ASSESSMENT OF FINANCIAL REFORM IN GENERAL EDUCATION

ASSESSMENT OF FINANCIAL REFORM IN GENERAL

EDUCATION

SIZE OF THE SPECIAL TARGETED GRANT FOR FUNDING “STUDENT’S BASKET” IN 2002

10%

90%

54% 46%

State Control Office .

_________________________________________________________________________________________________________________________ASSESSMENT OF THE FINANCIAL REFORM IN GENERAL EDUCATION

2002 special target grant for student’s

basket funding 1,047.4 mln LTL

State budget appropriation

Special target grant assigned for local

governments

Structure of Student’s Basket

• For 2002 the size of student’s basket was set as LTL 1,521

• For 2003 the size of student’s basket was set as LTL 1,538

• For 2004 the size of student’s basket is planned as LTL 1,555

Student’s basket size = LTL 1, 555

State Control Office__________________________________________________________________________________________ .


For school management, pedagogical, social, and

psychological support,

school library LTL 439.8

Teachers’ training LTL 13.5 Training facilities

LTL 6.3

Textbooks LTL 31.5

Teachers’ salaries LTL 1,063.9

RATIO: TOTAL FUNDS FOR STUDENT’S BASKET PLANNED BY THE MINISTRY AND ESTIMATED BY

LOCAL GOVERNMENTS FOLLOWING THE CALCULATION METHODOLOGY

State Control Office__________________________________________________________________________________________


195

195

237

242

248

292

337

344

489

937

- 200 400 600 800 1,000

Anykščių raj.

Kaišiadorių raj.

Šiaulių m.

Lazdijų raj.

Kauno raj.

Klaipėdos m.

Vilniaus raj.

Vilniaus m.

Kauno m.

Kėdainių raj.

222

235

265

272

286

303

306

347

385

412

- 200 400 600

Jurbarko raj.

Elektrėnų

Šakių raj.

Joniškio raj.

Vilniaus raj.

Šilutės raj.

Alytaus raj.

Panevėžio raj.

Šiaulių raj.

Kauno raj.

2002 2003/ 000 LTL / 000 LTL

IN 2002 LOCAL GOVERNMENTS HAVE ALLOCATED THE FOLLOWING FUNDS FOR STUDENT’S BASKET

OF A REFERENCE STUDENT

State Control Office__________________________________________________________________________________________.


LTL 1,521 From LTL 1,523 till LTL 1,592Student’s basket size approved by

legislation

Alytus municipality

Kėdainiai municipality

GENERAL CONCLUSIONS:

• Ministry of Education and Science:

- When preparing students basket funding projects for municipalities the Ministry have envisaged to allocate more funding than it was calculated by municipalities and more than it had to be allocated according to the Methodology for Calculating students Basket Funding and students Units;

- Have not ensured equal conditions for funding and competition of state and municipality general education schools.

• Legal acts do not clearly define criteria for redistribution of students basket funding. This provides for unequal schools funding conditions: separate schools were allocated by their founders up to 55 % less students basket funding than they had to get according to the Methodology for Calculating students Basket Funding and students Units.



GENERAL CONCLUSIONS:

• As a result of implementation of the new procedure for funding general education schools municipalities were allotted more funds for education in municipalities general education schools: in 2002 - 64,7 million Litas more than in 2001, in 2003 – 2,0 million Litas more than in 2002. However this haven’t ensured greater effectiveness of general education schools funding: –Legal acts provide the founders and head teachers of general education schools with possibilities to use the funds that were allocated for education for environment and other educational needs. Student’s basket funding in municipalities in 2002 was used for funding environment and other educational needs in the situation when general education plans approved by the Minister have not been implemented. In average in the country in 2002-2003 school year 18 % of complementary education hours were not used;

–Municipality Councils allotted 47,4 million Litas less student’s basket funding in 2002 than it was approved by the 2002 Law on State Budget and Municipality Budgets Indicators. Municipal general education schools used 49,9 million Litas of student’s basket funding for funding of environment and other educational needs.

–As a result of saving student’s basket funding certain schools in 2002 and 2003 made larger classes in some cases exceeding the maximum allowable number of students in a class.



