ACT schools face funding crisis as debt soars and teachers reject pay offer
ACT's 77 overbudget schools and rejecting teachers collide with a $1 billion deficit and $14.1 billion net debt by 2030.
The ACT's public school system is being pulled apart by three connected crises. In May 2026, an independent review found 77 of the territory's 92 public schools running over budget.
The government responded by committing to a centralised "one public education system" model with an initial $9.3 million investment. At the same time, teachers are pushing back.
Pay bargaining has run since July 2025, and the government's third offer of 9 per cent over three years was voted down within two days, triggering warnings of further strikes. The underlying problem is financial: the ACT faces a $1 billion deficit in 2025-26, a $323.4 million shortfall forecast for 2026-27, and net debt heading toward $14.1 billion by 2029-30.
The territory's school system was designed in the 1970s to be world-class and expensive per student, a model that worked under strong Commonwealth funding and rising enrolments. Neither of those conditions exists now.
- 77 of 92
- Schools over budget
- 14.1 billion dollars
- Net debt by 2029-30
- 1 billion dollars
- Deficit 2025-26
- 9 per cent over three years
- Pay offer rejected
Why it mattersThe ACT's education system is caught between historical design costs, shrinking public enrolment and budget deficits that leave no room for teacher pay rises.
AustraliaACT families face continued school budget strain and potential strikes as the territory's financial crisis limits investment in teachers and infrastructure.
✓ Claims checked against the source. checked 4 h ago
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