Scotch College

2007 School budget adopted

At its meeting in August 2006, the School Council adopted the 2007 Budget, which determines the fees payable by parents in the forthcoming year. The fees for 2007 will be increased by 6.5% over the fees payable for 2006. Tuition fees for 2007 are payable by three instalments in September 2006 and February and May 2007. Boarding fees also are payable by three instalments, in February, May and September 2007.

The School’s income for 2007 is expected to be $41.8 million, made up as follows:

We expect that the Commonwealth and State Governments will contribute a total of $4.2 million towards tuition fees on a per student basis, as follows:

In accordance with the standard practice adopted by Scotch over many years, these amounts are credited to parents’ fee accounts, and the amount actually payable by parents is reduced accordingly. In substance, the contributions from governments are not for the benefit of the School, but are a subsidy to fee-paying parents.

As government contributions are not received for non-Australian resident students, their fee accounts do not include the reduction given in respect of all other students. The contribution per student made by the Commonwealth Government is calculated as a percentage of the annual average recurrent cost of educating a student at a government school; i.e., it is based on the total cost of teachers’ salaries and other recurrent expenses, but specifically excludes the cost of depreciation of physical facilities or of other capital works.

The major part of recurrent expenditure at Scotch is for salaries (over 60%). In 2007, expenditure on salaries and on-costs is expected to increase by 6.6%, compared with a fee increase of 6.5%. The quality of the teaching staff is fundamental to what we do at Scotch, and the policy of the School is to provide financial reward and opportunity for professional development. This ensures that we recruit and retain staff of the highest calibre and provide an environment in which their professionalism can flourish.

The other major area of expense is property maintenance – grounds, cleaning and depreciation – which in 2007 is expected to total over $7.4 million, or nearly 18% of expected recurrent expenditure.

In 2007 the School plans a major refurbishment of Arthur Robinson House at an estimated cost of $3 million. This cost will be met largely from the School’s long-term property maintenance fund, and will not be a charge on the recurrent budget. It follows similar refurbishments of School House and McMeckan House in recent years to bring them up to contemporary standards. In addition to this refurbishment, the School expects to allocate a further $5 million of capital expenditure to long-term building maintenance, minor capital works and purchases and property acquisition. It will be a busy year.

Michael Robinson AO
Chairman