The Australian Greens say Prime Minister Turnbull has now put public school funding in the too-hard-basket, along with health

"Instead of having the courage to raise the revenue we need to pay for quality schools and hospitals, the Liberals are handing all their responsibilities over to the states," said Greens Leader Richard Di Natale.

"The suggestion that the federal government may not provide any funding for public schools is an extraordinary abandonment of one of the government's key responsibilities.

Despite limited terms of reference, the COAG reform council's findings on its first ever report on capital cities has made the urgent need for action clear, the Greens said today.

Greens transport and sustainable cities spokesperson Senator Scott Ludlam said state and federal governments are "on notice" to deal with the planning crises in Australia's capital cities.