Faculty of Education - Theses
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ItemThe influence of federal-state financial relationships on government provision of funds for education in Victoria, 1945-1970( 1972)The central proposition of the study is that defects in revenue sharing arrangements between the Federal and State Governments have been a major contributing factor to the shortage of funds for government financed education in Victoria. Attention has therefore been concentrated on total funds available to the Victorian Government whether in the form of State revenue, general revenue grants from the Commonwealth, loan funds or specific purpose grants. The increase during the period in specific purpose grants for education is seen as important but not central to the problem of government provision of funds for education. It will be argued that the increasing proportion of Federal Government funds for education provided through specific purpose grants is in large part the result of the unsatisfactory arrangements by which government revenue and loan funds are distributed between Federal and State governments. Chapters 1 and 2 examine the Victorian education system, considering first the inter-relationship of government finance and the provision of finance for education. Attention is given to the method of financing education and to changes in funding patterns over a period of time. The influences leading to the above changes are then analysed. The general conclusion from this section is that, despite increased State effort in provision of funds for education, funds available have not kept pace with the needs of education. The Victorian Government has only limited control over the funds available for education because of its dependence on Federal funds and the absence of State growth taxes. This conclusion indicates the need to examine the financial arrangements between the two levels of government and their influence on education. The discussion of this section takes as its basis a theory of fiscal federal ism which suggests the legitimate goals of Federal financial transfers and appropriate forms of such transfers to achieve these goals. Many financial transfers influencing funds made available for education are shown to be inadequate or in a form inappropriate to the goals established. The strong interrelationships between the types of transfer from the Commonwealth are clearly established, supporting the total pattern of funding approach adopted in the study. As an added dimension to the problem of Federal financial transfers to Victoria, the history of direct Federal involvement in State education is then traced. The unsatisfactory revenue sharing arrangements of the period and the theoretical framework of financial transfers shape the discussion in this section. Finally, some general conclusions suggested by the discussion in the previous chapters are attempted. The issues considered here are:- (a) The extent to which Federal finance for education has replaced State funds or stimulated total resources devoted to education. (c) The extent to which Federal initiatives have led to structural alterations in Victorian education. In addition to the above issues which are specific to Federal and Victorian financing of education during the period covered, a number of other issues which appear to have more general relevance, are considered. (a) The influence of the method by which funds are provided on the effectiveness of their application to educational purposes. (b) The influence of general economic conditions on funds made available for education. (c) The advantages and disadvantages of multiple sources of funding for education.