Page 24 - Azerbaijan State University of Economics

THE JOURNAL OF ECONOMIC SCIENCES: THEORY AND PRACTICE, V.78, # 1, 2021, pp. 4-25

CONCLUSION

The presented research demonstrated on the predefined sample of secondary schools
located in the Region of Zlín the impact of two budgeting formulas. The description of
both funding principles provided a deeper comprehension of the weaknesses of the
former budgeting formula that left very little room for a flexible budgeting process at
the regional level. The 2019 education funding reform set the expectations in terms of
fairer and more equal allocation. The objective by which the aim of the reform was
supposed to be met was the newly established allocation Phmax formula that was also
described. The analytical and comparative methods allowed to summarize the effects of
the funding reform funding. For that reason, the funds intended for salaries of
pedagogical staff seemed to be the most relevant items to be analysed and compared. In
order to prosecute the analysis, own calculation based on the student basket formula of
the five-year period 2015-2019 and the retrieved data for 2020 – 2021 were treated.
Consequently, the rise in financial flows over the reference period were analysed and
compared. The comparison allowed to confirm the hypothesis set. The comparative
analyses proved that the changes in the redistribution appeared to be significant and
approved the first hypothesis. The real effects of establishing Phmax calculation formula
demonstrates in higher financial flows in case of smaller schools. The impact of the
changes in budgeting formula is significant as far as the effects of the reform are
concerned. Thanks to the scale of variable components of Phmax formula, it enables to
cover and adjust different components of the salary - both compulsory and extra pay
salary for management, educational advisory services and supplementary pedagogical
services. Another feature important to achieve more precise salary cost is the
consideration of real salary groups of pedagogical staff at each school. Last but not least
the Phmax involves the specific needs of the curriculum in the variable of teaching
lessons per one class.

The calculation Phmax formula takes into account the student, teacher and historical
factors. It was explained that policies aimed at reshaping the organisational structures
and changing institutional habits in school systems as well as the strategic planning
and educational policies are not involved in the formula. Therefore, as per hypothesis
2, the calculation formula itself cannot assure the flexible budgeting. The school
funding policies are closely interlinked with wider developments in school governance
contexts. There must exist wider cooperation between schools – regional and national
level on the design of strategic long-term plans. To choose the right fields of study in
appropriate number of schools and classes to balance the labour market demand in
conformity with overall long term strategic policy seems to be crucial.

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