A crisis is unfolding at Yipirinya School, an independent Indigenous educational institution in Alice Springs. Up to 20 staff members are facing potential job losses due to a series of unfortunate events, leaving the school community in a state of shock and uncertainty.
The school's statutory manager, Stuart Reid, revealed in a letter to staff that a significant drop in student enrolments has plunged the school into a financial crisis. With almost half the student body gone, from 368 in 2024 to a mere 186 in 2025, the school has lost a substantial amount of government funding, leaving it with a $3.7 million debt.
Mr. Reid explained that the school's usual funding round from the Northern Territory and Commonwealth governments in October was not received, and the previous allocation must now stretch until January 2027. To make matters worse, the school must also repay $3.7 million in overpayments to the federal government, and their funding for 2026 will be reduced to approximately 50% of the 2024 allocation.
"The Australian government has offered a repayment plan for the overpayment, allowing the school to spread the repayment over five years, with the first payment deferred until 2027 to provide time for student numbers to recover," Mr. Reid wrote. He added that the statutory manager is exploring potential assistance from existing government funders and the National Indigenous Australians Agency.
Despite cost-cutting measures, including terminating a lease and reviewing residential units and a proposed childcare center, Mr. Reid stated that the school's financial situation is dire. "The school will not have sufficient funds in 2026 to cover the salaries and superannuation of existing staff while maintaining effective operations," he explained.
As a result, the school has made the difficult decision not to replace staff who have left since September 2025 and will not fill positions where employees have resigned or indicated they will not return in 2026. "The school must significantly reduce its operating costs, and unfortunately, this will lead to a number of redundancies, potentially affecting 15 to 20 positions," Mr. Reid wrote.
Affected staff members will be invited to one-on-one meetings for further consultation and to provide input before any final decisions are made regarding redundancies. In 2023, the school operated with 31 teaching staff and 84 non-teaching staff, serving nearly 300 enrolled students.
Yipirinya School has been under statutory management since July 2025 to address its financial challenges. However, the proposed redundancies have sparked a campaign by staff members to "Save Yipirinya." Aylja Freeborn, a year 3 teacher at the school, expressed her concerns, stating, "The school will not survive if we lose so many staff. We're fighting for Yipirinya's future and recognize the importance of strong, dedicated members.
"We need everyone's support, and we're reaching out to representatives at all levels of government to request that control be returned to the school's board. We're asking for an immediate pause on all redundancies and statutory management decisions, and we need emergency funding to protect jobs and stabilize the school. The government must create a fair and sustainable funding model to support Indigenous education and recognize the unique role Yipirinya plays in closing the gap."
Ms. Freeborn emphasized that the job losses have come as a complete surprise, with some staff already receiving redundancy notices by Wednesday evening. "This will cause outrage in the community and impact not only the school families but the wider Indigenous community as well. People are still processing this news, and we're determined to fight it. We refuse to accept this outcome."
The future of Yipirinya School hangs in the balance as the community awaits further developments and hopes for a resolution that will secure the school's survival and the jobs of its dedicated staff.
