Tasmanian Government Funding Arrangements for Non-Government Schools

Foreword

General Education Grant: Recurrent Funding

Loan Interest Subsidy Scheme / Capital Assistance Scheme

Other Financial Assistance

Foreword

The funding arrangements for non-government schools are quite complex and often misunderstood by the wider community. Non-government schools receive funding from both the State and Australian Governments. The primary source of funding for non-government schools is from the Australian Government. The State Government has primary responsibility for State Government school funding. However, like all other Australian States and Territories, the Tasmanian Government does provide supplementary funding to non-government schools. The funding arrangements are in accordance with the funding agreement that was negotiated between the Government and the non-government school sector in 1998.

The non-government sector receives funding from the State Government for both recurrent and capital purposes. The 2004-05 State Consolidated Fund Budget provides $693.108 million for the Department of Education of which a total of $32.335 million in recurrent grants, and $1 million for capital grants is allocated for the non-government sector.

The following information provides an overview of the State Government’s funding arrangements for non-government schools.

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General Education Grant: Recurrent Funding

In broad terms, non government school students are funded at a rate of 25% of the cost of educating a government school student. This methodology is known as the Average Government School Recurrent Cost (AGSRC). In 2002‑03, the Government increased the subvention level to 25% of the AGSRC.

AGSRC Calculation.

The AGSRC is calculated by quantifying DoE’s school based expenditure and dividing by Government school enrolments (February census). This calculation produces an average recurrent cost per government student. Two AGSRC rates are calculated, one for primary students and one for secondary students, to reflect the different level of costs associated with educating primary and secondary students.

General Education Grant Calculation.

Once the AGSRC is known, the General Education Grant Pool is determined by the following formula:

AGSRC * non-government school enrolments (DEST August census) * 25% contribution = General Education Grant Pool.

Individual School Allocations.

Once the AGSRC pool of funds has been determined, it is distributed to schools based on enrolments, SES score and Sector weighting.

To recognise the higher costs of education in higher years of schooling, a sector weighting is applied across Kindergarten, Primary, Secondary and Senior Secondary.

In 2003-04, Tasmania moved to a 100% needs-based funding mechanism for the first time. The needs-based mechanism reflects the Commonwealth determined Socio Economic Status (SES) scores, as released by DEST, and ensures that the allocation of funding to individual non‑government schools is based on considerations of equity and fairness by increasing funding to those non-government schools which support lower socio-economic status communities.

DEST has then linked the SES score to an AGSRC percentage of funding which will be provided to a given school. According to DEST’s table of SES scores the maximum SES score of 130 or higher is funded at 13.7% of the AGSRC and a minimum SES score of 85 or less is funded at 70% of the AGSRC.

Distance Education

Distance education enrolments are also included in the AGSRC funding methodology. Non-government schools offering distance education are classified into two categories:

Category 1 Schools - schools which develop, monitor and evaluate their own curriculum; and
Category 2 Schools - schools which deliver curriculum content that has been significantly sourced from outside the school.

The funding mechanism takes account of the costs involved in delivering education via distance education mode and also reflects the cost differential between Category 1 and Category 2 schools. Funding for distance education enrolments is provided at:

90 per cent of the funding provided for a regular enrolment for Category 1 schools; and
75 per cent of the funding provided for a regular enrolment for Category 2 schools.

Distance education funding is distributed as part of the general education grant payments.

The attachment provides details of the recurrent grant payments made to non-government schools for the 2004-05 financial year.

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Loan Interest Subsidy Scheme / Capital Assistance Scheme

The Loan Interest Subsidy Scheme / Capital Assistance Scheme is a $1 million annual contribution to non-government schools. The Loan Interest Subsidy Scheme is a payment made to non-government schools which have taken out loans for educational purposes to provide some offset of interest costs incurred. In accordance with an agreement reached with non-government school representatives in 1998, the Loan Interest Subsidy Scheme is being phased out and replaced by the Capital Assistance Scheme, which is administered by the Catholic Education Office and the Association of Independent Schools.

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Other Financial Assistance

The Department of Education also administers the following schemes, for which some students at non-government schools may be eligible:

Student Assistance Scheme

An annual payment as a contribution to fees to non-government schools, in respect of that school's approved students from low income families.

Spectacles Assistance Scheme

A contribution towards the cost of spectacles for students from low income families.

Student Accommodation Allowance

A contribution towards the costs incurred by Senior Secondary students who are required to move from home in order to continue their studies.

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