Documents obtained by the Nine Network reveal that the NSW Treasurer Michael Costa demanded $245 million extra over four years to take part in the scheme. In an effort to hide the additional funding for NSW he proposed that the Federal Government engage in creative accounting by making a payment for capital equipment as opposed to additional funds for the computers in schools roll out.

The secret payment would firstly avoid the State Government embarrassing federal Labor by pulling out of the deal, a key promise by Prime Minister Kevin Rudd and secondly not disclose to other States that NSW had received additional funding.
Earlier this year ChannelNews exclusively reported that the NSW Treasury had instructed the Education department to mark up $158 million of intelligent whiteboard, projector and software purchases by as much as 25% in an effort to recoup money back to the NSW Government.

Federal Treasurer Wayne Swan has dismissed suggestions the Federal government significantly under-estimated the cost of its computers in schools program. However several IT analysts have told ChannelNews that what the Federal Government has missed is the additional broadband and networking costs to tie the classrooms into one network.

According to the Sydney Morning Herald and AAP, Teachers Federation deputy president Bob Lipscombe said Mr Costa's estimated figure of $245 million extra could fall well short of the cost of installing the computers.

"One might well ask why the federal government missed this when it was announcing the policy last year," Mr Lipscombe told ABC Radio.
"We're not even sure whether that ($245 million) would meet the needs of the support around the rollout in New South Wales."