$35 million will be taken out of vital government funding in schools for literacy  and numeracy, after NSW  failed to meet government targets in NAPLAN testing.

A national report released today shows NSW schools in the National Partnership On Literacy and Numeracy program reached less than half of the expected standards.

According to the report, certain NSW schools are falling behind in crucial areas of basic learning, with some schools completely failing to meet four of the 12 performance targets.

These poor results across the state mean that there is a prospect for NSW to receive a mere $12.9 million in federal funding out of a possible $48.4 million.

Federal School Education Minister Peter Garrett told NewsLimited that $147.3 million of the $211.5 million available in the reward funding was allocated nation-wide this year.

“Around half a million students across the country are benefitting from funding provided through this partnership,” he said.

The report has also found that the standard of literacy and numeracy for Year 3 and Year 5 students has declined from 2009 to 2011 by 1%, and the number of Aboriginal students at or above this minimum standard declined by half a percentage point.

Mr Garrett said unallocated funds would be directed toward boosting Aboriginal and Torres Strait Islander education in a separate initiative.

NSW schools now have their challenges clearly presented to them, with the obtained results acting as a cry out for improvement.

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