State mini–budget foreshadows a real cut
By Maree O’Halloran
The State Government's mini-budget brought down on April 6 appears to foreshadow a real cut in funding for public schools and TAFE colleges. Those cuts can be reversed if the Carr Government makes different policy decisions about public education.
The mini-budget forecasts $356 million additional recurrent funding for education. The Government says this funding is dedicated to the class size reduction program and the 5.5 per cent interim salaries increase for teachers. If the $356 million is quarantined for these purposes, then the mini-budget appears to provide no general increase for inflation.
The recurrent budget estimate was also announced with no indication of actual expenditure in this financial year. Thus, the real state of the education portfolio is hidden.
The $287 million held in school bank accounts is, of course, not additional money and does not represent an increase in the education budget. Hence, the Government's total figure of a $643 million increase to education is nothing more than manipulation of figures.
The 2003 State Budget cut funding to NSW schools and colleges in real terms while boosting private school funding.
At a time when the Howard Federal Government is pouring obscene amounts of money into private schools, the Carr Labor Government has an opportunity, in the June 22 Budget, to redress the imbalance and cut their own subsidies to private schools.
The Carr Government has made a small first step by cutting the interest rate subsidies to private schools. Categories 1, 2 and 3 private schools will be ineligible to apply for interest rate subsidies. Furthermore, the interest rate available in the scheme will be reduced from 10.5 per cent to 7.5 per cent. This is long overdue recognition that the scheme is a profit making rort for private schools.
After nine years of surplus budgets and the rapid retirement of state debt, the state's finances are not parlous. Instead, this Government is responsible for making a number of poor policy decisions that have resulted in the running down of the state's infrastructure.
There are a number of areas where the State Government could have made more savings to invest in public education, for example:
- the school students' transport scheme (about $300 million is spent to transport students past their local public school)
- payroll tax exemptions to private schools (worth $75 million)
- means testing the back to school allowance (a potential saving of $29 million), and
- cutting recurrent funding to private schools (currently at $580 million).
Teacher salaries
It is no surprise to the State Government that they are responsible for paying increases awarded by the State's Industrial Relations Commission. While Federation notes the 5.5 per cent interim increase to teachers is fully funded, there appears to be no provision for the decision due by June 30. The final decision must recognise, according to the Industrial Relations Commission's judgment, "profound" and "significant" changes in the value of teachers' work.
Teachers across NSW demand from the Carr Government a 25 per cent salary increase and full funding of the final decision from the Industrial Relations Commission. Teachers will not accept any loss of service provision to students in public schools and TAFE colleges across NSW.
March Council determined that further industrial action may be necessary about salaries.
Maree O'Halloran is the President.
Salaries bans remain in place
For further information
May 2004 contents
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