Garnaut Fitzgerald Review of Commonwealth-State Funding

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APPENDIX B: National Education and Training Program TABLE B.1: Estimated SPPs to the States for Education, 2002–03 SPPs $m Current Government schools 1 465 442 Non-government schools (a) 3 696 143 Vocational Education and Training Funding Act 1 032 527 Targeted programs aimed at both government and non-government schools 324 105 Targeted programs non-government schools (a) 170 638 Indigenous education strategic initiatives program – government (b) 114 247 Indigenous education strategic initiatives program – non-government (a) 52 663 Current total 6 855 765 Capital Government schools 230 847 Non-government schools (a) 90 755 Capital total 321 602 Education total 7 177 367 Source: Commonwealth Government 2002a (a) SPPs ‘through’ the States (b) To be included in Indigenous Community Development SPP Government schools Government school funding is specified in the Quadrennial Agreement with the Commonwealth under the States Grant (Primary and Secondary Education Assistance) Act 2000 for 2001–2004. General recurrent grants are provided as block grants calculated on a per student basis and are subject to adjustments based on movements in Average Government School Recurrent Costs. Capital grants are provided as block grants and funds for each State are allocated on the basis of total government school enrolments. Commonwealth capital funding is supplemented annually using the Building Price Index. Targeted programs aimed at both government and non-government schools Targeted programs funding is appropriated in the Quadrennial Agreement with the Commonwealth under the States Grant (Primary and Secondary Education Assistance) Act 2000 for 2001–2004. General grants are provided for programs on the basis of a composite mechanism of several factors, including ABS data on the number of students with English as a second language, the Index of Relative Socioeconomic Disadvantage, a fixed percentage of the former Special Education – School Support Program, and strategic assistance based on the number of eligible students with disabilities. FINAL REPORT [210]
APPENDIX B: National Education and Training Program Vocational education and training Vocational education and training funding is determined by the Australian National Training Authority Agreement Ministerial Council (including State and Commonwealth Vocational Education and Training Ministers), and guided by the Australian National Training Authority Agreement between the Commonwealth and the States for 2001–2003. Recurrent funding allocations are based on a population share (a mix of historical and current) and capital funding allocations are based on an historical breakdown. Distribution Table B.2 shows the current distribution of education funding to each State compared with equal per capita benchmark. The equal per capita results are not significantly different from those of the current system, despite the detailed analysis and methodologies currently applied. TABLE B.2: Distribution of Education SPPs, 2002–03 NSW VIC QLD WA SA TAS ACT NT TOTAL 2002–03 distribution $m 1 034.8 736.0 577.1 280.6 257.4 81.3 44.4 41.4 3 052.9 % 33.9 24.1 18.9 9.2 8.4 2.7 1.5 1.4 100.0 State population shares % 33.6 24.9 18.9 9.9 7.7 2.4 1.6 1.0 100.0 Source: Commonwealth Government 2002a Problems with the current system There is no simple and transparent rationale for the current distribution of education funding to the States. The basis for each distribution appears to be largely historical. The historical basis is entrenched further each time an agreement is renewed, without due consideration to emerging service needs. Other issues arise out of Commonwealth involvement in an area for which it has no constitutional responsibility. The States are responsible for delivering education services to all children of school age. Some of the States’ core responsibilities include administration and funding of Technical and Further Education institutes, administration and delivery of vocational education and training, and education in government schools. The Commonwealth’s role is to provide funding to the States for agreed priorities and strategies, provide funding to the States through the Australian National Training Authority for the delivery of vocational education and training programs, and provide funding for higher education and assistance for students. This lack of flexibility removes the States’ freedom to pursue education policies and programs to suit their own particular needs. The CGC’s assessment of education adds an even higher level of complexity to the existing SPP arrangements. Irrespective of the appropriateness of the current arrangements, they are effectively made obsolete by the CGC’s overriding methodology. FINAL REPORT [211]
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Review of Commonwealth-State Fundin
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Review of Commonwealth-State Fundin
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TABLE OF CONTENTS CHAPTER 9: Equity
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THE REVIEW COMMITTEE FINAL REPORT [
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EXECUTIVE SUMMARY Overall assessmen
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EXECUTIVE SUMMARY Each State would
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CHAPTER 1: Overview and Summary of
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CHAPTER 2: How the System Grew: A H
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CHAPTER 3: The Current System TABLE
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CHAPTER 3: The Current System 3.3 G
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CHAPTER 3: The Current System Natio
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CHAPTER 3: The Current System FINAL
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CHAPTER 4: Allocation of General Pu
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Chapter 5: Specific Purpose Payment
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CHAPTER 6: Comparative Fiscal Posit
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CHAPTER 7: Other Federations 7.2 Ve
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CHAPTER 7: Other Federations Sales
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CHAPTER 7: Other Federations The Un
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CHAPTER 7: Other Federations Popula
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CHAPTER 7: Other Federations In add
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CHAPTER 7: Other Federations Compar
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CHAPTER 7: Other Federations FINAL
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CHAPTER 8: Federal Policy Effects o
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CHAPTER 9: Equity Chapter 1 notes t
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CHAPTER 9: Equity Both SPPs and gen
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CHAPTER 9: Equity Table 9.3 shows t
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CHAPTER 9: Equity 9.3 Horizontal di
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CHAPTER 9: Equity Many ways to rais
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CHAPTER 10: Efficiency and Economic
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CHAPTER 11: Simplicity, Transparenc
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CHAPTER 11: Simplicity, Transparenc
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Page 240 and 241: GLOSSARY Efficiency: allocative eff
Page 242 and 243: GLOSSARY merit goods (health, educa
Page 244 and 245: FINAL REPORT [234] GLOSSARY
Page 246 and 247: BIBLIOGRAPHY Buchanan, JM 2001, Fis
Page 248 and 249: BIBLIOGRAPHY Government of Victoria
Page 250 and 251: BIBLIOGRAPHY Watts, RL 1999, Compar
Page 252 and 253: INDEX E economic activity / growth
Page 254 and 255: INDEX O other Federations Canada ·
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Garnaut Fitzgerald Review of Commonwealth-State Funding

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