In the Common Good: The Need for a New Approach to Funding Australia's Schools

Abstract

This article considers evidence which suggests that Australia's current approach to the funding of non-government schools does not serve the common good. Educational provision is now segmented and a majority of private schools have resources that are either moderately or highly superior to those available in public schools. The current funding system has failed to coordinate the activities of public and private providers, leading to duplication of provision, reductions in economies of scale, and increases in per-student costs. Students whose backgrounds and disabilities make them relatively costly to teach are heavily concentrated in the public sector. Private sector recurrent subsidies are tied to public sector per-student costs, forcing Australian taxpayers into an upward spiral of increasing outlays. The article concludes by outlining some proposals for change that would lead to a new approach to funding Australia's schools.