Small schools in Latvia face funding cuts as government changes rules

In the future, the state will fully fund teachers’ salaries only for schools that meet the criteria for student numbers and class organisation set by the Ministry of Education and Science, the government decided on Tuesday.

The new regulation provides that 100% state funding will be available to educational institutions that ensure a specified number of students in classes and class groups, and that meet requirements regarding school size and structure, taking into account their location.

The regulation stipulates that classes must have between 10 and 20 students. Criteria will vary depending on the territory — requirements are higher in cities, while smaller class sizes are allowed in rural and sparsely populated areas. Schools are classified according to the so-called “degurba” system, which divides territories from large cities to sparsely populated rural areas. The more densely populated the area, the higher the requirements for student numbers in classes and groups, while in rural areas thresholds are lower, taking into account lower population density and longer distances.

The classification of municipalities by level of urbanisation will be reviewed every three years, based on changes in population and settlement patterns, to ensure that school requirements reflect real conditions.

At the same time, several adjustments have been made to the classification.

Jēkabpils, Jūrmala, and several areas around Riga — Ādaži, Mārupe, and Ķekava municipalities — have been reclassified as more densely populated areas. Meanwhile, Auru, Kurmāle, and Ģibuļi parishes have been moved into the rural category due to the small number of schools. Border area classifications have also been уточпified, including only those territories defined in legal acts, excluding national cities and municipal administrative centres.

In cases where schools do not meet the established criteria, state funding may be reduced or applied proportionally.

In such cases, greater responsibility for ensuring teachers’ salaries will fall on municipalities, which will have to decide on school network reorganisation or allocate additional funding.

The Ministry explains that the new regulation is based on both equality and differentiated approach principles.

Applying uniform rules to all schools regardless of circumstances may lead to unequal outcomes, therefore exceptions are provided in certain cases.

The regulation allows deviations from the optimal number of students. In primary school (grades 1–6), a deviation of up to 25% is permitted, while in upper grades (7–12), up to 10%. These deviations will not apply to schools that already operate at the lowest possible threshold — such as those located at the European Union’s external border, schools with high accessibility risks, and institutions where at least half of students are enrolled in special education programmes.

At the same time, the regulation provides for several exceptions. Full state funding may also be granted to schools that do not meet general criteria due to objective circumstances. This applies to schools with high accessibility risk, where travel time to the nearest comparable school exceeds 30 minutes. Such schools may have lower minimum student thresholds and still retain full funding.

In some cases, state gymnasiums may also be classified as schools with high accessibility risk. This status is assessed based on location, distance to other secondary education institutions, and student mobility.

At the same time,

this status does not affect quality requirements — schools must still meet the standards of a state gymnasium.

Additionally, seven schools have been classified as institutions with high accessibility risk due to their importance in preserving cultural heritage, strengthening regional identity, social cohesion, and limited alternatives for education.

Special conditions are provided for schools in border areas. At the primary level, the lowest possible student numbers are allowed, while at the secondary level these schools must ensure at least 30 or 45 students per class group, depending on the region.

Differentiated conditions also apply to the only secondary school in a municipality, schools with a large number of students with special needs, alternative education institutions, distance learning schools, and schools established under international agreements. Quantitative criteria for these institutions may be adjusted based on their specific role in the education system.

Full funding may also be provided where a school cannot increase student numbers due to objective reasons,

such as limited infrastructure or capacity. Flexibility is also provided where reorganisation is not possible due to poor road infrastructure or other objective factors.

A transition period of up to three years is also established for schools undergoing reorganisation. During this time, the state will continue to provide full funding to ensure continuity of education.

If the accreditation commission of the State Education Quality Service has recommended that a school should not be reorganised, this may serve as a basis for a more flexible application of funding criteria. At the same time, this does not limit municipalities’ rights to decide on reorganisation but ensures that decisions are based on professional and independent evaluation.

The “Programme in School” model has been partially introduced since the 1st of September, 2025, and is planned to be fully implemented from the 1st of September this year. An additional 45 million euros is allocated for its implementation in 2026, with even higher funding needed in subsequent years.

The teacher remuneration reform was announced already in 2023 to address inequality, as salary increases under the “money follows the student” model depend on the number of students in municipalities.

Read also: Five psychiatric hospitals in Latvia to be merged into a single centre

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