Outgoing Education Minister Chris Carter says he is alarmed by discussion of a review of bulk funding of teachers' salaries.
In its agreement with National, the ACT Party says a working group will be set up to look at the funding and regulation of schools.
ACT leader Rodney Hide says the terms of reference are yet to be set, but adds that it is likely bulk funding will be among the options under consideration.
Mr Carter believes that is a sign that the agreement between National and ACT is not going to be moderate.
Mr Hide says it is no secret his party favours full funding of students, regardless of whether they attend a state or an independent school.
Earlier this year, National said it would not reintroduce bulk funding of teachers salaries, noting that it was looking at other ways to provide flexibility in the education system.
