OECD (2000)

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PUBLIC FUNDS BY LEVEL OF GOVERNMENT B6 • In many countries, the responsibility for funding primary, secondary, and post-secondary non-tertiary education is largely decentralised. • By contrast, responsibility for funding tertiary education in OECD countries is mainly centralised. • On average across OECD countries, 10 per cent of primary, secondary, and post-secondary nontertiary public funds and 11 per cent of tertiary public funds are spent in private institutions. • Overall, the level at which educational funds are provided does not correspond strongly to the level at which most educational decisions are made. Chart B6.1. Initial sources of public educational funds and final purchasers of educational resources by level of government for primary, secondary and post-secondary non-tertiary education (1997) Chart B6.1. Initial sources of public educational funds and final purchasers of educational resources by level of government for primary, secondary and post-secondary non-tertiary education (1997) Central government Regional government Local government % Initial sources % 100 100 80 60 40 20 0 % Final purchasers % 100 100 80 60 40 20 0 1. Excludes post-secondary non-tertiary education. Countries are ranked in ascending order of the percentage of initial funds from central government. Source: OECD. BEL (Fl.) CHE CAN DEU USA 1 UKM JPN AUS DNK NOR ISL FIN ESP HUN AUT FRA POL CZE ITA MEX KOR NLD IRL GRC NZL BEL (Fl.) CHE CAN DEU USA 1 UKM JPN AUS DNK NOR ISL FIN ESP HUN AUT FRA POL CZE ITA MEX KOR NLD IRL GRC NZL 80 60 40 20 0 80 60 40 20 0 © OECD 2000 104
Public Funds by Level of Government POLICY CONTEXT The level of government that has responsibility for, and control over, the funding of education is often thought to have a strategic advantage in influencing decisions regarding educational governance. An important question in educational policy is, therefore, the extent to which the division of responsibility for educational funding between national, regional and local authorities translates into responsibility for educational decision-making. Important decisions regarding educational funding are made both at the level of government where the funds originate and at the level of government by which they are finally spent or distributed. At the initial level, decisions are made concerning the volume of resources allocated, and any restrictions on how that money can be spent. At the final level, additional restrictions may be attached to the funds, or that level of government may even pay directly for educational resources (by paying teachers’ salaries, for example). Complete centralisation can cause delays in decision-making, and decisions that are far removed from those affected can fail to take proper account of changes in local needs and desired practices. Under complete decentralisation, however, units of government may differ in the level of educational resources which they spend on students, either because of differences in educational priorities or differences in the ability to raise educational funds. Wide variation in educational standards and resources can also lead to inequality of educational opportunity and insufficient attention to long-term national requirements. Although public educational funds are largely spent on the delivery of education in the public sector, they often also support some types of private institutions. This way of sub-contracting education to the private sector is seen in many countries as a cost-effective strategy for providing education. This indicator also directly relates to the role played by government in educational governance by virtue of its potential power over funding. The indicator examines the centralisation of educational funding and its relationship with the centralisation of decision-making about the organisation of instruction, personnel management, planning and school structures, and school resources. This indicator shows the sources of public funds by level of government,... ... the distribution of public expenditure between public and private institutions... … and the relationship between centralisation of public funding and level of decision-making. B6 EVIDENCE AND EXPLANATIONS The way in which responsibility for the funding of education is divided between levels of government differs between the primary/secondary/postsecondary non-tertiary and the tertiary level. Although countries differ considerably in the origin of funding for primary and secondary education, the pattern is quite similar at the tertiary level in most OECD countries. At this level of education, by far the largest proportion of public funds originate from central government. In 18 out of 26 OECD countries, central government is the initial source of more than 85 per cent of public funds for tertiary education (Chart B6.2). On average, central government is also the final source of 76 per cent of all public educational funds in OECD countries (after transfers between levels of government). In fact, in all except six of the OECD countries considered, more than 70 per cent of the final funds come from central government, and in 14 countries the proportion is higher than 90 per cent. With some notable exceptions, responsibility for funding tertiary education in OECD countries is mainly centralised. © OECD 2000 105
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Education at a Glance OECD INDICATO
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Centre for Educational Research and
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TABLE OF CONTENTS Name of the indic
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INTRODUCTION THE OECD EDUCATION IN
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Introduction ratios and teaching ho
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Introduction Despite progress in at
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HIGHLIGHTS PARTICIPATION AND ATTAI
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Highlights The higher the level of
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Financial and human resources inves
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Learning environment and organisati
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Reader’s Guide education. The Glo
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RELATIVE SIZE OF THE SCHOOL-AGE POP
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Relative Size of the School-age Pop
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Relative Size of the School-age Pop
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Educational Attainment of the Adult
