Bronwyn Hinz, University of Melbourne

1
MISSING THE FOREST FOR THE TREES
How Australias dynamic federal structures and
processes affect the school funding settlement

• Bronwyn Hinz, University of Melbourne
• www.bronwynhinz.com
• Paper presented at the Australian Social Policy
  Conference, An Inclusive Society? Practicalities
  and Possibilities, Sydney 10 July 2009

2
Introduction

• Australias school funding system one of the
  most complex, inconsistent and opaque in the
  developed world
• Federalism a major contributor, key challenge and
  potential vehicle for reform
• We lack a dispassionate, rigorous analysis of
  federalism in relation to school funding in
  Australia.
• Parallel debates on common problem, going
  nowhere.
• QUESTION How, and to what extent, does
  federalism impact Australias school funding
  arrangements?

3
Australias school funding settlement

• Contested and opaque.
• Consensus arrangement is inefficient,
  inconsistent, obstructive and even detrimental.
• Problems and complexity attributed to
• Structure of Australian federalism
• Overlapping State and Commonwealth
  responsibilities.

4
Government recurrent funding for schools
(2006-2007)
5
Research to date has severe limitations

• Poor methodology (limited or skewed data, weak or
  non-existent conceptual and theoretical
  frameworks)
• A focus on the relative funding shares of
  government and non-government schools, and/or
  outcomes in terms of test scores, social equity
  or choice.
• Trenchant ideological, political, sectoral and
  geographical divisions
• An emphasis on the Commonwealth government at
  expense of the broader, intergovernmental
  settlement, intergovernmental relations or
  political structures.

6

• Most seriously, federalism ignored or falsely
  understood as static institutions and rules.
• Federalism is a complex and dynamic system of
  processes and institutions, embedded in, and
  interacting with society.

7
Federalism system ofdynamic interactions

• Intergovernmental processes and their dynamic
  interplay with political actors and institutions
  are most indicative of federations evolution and
  operation (as opposed to Constitution)
• They are also most promising avenues for reform
• But, received minimal analysis in Australia,
  especially in relation to school funding

8
These structures, processes and institutions

• Constitution
• Intergovernmental bodies (COAG, MCEETYA etc)
• Intergovernmental fiscal financial arrangements
• Regulation
• are moderated by political actors
  circumstances.
• So, the operation, and impact of each different
  under different constellations of political power

9
More than a power grab

• Trajectories of Australian federalism (Parkin
  Anderson 2007)
• Program federalism reengineering tied grants
  for greater Commonwealth control
• Howard government putting advisory arrangements
  under direct ministerial control.
• Rudd Building the Education Revolution
• Reform of tied grants (SPPs)? What consequences?
• Parallel federalism unilateral Commonwealth
  action in state spheres
• Howard giving grants directly to school
  communities
• Rudd Teach for Australia
• Propose shake-up of school funding policies
  unilateral approach?

10
Reconception and moving forward

• A new, interdisciplinary approach is needed to
  transcend academic, ideological and political
  divisions, and explore the complex, dynamic
  nature of federalism
• Starting points
• New intuitionalism (March and Olsen)
• Frame-reflection (Schon and Rein)

11
Concluding remarks

• Federal processes, dynamics and institutions play
  major role in shaping creation, evolution and
  operation of Australias school funding
  settlement
• The need to understand the mechanics and dynamics
  of current and past intergovernmental funding
  settlements within federal framework has never
  been greater.
• This new research and understanding could provide
  insight into other complex policy problems, such
  as health