Labor premieres are backing away from Prime Minister Malcolm Turnbull's proposal to shift funding of public schools from the Federal Government to the States.  The Federal Government claims the deal actually favors states.

The offer that is being made to the states and territories today is one that is far more generous than what is in the budget,' Senator Birmingham - See more at: http://www.skynews.com.au/news/top-stories/2016/04/01/states-shrink-from-school-funding-plan.html#sthash.LZogffZc.dpuf

"The offer that is being made to the states and territories today is one that is far more generous than what is in the budget," Education Minister Simon Birmingham said to the ABC.

But Labor premieres attending today's Council of Australian Government's (COAG) meeting in Canberra are "horrified" over a proposal they see as pitting states against states.  

Victorian Premier Daniel Andrews said it was concerning the prime minister was walking away from funding public schools after tearing up deals that had been signed with the states. - See more at: http://www.skynews.com.au/news/top-stories/2016/04/01/states-shrink-from-school-funding-plan.html#sthash.LZogffZc.dpuf

"I'm horrified, I am absolutely horrified.  The Australian public, and I know Queenslanders, expect the commonwealth have a key part and be a key partner when it comes to issues such as education and health," said Queensland Premier Annastacia Palaszczuk.  "If you're talking about ideas and innovation, it must be across all of our school education system in this nation, and it's simply unacceptable to have a divide - which is what the Prime Minister is talking about - between different schools in our country."

Of the other premieres, Victoria's Daniel Andrews was concerned the prime minister was walking away from funding public schools after tearing up deals that had been signed with the states.  Tasmania's Will Hodgman says the PM's idea would initiate a "race to the bottom" that would leave his state flailing.  West Australia's Colin Barnett has been somewhat supportive, while NSW's Mike Baird is waiting for the results of the COAG meeting.

But the Federal Opposition is incensed.

"Mr Turnbull has come up with the most outlandish idea in the history of Australian school education," said Labor leader Bill Shorten.  "The parents of Australia will not fall for this."