STUDENT’S BASKET FUNDS ALLOCATED AND USED IN 2002



LTL 1,047.4 mln

LTL 1,047.4 mln

LTL 47.4 mlnLTL 1,000 mln

LTL 49.9 mlnLTL 997.4 mln

LTL 0.1 mlnMinistry of Education and Science

shall monitor whether education plans are fulfilled in case funds are used for

other purposes

General education plans were not met. 18 % of complemen-tary education hours

were not used

In 2002 Special Target Grant for student’s

basket funding

Transfer to local governments

Funds for education approved by municipalities

Schools have used for

education

Unused student’s basket funds

returned to the

budget

Municipalities have allocated for educa-

tional environment and other education needs

Schools have used for educational

environment and other education needs

STUDENT’S BASKET FUNDS: PLANNED, ALLOCATED, AND USED BY THE LOCAL GOVERNMENT OF JONAVA

REGION IN 2002



15.91mln LTL

[1]

16.14mln LTL

[2]

16.18mln LTL

[4]

13.77mln LTL

[5]

16.18mln LTL

[3]

1.59mln LTL

[7]

0.82mln LTL

[6]

1. Student’s basket funds estimated according to the Methodology.2. Student’s basket funds wrongly calculated according to the Methodology when incorrect factors were applied.3. Drafted needs for Student’s basket funding submitted by the Ministry of Education and Science to the Ministry of Finance.4. Special Target Grant assigned to Jonava region for student’s basket funding. All allocated funds have been received.5. Part of Special Target Grant that has been actually used for students’ education.6. Part of Special Target Grant that has been actually used for covering debts of educational institutions.7. Part of Special Target Grant that has been actually used for education environment and other needs funding (salaries of supporting staff, acquisition of fixed assets, other educational needs).

PLANNING ALLOCATION USE

AVERAGE AMOUNT OF FUNDS USED FOR EDUCATION OF A REFERENCE STUDENT IN 2002



1,5341,693

1,463

1,777

-

500

1,000

1,500

2,000

Funds allocated for education of

1 student

Funds used for education of 1 student

Funds allocated for education of 1 reference

student

Funds used for education of 1 reference

student

LTL

GENERAL CONCLUSIONS

•The funding principle „funding follows student“ is not being fully implemented: settlement between municipalities in 2002 was not carried out in time and not in all the cases of transfer of students from one municipality to another as well as between the schools within one municipality.

•The Methodology for Calculating students Basket Funding and students Units does not in all the cases provide for equal funding conditions for the schools with similar number of students.

In our opinion there is a risk that reform objectives might not be fully achieved.





294,357

412,415

319,000

397,000

-

100,000

200,000

300,000

400,000

500,000F

unds

(LT

L) ~30 %

STUDENT’S BASKET FUNDS CALCULATED ACCORDING TO THE METHODOLOGY FOR VILLAGE

AND TOWN SCHOOLS OF THE SAME SIZE

Kaunas reg. Šilenava school (village)

Kazlu Ruda school “Elma” (regional centre)

Student’s basket calculated according to the Methodology (Student’s basket size LTL 1538)

Municipality plan for 2003



A

C

B

0

50.000

100.000

150.000

200.000

250.000

300.000

350.000

0 50 100 150 200 250

B148.335

113422

80 81 106

24 %

RATIO FOR A VILLAGE SCHOOL: STUDENT’S BASKET SIZE / NUMBER OF STUDENTS

(student’s basket size = 1 555 LTL)

Number of pupils in a village primary school

Number of pupils in a village primary school

Student’s basket funds (LTL)

PROPOSALS FOR THE MINISTRY OF EDUCATION AND SCHIENCE

HIGH PRIORITY:

1. Identify clear stages of general education schools funding reform, determine period for the implementation of the aims of reform as well as objectives to achieve the established aims and criteria for evaluation of their implementation.

2. Initiate amendments to legal acts to define use of unused special targeted grant funding for other educational needs when planning and implementing budget only in the case of full implementation of general education plans.




HIGH PRIORITY:

3. Having considered possibilities and necessity submit proposal to the Government concerning development of general education schools funding programme that would be implemented by the Ministry itself. Allocate general education schools students basket funding via this programme.

4. Ensure that calculations of student’s basket funding allocated to municipalities from special targeted grant in the project that is submitted to the Ministry of Finance were carried out following the Methodology for Calculation of students Basket Funding and Units of students. Ensure control of calculations of the number of students units and students basket funding in municipalities. Use students database to carry out calculations of students basket funding.




OTHER:1. Analyse use of student’s basket funding by municipalities as well as the implementation of general education plans to ensure effective and efficient use of student’s basket funding.

2. Achieve establishment of the uniform funding procedure for all the general education schools.

3. Initiate amendments of legislation establishing clear criteria to be followed by founders of general education schools in redistribution of student’s basket funding among schools.4. Work out a procedure for recalculation of student’s basket funding in the beginning of the school year.5. Initiate and together with the Ministry of Finance develop procedures of mutual clearing between local governments and municipal schools in case of student’s transfer to another school.6. Prepare amendments to the Methodology for Calculation of Student’s Basket Funding and Units of students to provide equal funding conditions to schools with the same or similar number of students.



ASSESSMENT OF FINANCIAL REFORM IN GENERAL EDUCATION

Documents

funding students basket

size of students basket

vilniaus raj

iauli raj

iluts raj

alytaus raj

panevio raj

lazdij raj