National Report on Schooling in Australia 2011
Funding Australia’s schools
8.5 Capital expenditure
State and Territory capital expenditure for government schools
As shown in Table 8.9, capital expenditure by State and Territory governments in government schools was $6.8 billion in 2011 (the 2010–11 financial year).
This table combines funding provided from the Australian Government and State and Territory sourced funding. It should be noted that it is no longer possible to separate this funding following the Australian Government’s decision in 2009 to amalgamate specific purpose capital funding with a broadbanded recurrent specific purpose payment under the Intergovernmental Agreement (IGA) on Federal Financial Relations.
As Table 8.9 illustrates, there has been an increasing level of capital expenditure over the past five years. This is an increase of over 250 per cent over the five-year period 2006–07 to 2010–11.
The increase in capital expenditure reflects both:
-
the Australian Government’s significant injection of capital funds in recent years under the Investing in Our Schools Program, Building the Education Revolution (BER), the Trade Training Centres (TTC) and the Digital Education Revolution National Partnerships. The BER is part of the government’s economic stimulus package. In some jurisdictions a portion of these program funds may be expended as recurrent funds in meeting the programs’ objectives and purposes.
Subject to new capital initiatives being introduced, it can be expected that there would be a reduction in overall capital funding in the next few years as funding under the economic stimulus package is exhausted. The National Partnership Agreement on the Nation Building and Jobs Plan expires on 31 December 2012.
-
specific initiatives by various State and Territory governments to invest in school infrastructure.
Capital funding and expenditure will, by their nature, reflect growth cycles in enrolments generally, and more specifically, in growth regions and corridors in a State or Territory, as well as having regard to the age and condition of existing capital stock. By contrast, changes in recurrent expenditure will be relatively smooth.
Table 8.9 Capital expenditure by State and Territory governments in government schools,
Australia, 2006–07 to 2010–11 financial years (accrual basis) ($'000)
|
Financial year
|
|
NSW
|
Vic.
|
Qld
|
SA
|
WA
|
Tas.
|
NT
|
ACT
|
Australia
|
| 2006–07 |
|
462,846 |
552,567 |
484,447 |
46,461 |
321,698 |
13,487 |
28,579 |
40,392 |
1,950,477 |
|
2007–08
|
|
486,577
|
476,513
|
472,732
|
75,421
|
314,295
|
23,118
|
48,675
|
71,133
|
1,968,464
|
|
2008–09
|
|
607,518
|
521,230
|
668,141
|
50,616
|
269,326
|
38,896
|
44,223
|
92,504
|
2,292,453
|
| 2009–10 |
|
2,567,386 |
1,269,900 |
1,977,011 |
488,650 |
690,849 |
223,232 |
154,695 |
199,437 |
7,571,161 |
| 2010–11 |
|
1,799,683 |
1,835,015 |
1,437,641 |
440,642 |
820,969 |
200,907 |
106,052 |
198,547 |
6,839,455 |
Notes:
Figures include Australian Government capital grants contributions.
Components may not add to totals due to rounding.
Sources: MCEECDYA, National Schools Statistics Collection, 2011; National Report on Schooling in Australia, 2007–10
See also Part 9: Additional Statistics Table 49
Australian Government capital funding
Table 8.10 provides a summary of Australian Government capital funding in 2011.
The Specific Purpose Program element was rolled into the National Schools Specific Purpose Payment (recurrent funds) for government schools in 2009. These funds can be used flexibly by jurisdictions for either capital or recurrent purposes. Capital funding continues as a separate program for the non-government sector.
As was the case in 2009 and 2010, a number of projects funded by the Australian Government were completed physically and financially in non-government schools in 2011. The most common types of work in both primary and secondary schools were the construction or refurbishment of classrooms and specialist facilities such as art, performing arts, technology, library, science and music/drama areas. Other capital projects that were funded by the Australian Government included boarding facilities, student amenities and staff administration areas. Capital funding also contributed to the provision of new schools in the non-government sector.
There are also National Partnership funded programs and the Nation Building and Jobs Plan, which incorporate substantial programs of a capital nature. The Building the Education Revolution, Trade Training Centres and Digital Education Revolution Australian Government capital-funded programs are appropriated under the Federal Financial Relations Act 2009 and expended by States and Territories through both recurrent and capital accounts based on the nature of the expenditure and the capitalisation thresholds that apply.
Table 8.10 Australian Government specific purpose payments for schools by government/non-government, capital,
Australia, 2010–11 financial year (accrual basis) ($'000)
|
|
|
Australia
|
|
Government schools
|
|
|
Capital expenditure
|
|
|
Capital grants allocation(a)
|
0
|
|
Total capital – government schools
|
0
|
|
National Partnership payments
|
|
|
• Digital Education Revolution
|
62,946
|
|
• Trade Training Centres in Schools(b)
|
190,606
|
|
Closing the Gap – Northern Territory
|
|
|
Teacher Housing(c)
|
|
3,680
|
|
Additional Teachers
|
|
7,800
|
|
Total National Partnerships
|
265,032
|
|
Total National Partnerships & capital – government schools
|
265,032
|
|
Nation Building & Jobs Plan
|
|
|
• Building the Education Revolution
|
3,714,239
|
|
Total Nation Building & Jobs Plan
|
3,714,239
|
|
Total Nation Building & Jobs Plan, National Partnerships, Closing the Gap & capital – government schools
|
3,979,271
|
|
Non-government schools
|
|
|
Capital expenditure
|
|
|
Capital grants allocation(a)
|
0
|
|
Total capital – non-government schools
|
0
|
|
National Partnership payments
|
|
|
Digital Education Revolution
|
37,000
|
|
Trade Training Centres in Schools(b)
|
68,368
|
|
Closing the Gap – Northern Territory
|
|
|
Teacher Housing
|
|
516
|
|
Total National Partnerships
|
105,884
|
|
Total National Partnerships & capital – non-government schools
|
105,884
|
|
Nation Building & Jobs Plan
|
|
|
• Building the Education Revolution
|
1,645,127
|
|
Total Nation Building & Jobs Plan
|
1,645,127
|
|
Total Nation Building & Jobs Plan, National Partnerships, Closing the Gap & capital – non-government schools
|
1,751,011
|
|
Government and non-government schools
|
|
|
Total non-government capital(a)
|
0
|
|
Total National Partnership payments
|
370,916
|
|
Total Nation Building & Jobs Plan
|
5,359,366
|
|
Total
|
5,730,282
|
(a) From 1 January 2009 capital expenditure for government schools is included in the National Schools SPP. For consistency, the National Schools SPP for non-government schools includes capital grants totalling $125.2 m.
(b) The Trade Training Centres in Schools Program operates as a 'deemed' National Partnership through 'Overarching Funding Agreements' with all government and non-government education authorities.
(c) This amount includes $80,000 relating to Closing the Gap – Northern Territory Teacher Housing Program that was not included in the Report on Government Services 2013.
Notes:
Components may not add to totals due to rounding.
Expenditure in respect to a certain program year can be incurred in subsequent years.
National Partnership payments incorporate recurrent and capital elements with the exception of Digital Education Revolution and Trade Training Centres in Schools, which are capital funding only.
Sources: Australian Government DEEWR; Steering Committee for the Review of Government Service Provision, Report on Government Services 2013, Table 4A.8