CHOICE AND EQUITY:

The funding approach to be implemented from 2001 assesses need according to a measure of the SES of a school community rather than a school’s own resource levels.

Through a simple process, involving:

1. the collection of students’ home addresses (names of students are not requested),
2. linking these addresses with their relevant Australian Bureau of Statistics (ABS) Census Collection District (CDs) comprising about 250 homes and
3. applying an SES index,

an SES score is calculated for each school. The process of linking home addresses with CDs is known as geocoding.

The SES index to be used relates to family resources and will reflect the capacity of a school community to support its school. The index measures household income, occupation and education, with lower SES scores denoting lower capacity to support a school.

Non-government schools will be funded according to their SES scores. All students, whether in government or non-government schools, are entitled to at least a base level of public investment in their education. Schools with SES scores of 130 or above will therefore only receive a base entitlement grant for each of their students.

The neediest schools will receive significantly more Commonwealth assistance under the SES approach. All schools with an SES score of 85 or below will receive maximum Commonwealth funding for each of their students.

The new funding arrangements will maintain the existing link between non-government school funding and the costs of government schooling as measured by Average Government School Recurrent Costs (AGSRC). AGSRC is a measure of the national average recurrent cost of educating a child in a government school, agreed annually by all Education Ministers. In developing the new funding approach, the most recent AGSRC figures of $4,355 (primary) and $6,050 (secondary) were used.

The base entitlement will be set at the current ERI minimum secondary school funding rate, which is 13.7% of the AGSRC. The maximum payment will be set at 70% of the AGSRC (14% higher than the current ERI maximum funding rate).

From 2001, schools which will receive increased funding under an SES model will have those increases phased in over the quadrennium, at 25 per cent of the increase each year.

It would not be fair for schools that have established and operated under an agreed set of funding arrangements to be disadvantaged when those arrangements are changed. Therefore, in assessing schools’ entitlements for the next quadrennium, the Commonwealth will ensure that no schools are financially disadvantaged by the change. Schools which would receive less funding under an SES model will have their year 2000 per student funding maintained, with the year 2000 dollar rates adjusted annually in line with the most recently agreed AGSRC figures. No school will therefore have to raise fees as a result of the change to an SES model.

The Government will also continue to honour its election commitment to fund Catholic systemic schools at their current level in real terms.

Early in the year 2000, schools will be asked to provide students’ home addresses (not names) so that SES scores can be calculated. Before this, further information will be available to schools about the processes involved, including how addresses should be presented, and when schools will be advised of their funding entitlements.