THE State Government has made a “humiliating backdown” on its refusal to join a national education funding deal, conceding that its standoff with the Federal Government would have forced schools to close their doors.

SA Education Minister Susan Close on Friday told her federal counterpart Simon Birmingham she had changed her mind and would agree to the new scheme.

Schools around the state had been left in limbo about whether they would receive millions in expected funding for the 2018 school year, after advertiser.com.au revealed last week that Dr Close was refusing to sign up.

She claimed the agreement, dubbed Gonski 2.0, would rip $210 million out of SA schools over the next two years.

It will be welcome news to schools around the state who had been left in limbo about whether they would receive millions in expected funding for the 2018 school year, after advertiser.com.au revealed Dr Close’s decision to refuse the new deal last week.

media_camera State Education Minister Susan Close. Picture: AAP / Ben Macmahon

But Senator Birmingham said under law he was unable to hand over $1.3 billion in funding to SA schools in 2018 without her signature.

He said federal Treasury needed Dr Close’s agreement by Tuesday or it would be unable to make its expected January payment of more than $440 million.

Dr Close said: “We are now faced with the terrible situation of either having our schools close next year ... or submitting and signing a set of principles to their (Federal Government’s) new Act.

“I object to this Act. It’s an Act that will take $210 million out of our schools in the next two years from what we had been originally promised (under the Gillard Government) and what we need.

“But I have to sign up because I can’t see our schools close.”

Gonski 2.0 passed Federal Parliament in June with support from the crossbench, putting in place a single funding model for the nation.

media_camera Federal Education Minister Simon Birmingham. Picture: AAP / Lukas Coch

It replaced a string of separate deals struck under the Gillard-era Gonski plan. Dr Close had argued the Federal Government could use an alternative method to channel money while the dispute was being resolved.

But after receiving advice from Senator Birmingham that there was no viable alternative, Dr Close backed down yesterday.

“The idea that a debate about adequate funding under an existing agreement could lead them to withholding all money from our schools is appalling,” she said.

Senator Birmingham thanked Dr Close for “coming to her senses” but accused her of hiding the “humiliating backdown in vitriol and venom”.

“It was clear from the start the Weatherill Government just wanted to pick a fight with Canberra, but they did it without considering the suffering it would have caused South Australian schools,” Senator Birmingham said.