Scrapping the final two years of Gonski would leave the nation's schools $4 billion poorer, according to school funding expert Jim McMorrow. "We're committed to delivering these funds": Mike Baird. Credit:Matt Blyth NSW schools would be $1.27 billion worse off, with public schools the hardest hit. NSW Premier Mike Baird said: "I understand their budget position but we're committed to delivering these funds because we want to determine whether the educational outcomes of our children have improved. "I'd be saying it's too early for them, at this stage, to be making that decision."

NSW Education Minister Adrian Piccoli said: "Our position is the full six years of Gonski should be funded. We continue to lobby for it. Education Minister Simon Birmingham. Credit:Daniel Munoz "David Gonski is an eminent businessman. He and his expert panel determined that our schools are not funded sufficiently. It's not something put out there by the Labor Party or the unions." Mr Piccoli said NSW was happy to be held accountable for how it was spending federal funds. NSW Minister for Education Adrian Piccoli has vowed to fight if money is cut from the state's schools. Credit:Louie Douvis

"The extra money is not being spent on salaries or class sizes," he said. "It's being spent on things we know work: quality teaching, school counsellors, speech therapists. We are giving targeted support to children in kindergarten at risk of falling behind. "The money is being well spent in NSW," he said. Mr Piccoli said he had taken Senator Birmingham on tours of disadvantaged NSW schools to show how the Gonski funding was making a difference. "I think the budget is the problem – they are in a tough budget situation," Mr Piccoli said. "But I remain optimistic. We are getting a much better reception than when Tony Abbott was prime minister." Acting Victorian education minister Jenny Mikakos slammed the "mean and tricky" decision not to fund the final years of Gonski, saying it would leave that state's schools $1 billion worse off.

Australian Education Union Federal President Correna Haythorpe said: "If Malcolm Turnbull walks away from the Gonski agreements, he will abandon the students who need help the most, by denying their schools the extra resources they need. "We don't need to renegotiate funding agreements – we have six-year Gonski agreements in place and they need to be funded in full." Prime Minister Malcolm Turnbull said on Tuesday: "We are absolutely committed to ensuring that all Australian kids get a great education, whatever school they go to. "Funding is important, but there is a lot more to it, I think, as we all know. The key element is teacher quality and we are very focused on that." Senator Birmingham said the government wants to negotiate a funding model for 2018 onwards that is "fair, transparent, needs-based, affordable and looks beyond just a two-year horizon".

"The Turnbull government knows that funding is important but that what you do with it matters even more," he said. "The government's discussions on future funding will not just be about how more money is spent but will seek to ensure we lift school outcomes, too."