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The Age
11-05-2025
- Business
- The Age
Victoria secretly slices $2.4b from public schools, delays funding promise
In November 2023, the Victorian and Commonwealth governments signed an agreement which committed Victoria to provide 75 per cent of the SRS by 2028. Cabinet-in-confidence documents reveal Victoria quietly abandoned this commitment four months later and is now not planning to reach the benchmark until 2031. This puts Victoria three years behind Queensland, which in March this year agreed to reach the benchmark by 2028, and six years behind NSW, which brought forward more funding for its public schools to reach the benchmark this year. A federal government source with knowledge of the Commonwealth's negotiations with the states and territories, but unable to discuss them publicly, confirmed this is why Victoria will receive less money than Queensland over the next decade. The difference in dollar terms to Victorian schools is initially small. Under the government's revised timeline, Victoria is this year providing its state schools about $35 million less than what they had previously committed. By 2027, the difference in annual state funding is more than $300 million, and by 2028, it is half-a-billion dollars. The cumulative impact across the forward estimates of the state budget is $1 billion, and by 2031, the year when Victoria will reach the 75 per cent benchmark, the total shortfall is calculated to be $2.4 billion. When the resultant reduction in federal funding is added, Victoria's state schools will be left nearly $3 billion worse off. This year's combined, state and federal government funding for Victorian state schools is about $13 billion, which is 90 per cent of the SRS. Allan, Pallas, ministers Danny Pearson, Symes and Carroll, their respective chiefs of staff and senior bureaucrats from the departments of premier and cabinet, treasury and finance and education are recorded in cabinet committee minutes as being at the March 20, 2024, meeting where the decision was taken to delay Victoria's commitment. The Budget and Finance Committee, the new name given to the Expenditure Review Committee, is the most senior government forum for making budget decisions. Government documents show Carroll proposed a compromise which would have meant Victoria reached the 75 per cent benchmark by 2029, booked more modest savings and provided additional funds ahead of the next pay deal with teachers, which is due to be negotiated this year. His proposal was not supported by the premier or then-treasurer. The School Resource Standard is only a measure of recurrent funding and does not take into account capital investments by governments in new and upgraded schools. A spokesperson for Minister Carroll said Victoria's school-building program, which will result in 19 new schools opening next year, was the nation's largest school-building program. 'We will fund government schools at 75 per cent of the SRS, delivering increased funding in stages during the term of the agreement,' the spokesperson said. 'The Victorian government is currently finalising these discussions with the Commonwealth. As they are ongoing, it would be inappropriate to comment further.' Loading Carroll declined to say whether he had opposed the cuts. A spokesperson for federal Education Minister Jason Clare confirmed that a new, 10-year bilateral agreement between the state and the Commonwealth setting out the timeframe for Victorian state schools to receive full SRS funding had not been finalised. 'The Commonwealth will continue to work with the Victorian government on their associated bilateral agreement which will set out the funding trajectory over the life of the agreement,' the spokesman said. When asked if the federal government would seek to convince Victoria to reinstate its commitment to fully fund state schools by 2028, the spokesperson replied: 'The minister will not be negotiating this bilateral agreement through the media.' Loading State opposition education spokeswoman Jess Wilson said this month's state budget would test Carroll's authority within government to reverse the funding call. 'These secret cuts have exposed Labor's utter hypocrisy on public school funding and their failure to provide Victorian students with the education they need and deserve,' she said. 'Whilst spending years demanding the Commonwealth lift their proportion of government school funding beyond agreed levels, the Allan Labor government was secretly cutting billions from public schools.' The Gonski education reforms, named after businessman David Gonski, are centred on a needs-based funding model in which schools are provided a base rate of funding per student and additional loadings to address social, economic and cultural disadvantages. Albanese declared during the federal election campaign he had secured support from all state and territories to fully fund the Gonski model. Victoria's altered funding trajectory for state schools means that instead of delivering a steady uplift of between $100 million and $200 million a year, funding will stay flat until 2029. An additional $1 billion will then be dumped into the system by 2031. Confirmation that Victoria is Australia's laggard state in adopting the Gonski reforms is at odds with its claim to be the 'Education State'. The funding delay maintains the current divide between government and non-government schools, which already receive 100 per cent of their SRS funding from state and Commonwealth governments.
