Educational Finance in Thailand - UNESCO Bangkok

Appendix 7
Finance Allocation Methods
Two different approaches to an allocation method are presented here. They are based on
two different mechanisms: (1) weighting the count of individual students to reflect
variations in the desired level of subsidy for each student type, and (2) weighting the
amount of subsidy to which a school is entitled based on a school-level measure of need.
These approaches could be considered as alternative methods or as complementary
approaches to be applied to fine tune an allocation mechanism to meet policy objectives.
Student Weighting Scheme
This approach employs a system of weights assigned to the number of different
types of students in different programs. The weights determine a weighted student count
as the basis for allocating per-pupil subsidies. The total subsidy to which a school is
entitled would then be determined by multiplying the standard per-pupil subsidy times the
weighted count of students. For example, primary school students in regular programs
could be weighted at 1.0, and handicapped students in the same programs could be
weighted at 2.0. A school with 100 regular primary students and 10 handicapped primary
students would then have a weighted student count of 120: (100 x 1.0) + (10 x 2.0)=120.
The school’s subsidy would then be equal to 120 times the subsidy amount.
In such a scheme, establishing of the weights for different types of students and
programs becomes the focus of allocation policy decision making. The weighting system
can allow for many fine-grained distinctions to be made among students and programs, so
as to target funding according to equity and educational program concerns. For example,
The weighting could provide for different allocations by both type of student and type of
program, as shown in the table below (example weights only for illustration only):
Weights for Each Student Type
Program Level Regular Handicapped Gifted
Pre-primary .75 1.25 .75
Primary 1.0 2.0 1.2
Lower Secondary 1.25 2.0 1.4
Upper Secondary 1.40 2.25 1.5
Vocational Secondary 1.50 2.25 1.5
School-Level Subsidy Scheme
To allocate according to the school’s level of need, or ability to raise revenues
(rather than student-level need calculations), the allocation formula requires a measure of
fiscal ability and educational need. The typical approach to this kind of allocation
employs what is usually referred to as a “percentage equalizing formula.” In such a
formula, the subsidizing level of government (presumably the Central Government in
Thailand), shares in the total expenditure per pupil by a percentage that varies with the
wealth or fiscal capacity of the local authority. Wealthy authorities receive a
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