NSW private schools are diverting hundreds of millions of dollars in government funding into capital projects to build luxurious facilities including aquatic centres and performing arts centres instead of lowering fees, according to the Greens.
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NSW Greens MP John Kaye said 62 elite schools had effectively diverted all of the $85 million in state government funding they received to build "extravagant" facilities to attract wealthy students.
An analysis of My School data showed only a third of the $270 million in combined public funds provided to the schools by the federal and state governments was spent on operations, Dr Kaye said.
Most ($189 million) was spent on capital works or repaying debts for past capital works, he said.
"This is public funds being used in an expensive and destructive arms race between exclusive private schools to lure in high net wealth families," Dr Kaye said.
"Schools like St Catherine's, MLC and SCEGGS Redlands are pouring all of the state funds that are supposed to support lower fees, into extravagant building projects," Dr Kaye said.
St Catherine's in Waverley has lodged a $62 million development proposal with the NSW Government to build a professional grade lyric theatre, research centre and aquatic centre.
Dr Kaye said the school already had a pool, and generated $26 million from fees and fundraising, but spent only $23 million on operations. He argued the $7.6 million a year spent on capital works and servicing debts for past building projects had been diverted from the school's $4.5 million in government recurrent funding.
"Public education could spend the same money [$62.5 million] to purchase land and build high schools for at least 2000 students," he said.
Dr Geoff Newcombe, executive director of the Association of Independent Schools of NSW, said the Greens analysis was based on speculation.
"It is clear that parent contributions fund capital expenditure in independent schools as well as the vast majority of debt servicing costs. The Greens also fail to understand that servicing of debt is a legitimate use of recurrent funds," Mr Newcombe said.
St Catherine's headmistress Dr Julie Townsend said capital works were needed in all schools "regardless of them being independent, state or systemic".
The St Catherine's community was already raising funds to support the development project, she said.
"Our parents pay taxes to the government, and have the right to expect that some of those taxes are used to fund every school-age child, regardless of the school they choose," she said.
"Many of our parents make significant sacrifices to their lifestyle to pay for a St Catherine's education, and their school fees are used to improve our facilities. There are many parents in public schools who could afford an independent education for their children but choose to spend their income elsewhere."
An MLC School spokeswoman said it was replacing ageing classrooms with modern facilities. The development wasn't funded by the government, but by parent donations, modest borrowings and "prudent financial management over a number of years".
A Redlands spokesman said: "All Redlands capital projects are funded from parent contributions and bank borrowings, as required."