Sydney Morning Herald
11-05-2025
- Business
- Sydney Morning Herald
Victoria secretly slices $2.4b from public schools, delays funding promise
In November 2023, the Victorian and Commonwealth governments signed an agreement which committed Victoria to provide 75 per cent of the SRS by 2028. Cabinet-in-confidence documents reveal Victoria quietly abandoned this commitment four months later and is now not planning to reach the benchmark until 2031. This puts Victoria three years behind Queensland, which in March this year agreed to reach the benchmark by 2028, and six years behind NSW, which brought forward more funding for its public schools to reach the benchmark this year. A federal government source with knowledge of the Commonwealth's negotiations with the states and territories, but unable to discuss them publicly, confirmed this is why Victoria will receive less money than Queensland over the next decade. The difference in dollar terms to Victorian schools is initially small. Under the government's revised timeline, Victoria is this year providing its state schools about $35 million less than what they had previously committed. By 2027, the difference in annual state funding is more than $300 million, and by 2028, it is half-a-billion dollars. The cumulative impact across the forward estimates of the state budget is $1 billion, and by 2031, the year when Victoria will reach the 75 per cent benchmark, the total shortfall is calculated to be $2.4 billion. When the resultant reduction in federal funding is added, Victoria's state schools will be left nearly $3 billion worse off. This year's combined, state and federal government funding for Victorian state schools is about $13 billion, which is 90 per cent of the SRS. Allan, Pallas, ministers Danny Pearson, Symes and Carroll, their respective chiefs of staff and senior bureaucrats from the departments of premier and cabinet, treasury and finance and education are recorded in cabinet committee minutes as being at the March 20, 2024, meeting where the decision was taken to delay Victoria's commitment. The Budget and Finance Committee, the new name given to the Expenditure Review Committee, is the most senior government forum for making budget decisions. Government documents show Carroll proposed a compromise which would have meant Victoria reached the 75 per cent benchmark by 2029, booked more modest savings and provided additional funds ahead of the next pay deal with teachers, which is due to be negotiated this year. His proposal was not supported by the premier or then-treasurer. The School Resource Standard is only a measure of recurrent funding and does not take into account capital investments by governments in new and upgraded schools. A spokesperson for Minister Carroll said Victoria's school-building program, which will result in 19 new schools opening next year, was the nation's largest school-building program. 'We will fund government schools at 75 per cent of the SRS, delivering increased funding in stages during the term of the agreement,' the spokesperson said. 'The Victorian government is currently finalising these discussions with the Commonwealth. As they are ongoing, it would be inappropriate to comment further.' Loading Carroll declined to say whether he had opposed the cuts. A spokesperson for federal Education Minister Jason Clare confirmed that a new, 10-year bilateral agreement between the state and the Commonwealth setting out the timeframe for Victorian state schools to receive full SRS funding had not been finalised. 'The Commonwealth will continue to work with the Victorian government on their associated bilateral agreement which will set out the funding trajectory over the life of the agreement,' the spokesman said. When asked if the federal government would seek to convince Victoria to reinstate its commitment to fully fund state schools by 2028, the spokesperson replied: 'The minister will not be negotiating this bilateral agreement through the media.' Loading State opposition education spokeswoman Jess Wilson said this month's state budget would test Carroll's authority within government to reverse the funding call. 'These secret cuts have exposed Labor's utter hypocrisy on public school funding and their failure to provide Victorian students with the education they need and deserve,' she said. 'Whilst spending years demanding the Commonwealth lift their proportion of government school funding beyond agreed levels, the Allan Labor government was secretly cutting billions from public schools.' The Gonski education reforms, named after businessman David Gonski, are centred on a needs-based funding model in which schools are provided a base rate of funding per student and additional loadings to address social, economic and cultural disadvantages. Albanese declared during the federal election campaign he had secured support from all state and territories to fully fund the Gonski model. Victoria's altered funding trajectory for state schools means that instead of delivering a steady uplift of between $100 million and $200 million a year, funding will stay flat until 2029. An additional $1 billion will then be dumped into the system by 2031. Confirmation that Victoria is Australia's laggard state in adopting the Gonski reforms is at odds with its claim to be the 'Education State'. The funding delay maintains the current divide between government and non-government schools, which already receive 100 per cent of their SRS funding from state and Commonwealth governments.
CBS News
05-05-2025
- Business
- CBS News
Mayor Bass says she'll take a pay cut as city's budget concerns continue
Los Angeles Mayor Karen Bass says that she will take a pay cut and hold off on scheduled raises for her staff members as the city continues to address the nearly $1 billion shortfall in the budget for the 2025-26 fiscal year. "The mayor is taking a pay cut and Mayor's Office staff are not taking their regularly scheduled cost of living adjustments office-wide in June 2025 (4%), December 2025 (2%) and June 2026 (4%)," said Zach Sedil, a spokesman for Bass' office. They didn't say exactly how much of a pay cut the mayor would take, nor when it would go into effect, but her annual salary is approximately $301,000. In April, Bass delivered her State of the City Address, laying out a $13.9 billion budget that included the elimination of thousands of city positions and more than 1,600 layoffs. While the budget is technically on par with the 2024-25 budget, Bass said that they would close the gap through layoffs and department consolidations as costs increase and revenues decrease. At the time, she told the city's workforce, "You are the city's greatest asset … but I want to be straight with you. My proposed budget, unfortunately, includes layoffs, which is a decision of absolute last resort." With the personnel cuts, the proposed budget would be an increase of 8.2% over the adopted spending plan for last year's budget. The proposal is still being reviewed by the City Council's Budget and Finance Committee for approval. Since announcing her proposal, Bass has also visited the state capitol to lobby for a relief package of $2 billion. Deliberations on the proposal continue on Monday and the new fiscal year begins in July.
