Australian School Funding and Finance Capital Expenidture (Part 3)

We have gone over on how generally how Australian education funding coming from and composition of the recurrent income as well. If you missed those, you can find them at (Part 1) and (Part 2).

Capital expenditure is not part of the recurrent income of the schools and they are also very important as well when considering education funding. This is particularly true with government schools as their recurrent income only really only fund the day to day operations where by far the majority of their capital projects are funded by federal and state governments out of their education budgets. Majority of the Catholic and independent school’s capital expenditure is funded by themselves but also funded in part by federal and state governments.

With further delay following tables list the capital expenditure of Australia schools and break them down into government, Catholic and independent as well. This data is obtained from the Australian Curriculum, Assessments and Reporting Authorities (ACARA).

All Australian School Capital Expenditure For The Year 2016 ($000s)

 New South WhalesVictoriaQueenslandSouth AustraliaWestern AustraliaTasmaniaNorthern TerritoryAustralian Capital TerritoryAustralia
Australian government capital expenditure53,888137,88955,62613,60032,2073,70730,4416,037333,395
State/territory government capital expenditure391,934217,965287,25522,256317,43253,55646,02131,3111,367,729
Capital expenditure from new school loans138,380222,939152,71161,609150,57818,9804,3498,827758,372
Income allocated to current capital projects279,786338,170184,96036,47785,98920,98882017,079964,270
Capital expenditure from other private sources337,805306,615160,10577,47390,3499,60614,2169,8821,006,052
Total capital expenditure1,201,7941,223,578840,657211,416676,554106,83795,84773,1364,429,819

For the year 2016, there are 3,818,362 full-time equivalent students in all
Australian schools for funding purpose, per student that is $1160 per student spend on capital expenditure.

Australian School Capital Expenditure For Government Schools 2016 ($000s)

 New South WhalesVictoriaQueenslandSouth AustraliaWestern AustraliaTasmaniaNorthern TerritoryAustralian Capital TerritoryAustralia
Australian government capital expenditure9,73497,13926,4163,77813,3501,03225,1702,726179,345
State/territory government capital expenditure381,582215,452241,41822,234314,30852,70641,17431,1361,300,010
Capital expenditure from new school loans000000000
Income allocated to current capital projects49,0712390076600050,076
Capital expenditure from other private sources1,47614,1543,5037,24800920027,300
Total capital expenditure441,863326,98427133733,260328,42453,73867,26433,8621,556,732

For the year 2016, there are 2,488,900 full-time equivalent students in all
Australian government schools for funding purpose. Total capital expenditure on all government schools Australia wide is 1.56 Billion and per student that is $625 per student spend on capital expenditure. Also to note less than 2 per cent of capital expenditure by the Government/Public school sector in 2016 is from private sources.

Australian School Capital Expenditure For Government Schools 2016 ($000s)

 New South WhalesVictoriaQueenslandSouth AustraliaWestern AustraliaTasmaniaNorthern TerritoryAustralian Capital TerritoryAustralia
Australian government capital expenditure22,00423,85117,3075,6869,0681,4511,7352,14883,249
State/territory government capital expenditure7,4461,05319,11941,6017872,032932,052
Capital expenditure from new school loans47,94393,84261,21324,61286,7949,8262,036290326,556
Income allocated to current capital projects30,707166,50052,6798,98324,94810,8645908,103303,373
Capital expenditure from other private sources150,92458,50681,08639,44137,6772,94510,1980380,778
Total capital expenditure259,025343,752231,40378,726160,08925,87316,59010,5501,126,008

For the year 2016, there are 725,817 full-time equivalent students in all
Australian schools within the Catholic sector for funding purpose. Total capital expenditure on all catholic schools Australia wide is 1.13 Billion and per student that is $1551 per student spend on capital expenditure. Also to note 10.2 per cent of capital expenditure by the Catholic school sector in 2016 is sourced from Federal and State government funding.

Australian School Capital Expenditure For Independent Schools 2016 ($000s)

 New South WhalesVictoriaQueenslandSouth AustraliaWestern AustraliaTasmaniaNorthern TerritoryAustralian Capital TerritoryAustralia
Australian government capital expenditure22,15016,89911,9034,1379,7881,2243,5371,16370,801
State/territory government capital expenditure2,9061,46026,717181,523622,81516635,668
Capital expenditure from new school loans90,437129,09791,49836,99863,7839,1542,3138,537431,816
Income allocated to current capital projects200,008171,431132,28127,49460,27410,1252318,976610,821
Capital expenditure from other private sources185,405233,95575,51730,78452,6726,6613,0979,882597,973
Total capital expenditure500,906552,842337,91699,430188,04127,22611,99328,7251,747,079

For the year 2016, there are 603,046 full-time equivalent students in all Independent Australian schools for funding purpose. Total capital expenditure on all government schools Australia wide is 1.75 Billion and per student that is $2897 per student spend on capital expenditure. Also to note 6.1 per cent of capital expenditure by the Independent school sector in 2016 is sourced from Federal and State government funding.

As you can see from the above capital expenditure is one area where government and public schools tend to suffer in terms of funding. Government and public schools play host to 65.2 per cent of total students but only accounts for 35 per cent of total capital expenditure. Catholic school sector spends 248 per cent per student on capital expenditure compared to government and public schools. When you look at the independent schools this is even in more stark contrast, the independent school sector spends in 2016 is 464 per cent per student compare to government and public school sector.

This number for 2016 is very typical from year to year. There was a large bump during the year during and immediately post 2008 financial crisis years. This actually is one of the best things happened to the government and public schools in decades. I have personally visited a very large number of public schools in and near my area. It is very obvious that many schools had no significant capital expenditure for decades and only new buildings they had are from that surge. My view is that government schools need more capital investment, I will try to do another follow up this blog if time permits in the near future.

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