Latvian Ministry of Education and Science (IZM) has prepared a new school financing model. It is given the name “Programme in school”. This new model lowers municipal administrations’ rights to influence the distribution of funding from the education budget.
According to LETA, technically grants for teachers’ wages will still go through municipal administrations. However, this money will no longer be allowed to be distributed in the school network arbitrarily.
Currently, the target grant calculated by the municipality for the remuneration of teachers is distributed to educational institutions in accordance with the procedure for the distribution of the target grant developed and approved by the municipality, taking into account only the lowest salary rate for teachers determined by the state. This, for example, allows smaller schools to be “subsidised” at the expense of larger schools.
The new financing model, on the other hand, provides for granting education institutions with the funding amount set by IZM. A certain degree of autonomy in determining the salary of teachers depending on each teacher’s professional experience, qualifications, results achieved and individual contribution will appear on the school level, according to the project prepared by the ministry.
It is not planned to set a requirement for a specific number of students in a class, but IZM is committed to monitoring “voluntary division of classes into parallel classes” to avoid cases when additional classes are created for the sole purpose of securing additional financing.
The model provides that in 1st-3rd grade a single assistant teacher per 60 students will be financed as long as the number of students in a class exceeds 10. This offer will reinforce the role of the assistant teacher so that children starting out and struggling in school receive timely assistance without slowing down the teaching process, IZM explains.
IZM’s proposed model also provides for additional funding for each education institution equal to 2% of the total calculated salary fund in addition to the bonuses for teachers to ensure individual access for pupils.
In turn, general educational institutions could receive an additional 10% performance funding from the calculated salary fund of teachers for the qualitative implementation of general secondary education programs. The ministry proposes initially allocating performance financing to state gymnasiums with the possibility open for any education institution becoming eligible for this funding in the future if they accomplish specific results.
Additional funding is planned to go towards support activities in special education programmes.
State budget funding for teachers’ remuneration for elementary and secondary education programs will be calculated for the educational institutions that meet certain criteria for the optimal number of students in the educational institution, emphasizes the report.
If an education institution fails to reach quantitative criteria, state budget funding will be allocated based on the actual number of pupils in the 1st-9th grade period proportional to the optimal number of pupils in a class. The remaining funding amount will be provided by municipalities from their budget.
In the 10th-12th grade period state funding will be provided only for the programmes that meet specific optimal pupil number criteria as long as a specific deviation is maintained.
The proposed financing model does not include remuneration for technical staff, education institution maintenance costs, teachers’ career growth costs, as well as financing for teaching materials. This funding will still be provided in accordance with the existing principle separately from grants specifically provided for teachers’ pay.
The model is based on data from various educational institutions in order to identify potential gaps or risks by improving the model accordingly, according to the project report. It is intended to be released for testing to all municipalities so that the model can be improved before the regulatory framework is developed.
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