Epoch Times
24-04-2025
- Business
- Epoch Times
Los Angeles Mayor Proposes Layoff of 1,647 City Workers Amid $1 Billion Budget Shortfall
The City of Los Angeles faces a projected $1 billion budget deficit for the 2025–2026 fiscal year, leading embattled Mayor Karen Bass to call for laying off 1,647 city workers in her $13.95 billion Los Angeles is grappling with 'This budget makes investments to continue our progress on critical challenges like decreasing homelessness and crime while bringing the City's finances into balance and driving change including common sense consolidations of related departments,' Bass said in a statement. 'Homelessness is down. Crime is down. These are tough challenges, and our progress shows we can do anything in this city of limitless potential.' City Administrative Officer Matt Szabo In her State of the City address on April 21, Bass spoke to the city workforce directly, saying the layoffs were a last resort. 'Make no mistake—you are this city's greatest asset. Every single day, you come to work in dedicated service to the people of Los Angeles, often in challenging working conditions—you help Angelenos and you make our city better every day. But I want to be straight with you—my proposed budget unfortunately includes layoffs, which is a decision of absolute last resort.' Related Stories 4/23/2025 4/23/2025 The mayor's budget also According to Mejia, on the Mejia has noted that legal payouts Moreover, city employees are due for an agreed-upon $250 million pay raise in 2025-2026, according to Szabo. Meanwhile, the city's reserve fund has been tapped to balance the budget to the tune of hundreds of millions. Mejia predicts the general fund revenue to Mejia has been a critic of the city's financial management. In 2024, he highlighted the problem. 'As we are all painfully aware, revenue shortfalls, liability payouts, and departmental over-expenditures caused the City to end the year in deficit, requiring drawing down nearly half the City's General Fund Reserves,' he Bass's budget entails the The plan does earmark $103.7 million for 227 new Fire Department hires, half of which will be firefighters. Los Angeles will host the USC also said that the games will increase living costs in Los Angeles. Studies Angelenos will have an opportunity to offer public comment to the Budget and Finance Committee on April 25 at 1 p.m. at Van Nuys City Hall and April 28 at 4 p.m. at City Hall in Downtown Los Angeles. The City Council must review and approve a budget by June 1.
Yahoo
25-02-2025
- Business
- Yahoo
Gridlock continues in effort to pass 2025 Jefferson County budget
PINE BLUFF, Ark.- Jefferson County began the year with no 2025 budget and a county government shutdown. While Gov. Sarah Huckabee Sanders signed a bill that helped get county workers their paychecks, a budget still hasn't been passed. Judge Gerald Robinson's Concessions Budget was approved at Monday night's Budget and Finance Committee Meeting, passing it on to the full quorum court. Arkansas Gov. Sarah Huckabee Sanders signs Jefferson County budget correction bill, goes into immediate effect Following a motion to adopt the budget, discussion began, and the questions started up. 'Were all of the elected officials aware of the changes that were made,' Justice of the Peace for District Seven Melanie Dumas asked. Jefferson County Judge Gerald Robinson responded to Dumas, informing all justices that the budget had been emailed out. 'You do realize that the sheriff and Tony (Washington) were left off from your email,' Justice of the Peace District Three Reginald Johnson said. Robinson said he didn't realize they had been left out. Jefferson County employees say they feel relief as governor signs bill requiring county to use 2024 budget until 2025 budget passes Sheriff Lafayette Woods Jr. and Jefferson County Tax Collector Tony Washington spoke out, saying they never received notice of the meeting or the new budget and had to learn about it and find it through alternative routes. 'Justice Johnson you are correct we were not included in those correspondents, we never are,' Woods said. Washington's is one of the departments that is taking a cut in Robinson's budget. 'There is not enough money for me to actually operate my office,' Washington said. The budget came to a vote and failed, meaning there is still no 2025 budget. The county is also approaching the expiration date for its procedural ordinance on Feb. 28. 'Basically, a procedural ordinance lays out the rules of how we do everything, how the meetings are conducted, and yes it's a very vital part of our process,' Johnson said. Jefferson County judge back in court over not paying employees as budget crisis continues The county judge said he expected the outcome of the meeting but hopes the gridlock won't apply to the voting and adoption of a new procedural ordinance. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
