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Some of the state's most needy schools will see their funding grow by as much as 60 per cent next year as the state government hands out $664 million, including $97 million in Gonski money, to public schools.
The needs-based funding model will see extra money given to schools with students from low socio-economic backgrounds, who have low-level disability, are still developing their English language skills or are Aboriginal.
There will also be extra funding for isolated and remote schools as part of the the package, which provides money based on student need.
Premier Mike Baird and Education Minister Adrian Piccoli used the funding announcement on Thursday as an opportunity to urge their federal colleagues not to withdraw Commonwealth money from the final two years of the six-year Gonski agreement.
Mr Baird said he would continue to lobby the federal government to commit to the extra years of Gonski and would point to the success of needs-based funding in NSW as proof that the model worked.
Under the model, principals consult staff and parents about the best way to spend the extra funding, and this could include employing extra staff to boost literacy and numeracy, coaching and mentoring for teachers and employing local youth workers.
Mr Piccoli said 84 per cent of NSW public schools would receive extra needs-based funding next year, and 658 schools would receive an increase of more than $50,000 although some schools would get at least $200,000 more.
"Today is an historic day, a massive increase in funding for schools to support students who need it the most, this is the delivery of the Gonski dividend," Mr Piccoli said.
"I do take this opportunity to again urge the Commonwealth, seeing the benefits of these reforms in NSW with announcements like we're making today, to reconsider that decision and to indeed fund the fifth and sixth years of Gonski."
Mr Piccoli said that from next year, every public school with Aboriginal students would receive an extra loading, so that about 52,000 students at 1980 schools would get additional funding.
Homebush West Public School, where more than 95 per cent of students have English as a second language, will receive an extra $400,000 next year.
Principal Estelle Southall said the school would continue to use its funding to mentor young teachers.
"We have about 85 per cent early career teachers here so we can put our most experienced teachers in their classrooms to coach and mentor those teachers," Ms Southall said.
