The ACT's education system is grappling with a severe financial and operational crisis, marked by a $70 million budget overspend on staffing and reports of teachers managing classes of up to 40 students. This situation points to deep-seated, systemic issues within the territory's education directorate.
A Budget Spiral Years in the Making
Warning signs about escalating education costs have been visible for several years, but the 2024-25 financial year brought the problem into sharp focus. The ACT government exceeded its budgeted staffing costs for the Education Directorate by nearly $70 million. This pattern is not new; the directorate has consistently overspent on staff for multiple consecutive years.
Each year, different justifications have been offered, ranging from the impacts of COVID-19 to higher salaries under new enterprise agreements. Despite increasing the staff budget annually, expenditures have repeatedly surpassed the allocated funds. A government spokesperson stated that hiring practices were intended to address student needs, with the annual shortfall covered by reallocating money from other areas of the directorate, such as deferred maintenance or revenue from international students.
Teachers Bear the Brunt in Overcrowded Classrooms
While the budget ballooned, the situation on the ground for teachers deteriorated. A Canberra public school teacher revealed to The Canberra Times that it is now common for staff to manage classes containing up to 40 students, a significant increase from the typical range of 21 to 30. This is occurring despite the directorate's claim that public schools began the 2025 year fully staffed.
Educators are also being burdened with extra playground duties and losing crucial planning and administration time. "The uncertainty has created a huge amount of anxiety and stress," the teacher reported, highlighting the human cost of the financial mismanagement.
Minister Points to 'System-Wide Mismanagement'
ACT Education Minister Yvette Berry acknowledged the overspend "isn't a surprise," yet admitted she was initially unaware of the precise cause. After discussions with schools about resource changes, she realised the core issue was excessive staffing expenditure. Minister Berry subsequently blamed the directorate she oversees for "system-wide mismanagement."
The crisis prompted urgent action. On July 21, 2025, school principals were informed that 72 out of 92 schools would exceed their budgets by year's end. After some principals instructed staff to cut costs, Minister Berry announced a spending review a week and a half later. However, it took two months just to establish the terms of reference for this review, which will examine major policies like the explicit teaching of maths and English.
The government's final response to the review is not expected until May 2026. Under pressure from the opposition, crossbench, and unions, Minister Berry has promised schools can hire the same number of teachers in 2026, placing the system in a holding pattern while a long-term solution is sought.
