School Community Integration Pilot Project - Department of Education

A comparative analysis of education expenditure in Eastern Cape schools – November 2004
APPENDIX 1
COMPARATIVE ANALYSIS OF EASTERN CAPE EDUCATION
SPENDING IN SCHOOLS
1. BACKGROUND
Since 2000/01 the Eastern Cape Department of Education has received
progressively increasing budgets. A rapid review of education spending completed in
March 2004 found that the Department has been able to devote increased funding to
school education. The Department now wishes to conduct a detailed analysis of
education spending in schools examining the main factors driving and affecting
education spending, especially personnel expenditure. It is proposed that a
consultant is contracted through the Imbewu 2 programme to conduct this analysis.
2. TASKS
Different factors affect education expenditure in schools at national and provincial
level and within the Eastern Cape province itself. Analysis of the trends and the
principal factors driving and affecting expenditure is needed. Analysis should be
undertaken for the last three completed budget years for which final expenditure is
available (2001/02 to 2003/04) and the current MTEF period (2004/05 to 2006/07),
data permitting.
2.1. National and provincial funding for education
National government allocates funding to provinces based on an Equitable Share
Formula (ESF). The education component of this formula is based upon the school
age population and the proportion of that age group in school. Funding for education
is however not solely determined by national allocations. Provinces have their own
authority to determine budget allocations between different departments and, to a
greater or lesser extent, their own sources of funding for allocation.
The National Department of Education and National Treasury conduct ongoing
analysis of provincial education expenditure. Drawing on this material and analysis
by non-governmental organisations, a brief review should be conducted of trends in
the funding allocated to education, to school education and in the school population
and enrolment cost drivers.
2.2. Factors driving school education expenditure in the Eastern Cape
The principal task within the study is however the analysis of the main drivers of
expenditure on school education within the Eastern Cape. As 88% of education
expenditure was on personnel in 2003/04, expenditure on teachers and other staff in
schools is a major focus. Analysis is required of the main elements within
expenditure on school education in the Eastern Cape, especially those most crucial
for school education. These elements are Personnel, Infrastructure, Learning
Materials and Norms and Standards funding. The impact of expenditure on
personnel backlogs on the available budget must also be analysed. Data at this level
will only be available for the Eastern Cape and comparison with a small number of
provinces, probably Western Cape. The following factors require detailed analysis.
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