Changes in funding models set to be imposed on all regional independent schools by 2022, including Hunter Valley Grammar School and Newcastle Grammar, could see fees increase and parents of low income forced to pull their children out of school.
The changes are part of the Government's 2017 Quality School Package, and will see government funding of regional independent schools calculated based on the schools ‘capacity to contribute’ or CTC.
This will be based on the median income of the schools parents and guardians, with the changes to be rolled out this year.
Currently base government funding is determined by the schools Socio-Economic Status (SES) score, which utilizes area-based data from the ABS Census of Population and Housing.
The SES methodology was reviewed in 2018 by the National School Resourcing Board, with the board recommending that the area-based methodology be replaced with a direct measure of CTC, based on parental income tax data.
Principle of Hunter Valley Grammar School, Paul Teys, is concerned the changes will see fees increase and force low income earning parents to enroll their children elsewhere.
"Now the problem with schools like ours in regional communities is that the income of our parents vary's so greatly across our demographic," he said.
This will be based on the median income of the schools parents and guardians, with the changes to be rolled out this year.
Currently base government funding is determined by the schools Socio-Economic Status (SES) score, which utilizes area-based data from the ABS Census of Population and Housing.
The SES methodology was reviewed in 2018 by the National School Resourcing Board, with the board recommending that the area-based methodology be replaced with a direct measure of CTC, based on parental income tax data.
Principle of Hunter Valley Grammar School, Paul Teys, is concerned the changes will see fees increase and force low income earning parents to enroll their children elsewhere.
"Now the problem with schools like ours in regional communities is that the income of our parents vary's so greatly across our demographic," he said.
"You know we have families who struggle to pay fees, they're in low socioeconomic areas and then we have parents who can afford our fees, but its such a broad range of income that it makes it extremely hard for us to understand how on earth this new funding formula is fair."
Whilst it vary's from school to school, according to Independent Schools Council of Australia, on average independent schools receive 57% of their funding from private sources, mainly parents, with the remaining 43% provided by Government sources.
Mr Teys in concerned the system will create a cycle which continues to reduce government funding.
"What happens with this new funding formula is that our fees increase, the low income families who struggle to pay our fees will have to leave the school," he said.
"And the hideous thing is when they leave the school then you've got a higher income demographic and so your median SES actually rises again, and you'll have less government funding."
"So we have our new number, or index, but we have no idea how that's been calculated or determined," he said.
"We've had no consultation, we've had no means of collaborating with Government, we can't even talk to our our associations who represent us, there's been no transparency whatsoever."
The Coalition for Regional Independent Schools, which involves fifty schools from States and Territories across Australia, including Hunter Valley Grammar School and Newcastle Grammar, says the schools could be stripped of more than a million dollars a year under this new model.
They have raised concerns it could force them to cut programs, increase fees and, in some instances, potentially close their doors.
“Independent schools are often the heart and soul of local regional communities and the adoption of this flawed methodology will hurt many parents, students and families," The Chair of the Coalition, Stephen Higgs said.
“We support a means-based funding scheme, but the proposed
application of this new model fails the fundamental tests of fairness and
transparency on which it was supposed to be based,” he said.
“Regional communities, many already reeling from the effects of
drought, bush fires, and even floods, must be given immediate guarantees that
their school funding will not be slashed."
“We are calling on the Government to ensure funding fairness for
all independent schools under any new model,” he said.
Image Credit: The Land
