The Victorian government has rejected the federal government's proposal to increase its share of public school funding from 20 to 22.5 per cent.

A stalemate has emerged with Victoria demanding a 25 per cent contribution. The state’s Education Minister Ben Carroll says that the 2.5 per cent increase would still result in a $300 million shortfall, or about $1,000 per student.

“We've made very clear that it's our intention not to accept that offer,” Mr Carroll has told the ABC. 

“We want [an extra] 5 per cent from the Commonwealth."

This disagreement leaves Victoria at odds with the Commonwealth, while Western Australia and the Northern Territory have already accepted the offer. 

The Commonwealth has set a 30 September deadline for remaining states and territories, including Victoria, to accept the terms.

The dispute revolves around the Schooling Resource Standard (SRS), a needs-based funding model introduced after recommendations by David Gonski. 

Victoria currently funds 75 per cent of the SRS for public schools, while the federal government covers 20 per cent. 

Victoria wants the Commonwealth to raise its share to 25 per cent.

Mr Carroll criticised the federal funding for private schools, which stands at 80 per cent of their SRS, calling it “unfair” compared to public schools.

The National Catholic Education Commission says Mr Carroll has “grossly muddled” the facts, noting that private schools receive reduced funding based on family incomes.

Federal Education Minister Jason Clare said the Commonwealth had already secured deals with Western Australia and the Northern Territory and expressed hopes of reaching a deal with Victoria, but stressed that the funding was tied to reforms aimed at improving student outcomes.

“This isn’t a blank cheque,” Mr Clare said.

Mr Carroll argues that the Commonwealth should contribute more, given its revenue from the goods and services tax (GST).

“Where we don't line up is what we believe the Commonwealth government, with their rivers of GST gold, should be delivering for our schools,” he said.

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