various partners...' [43] The Senate Committee endorses this proposal. It suggests that the education resource standards be linked to the eight key learning areas identified in the national goals of schooling. A basket of services approach for determining the level of resources needed to achieve these goals would provide a basis for funding.

The Committee notes with interest the work done by the Victorian government's education committee under Professor Brian Caldwell. Its June 1995 Interim Report on The School Global Budget in Victoria was subtitled `Matching resources to student learning needs'. The Committee understands that a final report, which deals at length with the issue of how schools should be resourced, has been with the Victorian Minister for Education for some months. The Committee urges the Victorian Minister to publish the findings of the latest Caldwell report.

In the Interim Report of June 1995, Caldwell provided a final chapter dealing with `Transitional arrangements and further work' which sought to lay the foundations for a comprehensive approach to establishing a link between resources allocated to schools and the stages of learning. This approach sought to address the question `What should be the stages of learning that will form the basis for the allocation of resources in core funding for schools?' [44] The general thrust of the Caldwell proposals was to undertake consultation with a view to the phased implementation of per capita and per school funding levels based on the identification of three stages of schooling, namely, years K4, years 58 and years 912. This exercise would also involve the assembling of some sense of the costs associated with different stages of schooling, which could then guide resource allocation.

The Senate Committee regards it as crucial that a sensible approach to resource allocation in schools be developed. The establishment of the eight key learning areas and the associated curriculum frameworks provides a solid background against which to develop measures of the costs associated with delivering that curriculum. Governments would then know what the costs are of providing a school education sufficient to cover the eight key learning areas and to meet the National Goals for Schooling. This data could then be used to develop methods of allocating resources to schools.

It is likely that the yet-to-be-released final report of the Caldwell Committee could provide some valuable guidance on these matters. Given the ongoing controversy about the involvement of the Commonwealth, State and Territory Governments in the funding of schools, and about the policy changes and levels of funding which the Commonwealth has introduced, it is timely to pursue a thorough investigation of school resourcing mechanisms. This requires a thorough examination of the actual costs of delivering a standard curriculum in our schools.

The Committee RECOMMENDS that:
  1. governments fund public schools at a level sufficient to deliver the appropriate standard of education within the Eight Key Learning Areas, and commensurate with the National Goals of Schooling;
  2. the Commonwealth, State and Territory Governments jointly establish a Schools Education Costs Committee to undertake consultation and research with the aim of ascertaining the cost of delivering, at the various stages of schooling and in each of the eight key learning areas, an education which will meet the basic requirements of those Key Learning Areas and the National Goals for Schools; and
  3. on the basis of such data and information determine overall resource levels, allocative mechanisms and the relative funding shares of the various governments.

Recommendation 2

 

Footnotes

[1] Submission no 1, vol 1, p 3 (The Sheffield School)

[2] Howard Michael and Coulter Jane. Scrounging to Meet the Shortfall: Fees, fundraising and sponsorship in government schools. Public Sector Research Centre and the AEU, Sydney, 1995, p i

[3] Submission no 56, vol 4, p 153 (Northern Territory Government)

[4] Submission no 53, vol 4, p 106 (Queensland Government)

[5] Submission no 50, vol 4, p 93 (NSW Federation of School Community Organisations Council (FOSCO))

[6] Submission no 51, vol 4, p 95 (NSW Primary Principals' Association)

[7] Submission no 38, vol 3, p 6 (South Australian Institute of Teachers (SAIT))

[8] Submission no 44, vol 3, p 124 (Australian Parents' Council (APC))

[9] National Commission of Audit. Report to the Commonwealth Government. June 1996, AGPS, Canberra

[10] Transcript of evidence, Adelaide, 31 January 1997, pp 546547 (Mr Ralph, South Australian Government)

[11] Submission no 39, vol 3, p 97 (Association of Independent Schools of Victoria)

[12] Submission no 67, vol 5, p120 (South Australian Government)

[13] Submission no 27, vol 2, p 5 (Dr Tony Townsend)

[14] Submission no 38, vol 3, p 9 (SAIT)

[15] Submission no 27, vol 2, pp 5, 6, 7 (Dr Townsend)

[16] Submission no 67, vol 5, p123 (South Australian Government)

[17] Auditor-General of Victoria, Report on Ministerial Portfolios May 1997, p 23

[18] Submission no 29, vol 2, p 41 (Bellarine Secondary College Council)

[19] Submission no 48, vol 4, p 7 (ACT Council of P&C Associations)

[20] Submission no 30, vol 2, p 52 (Australian Secondary Principals' Association (ASPA))

[21] Submission no 52, vol 4, p 101 (North Sydney Boys High School Council)

[22] Submission no 50, vol 4, pp 9293 (NSW FOSCO Council)

[23] Submission no 28, vol 2, p 28 (VICCSO)

[24] Submission no 20, vol 1, p 144 (Samford State School)

[25] Submission no 8, vol 1, p 65 (Elwood School Council)

[26] Submission no 16, vol 1, p 129 (Scotts Head Public School Community)

[27] Submission no 24, vol 1, p 192 (Camberwell Primary School Council)

[28] Submission no 29, vol 2, p 43 (Bellarine Secondary College Council)

[29] Submission No 55, vol 4, p 137 (Huonville Primary School Parents & Friends)

[30] Submission no 51, vol 4, p 97 (NSW Primary Principals' Association)

[31] Submission no 36, vol 2, p 158 (Queensland Secondary Principals Association)

[32] Submission no 59, vol 5, pp 56 (State School Teachers' Union of WA Inc)

[33] Submission no 38, vol 3, p 7 (SAIT)

[34] Submission no 38, vol 3, p 55 (SAIT)

[35] Auditor-General of Victoria, Report on Ministerial Portfolios May 1997, p 19

[36] Submission no 30, vol 2, p 52 (ASPA)

[37] Commonwealth Schools Commission. Funding Policies for Australian Schools, Canberra, 1984, p 19

[38] Commonwealth Schools Commission. Funding Policies for Australian Schools, Canberra, 1984, p 5

[39] Commonwealth Schools Commission. Commonwealth Standards for Australian Schools: recurrent resources goals, Canberra, April 1984, pp 15

[40] Commonwealth Schools Commission. Funding Policies for Australian Schools, Canberra, 1984, p 7

[41] Schools Council. Improving Commonwealth funding arrangements for government primary schools: Discussion paper, NBEET, December 1994, p 10

[42] Submission no 60, vol 5, p 8 (Ms Bullivant)

[43] Schools Council. Resources and Accountability: Commonwealth funding scenarios for government primary schools 1996-2000, NBEET, Canberra, 1995, p 10

[44] Caldwell, B, et al. The School Global Budget in Victoria, Interim Report, June 1995, Victorian Directorate of School Education, pp 4649