In brief - Schools not immune to financial difficulties
Escalating debt levels due to blowout of operational costs and
unpaid school fees can threaten the viability of schools.
Establishing a nationwide regulator would allow greater scrutiny of
the financial position of schools.
Financial management of schools impacting on education of
children
Victoria has recently seen a worrying pattern of schools
acquiring high levels of debt, leaving them with no option but to
go into administration and close their doors to students. In
Victoria over the last six months alone, three schools have gone
into administration.
While the reasons behind the decisions to go into administration
have been different, strictly speaking, no one problem is the sole
cause of the financial difficulty. Evidently problems in the
financial management and feasibility of schools are impacting upon
the education of children.
