Parent Question: How Do Capital Grants Work?
Catholic schools tend to fund the vast majority of their capital expenditure through borrowings, donations and parental fees and charges. However, governments also provide assistance through capital grant programs. These include the Australian Government’s Capital Grants Program (CGP). These capital grants are allocated by Catholic Capital Grants (Victoria) Limited (CCG) through a needs-based, rigorous process. This ensures that the allocation of capital grants favours schools that have high levels of educational disadvantage (as measured by the socioeconomic level of the school community) and projects for which schools can demonstrate genuine educational and financial need.
Description and eligibility Capital funding is intended for two categories of projects:
• New places – building new schools and expanding capacity at existing schools in areas of Victorian experiencing significant enrolment demand
• Facility upgrades – upgrading facilities in existing schools according to need.
The Victorian Government’s requirements for the administration of this program are set out in operational guidelines.
As a funding condition, Catholic schools must match the contribution of the Victorian Government to projects (in aggregate, over the life of the program).
To be eligible for funding, schools must have independent costings for the proposed project, including cash flow, and evidence of contingency planning and plans. The project must also have a timing schedule indicating construction can begin within 12 months of the announcement of funding and can be completed within a further 12 months (although extensions and exceptions can be sought).
The assessment criteria for projects include:
• Enrolment demand
• Location
• Condition
• Financial and socioeconomic need
• Project outcomes
• Project readiness.
Applications are assessed against these criteria and those which best meet the criteria are prioritised for funding. The criteria carry equal weighting in this assessment.
Taken from : Allocating Government Grants to Catholic Schools in Victoria (September 2021)
