NSW has no plans to hand over the more than $10 million a year the ACT says it costs to educate students from the state in the territory's public schools.
The Legislative Assembly in May supported a Greens' motion calling on the ACT government to calculate and attempt to recover the costs of educating NSW students in the territory.
But NSW is not interested in a cost-sharing or cost-recovery arrangement with the territory.
The national schooling resource standard means public schools in the territory receive funding for all NSW resident children enrolled in the system, but the ACT covers a portion of the cost of teaching each child.
ACT Education Minister Rachel Stephen-Smith this month wrote to the NSW Education Minister, Prue Car, to seek agreement to calculate the cost and find "appropriate mechanisms for cost recovery".
Ms Car said: "NSW public schools are ready and able to educate every local student should parents choose to enrol them at a public school in their home state."
Ms Stephen-Smith said: "I look forward to continuing to work with the NSW government on education matters, including how we support NSW students who access our public schools."
The Greens' Jo Clay had said it was time to ask NSW to pay their share and ensure the cost of services was fairly shared.
"Today I am presenting a really clear opportunity to right a longstanding wrong; to get an unpaid bill from the largest state government, which is likely to add up to hundreds of millions over years. It is like asking a rich aunt or uncle who has been living rent-free in your house for many years: 'Can you please contribute to the rent?'," Ms Clay said in May.
The government voted to support the motion and Ms Stephen-Smith wrote to Ms Car on September 11, saying territory officials had estimated the cost was nearly $10 million.
"Using data from the August 2025 school census, officials estimate a net cost to the ACT budget of $9.98 million, considering the cost of delivery in ACT public schools, Commonwealth funding provided under the Australian Education Act 2013 and GST allocations," Ms Stephen-Smith wrote.
A review of the ACT's fiscal sustainability completed earlier this year by independent economist Saul Eslake noted the issue of the territory providing services for surrounding areas of NSW.
"In the areas of school and post-secondary education, the ACT provides services to students resident in adjacent areas of New South Wales - but in contrast to health services, the NSW Government does not contribute to the cost of providing these services," Mr Eslake's report said.
"However, the Grants Commission does take these costs into account in assessing the ACT's expenditure 'needs' with regard to school and post-secondary education."
Historical arrangements had meant the ACT government had not previously raised the issue of school funding in cross-border collaboration talks.
