Billions in Gonski funds unlocked for NSW after Julia Gillard and Barry O’Farrell reach an agreement.

Source: TheDailyTelegraph

Prime Minister Julia Gillard has reportedly reached an agreement with NSW Premier Barry O’Farrell on Gonski

PRIME Minister Julia Gillard has reached an agreement with NSW on the Gonski reforms.

The Daily Telegraph understands that Ms Gillard and Premier Barry O’Farrell will hold a joint press conference this afternoon to announce that they have reached an agreement on unlocking billions of dollars for NSW schools.

It comes just four days after the Council of Australian Governments meeting in Canberra, where Ms Gillard was unable to support a single state or territory to support her Gonski reforms.

Ms Gillard has asked the NSW government to commit $1.7 billion to the new funding model and the Commonwealth will pay $3.3 billion.

It represents a 35 per cent funding increase for NSW schools.

NSW has been considered the most likely Coalition government to sign up for the reforms.

Under the model, every Australian primary student would get $9271, secondary students would get $12,193 each and there would be extra money in six loadings for disadvantage, size and location of the school.

The Commonwealth will provide $2 for every extra $1 invested by the states and a premium indexation rate of 4.7 per cent if the states commit to grow their school budgets by 3 per cent a year over the next six years.

Ms Gillard said the Commonwealth’s contribution would be partly funded by a $2.3 billion cut to higher education, leading to criticism of “robbing from Peter to pay Paul”.

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