Page 6 - Azerbaijan State University of Economics

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

The resources for individual schools are directly set by the MEYS, the regional
authorities have only a limited power. Ministry sets the new calculation formula
based on a combination of cost and performance financing and declares the funds
provided to each school to be more predictable (MEYS, 2019). The reform is
connected with an increase in the total amount of resources for public education
sector from the state budget. The budget of current expenses for schools and school
facilities established by municipalities and regions for 2020 is of about 12,1 %
higher than that approved for 2019. The first year running on new funding rules is
over and it provides space for evaluating the recent impacts and comparing the
effects. The present paper is supposed to be the first applied research that gives a
comprehensive analysis and comparison of both funding methods on the
homogeneous group of selected secondary schools in the determined region in the
Czech Republic. It presents the real and actual data and own calculations necessary
for further evaluation.

The studies on formula funding of schools (Bischoff, 2009, Levacic, 2008, Levacic
and Downes, 2004, Ross and Levacic, 2000) provide a straightforward
categorisation of the different variables (e.g. pupil number, socio-economic
background of pupils) and coefficients (i.e. the cash amounts which multiply the
variables to determine funding allocation). Policy measures and goals regarding the
school funding, allocation models that are aligned to a school system’s governance
structures, linking budget planning procedures at different levels are described in the
OECD Review (OECD, 2017). Education and Training Monitor 2019 published by
European commission (EU, 2019) includes twenty-eight individual country reports,
main education and training indicators that discus measures to modernise education
provided the principles of effectivity and equity

OBJECTIVES OF THE STUDY

This report gives the comparison of the funding models and compares the funds
received by chosen group of secondary schools based on the former and the newly
established school funding policy in the Czech Republic. It provides a
comprehensive explanation and comparison of the changes in funding the secondary
schools that have taken place. The key assumption is based on the idea of the equity
of salaries for educational staff at the similar types of school. Fair and equal salaries
stand for the equity and stability to provide education on the regional level taking
into account different size and location of the school units. A particular attention
will be paid to funding for teaching costs as this item serve the research for carrying
out the crucial analysis. The outcomes will be compared and analysed consequently.

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