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FINANCIAL AND HUMAN RESOURCES INVES
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EDUCATIONAL EXPENDITURE RELATIVE TO
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Educational Expenditure Relative to
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Page 55 and 56: Educational Expenditure Relative to
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Page 71 and 72: PUBLIC SUBSIDIES TO HOUSEHOLDS •
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Page 85 and 86: EDUCATIONAL EXPENDITURE PER STUDENT
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Page 117 and 118: RATIO OF STUDENTS TO TEACHING STAFF
Page 119 and 120: Ratio of Students to Teaching Staff
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Page 123 and 124: C Access to Education, Participatio
Page 125 and 126: C1 Overall Participation in Educati
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C3 Access to and Participation in T
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C4 Completion of and Dropout from T
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C5 Foreign Students in Tertiary Edu
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© OECD 2000 186 Table C5.3. Number
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C6 Students Receiving Additional Re
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C7 Participation in Skill Improveme
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D The Learning Environment and Orga
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D1 Statutory Salaries of Teachers i
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D2 Pre-service Training Requirement
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TEACHING TIME • Teaching time aff
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D3 Teaching Time order to earn a fu
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D3 Teaching Time DEFINITIONS Teach
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D3 Teaching Time Table D3.2. How wo
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TOTAL INTENDED INSTRUCTION TIME FOR
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D4 Total Intended Instruction Time
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D5 Student Absenteeism POLICY CONT
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DECISION-MAKING ABOUT THE CURRICULU
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D6 Decision-making About the Curric
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D6 Decision-making About the Curric
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COMPUTERS IN SCHOOLS AND THEIR USE
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D7 Computers in Schools and their U
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INDIVIDUAL, SOCIAL AND LABOUR MARKE
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LABOUR FORCE PARTICIPATION BY LEVEL
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Labour Force Participation by Level
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Education and Work Among the Youth
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SPECIFIC SITUATION OF THE YOUTH POP
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Specific Situation of the Youth Pop
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Specific Situation of the Youth Pop
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EXPECTED YEARS IN EDUCATION AND WOR
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Expected Years in Education and Wor
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EARNINGS AND EDUCATIONAL ATTAINMENT
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Earnings and Educational Attainment
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Earnings and Educational Attainment
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STUDENT ACHIEVEMENT F International
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F1 Mathematics Achievement of Stude
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F1 Mathematics Achievement of Stude
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DIFFERENCES IN STUDENTS’ ATTITUDE
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F2 Differences in Students’ Attit
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F2 Differences in Students’ Attit
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4th- AND 8th-GRADE STUDENTS’ BELI
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F3 4th- and 8th-grade Students’ B
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ANNEX 1 Table X1.1b. Typical gradua
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ANNEX 1 Table X1.2. School years an
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ANNEX 2 Table X2.2. Basic reference
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Annex 3 SOURCES, METHODS AND TECHNI
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Table 1. Description of ISCED-97 le
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Table 3. Sources Statistical agency
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ANNEX 3 INDICATOR B1: Educational e
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ANNEX 3 Czech Republic: Unpublished
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ANNEX 3 or the financial data, as a
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ANNEX 3 General notes Notes on meth
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ANNEX 3 nc courses, with nc > 3, th
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ANNEX 3 • Calculation of age at t
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ANNEX 3 Notes on specific countries
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ANNEX 3 Sources - University surviv
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ANNEX 3 Ireland: Bonuses refer to e
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ANNEX 3 Table 4. Requirements for p
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ANNEX 3 Korea: The School Curriculu
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ANNEX 3 documents applying only to
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Table 5. Sources Frequency Referenc
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Table 6. Sources Reference period f
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ANNEX 3 Table 8. Mean mathematics a
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GLOSSARY CONTINUING EDUCATIO
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Glossary by the school); boarding f
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Glossary tificate, or diploma after
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Glossary programme at the beginning
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Glossary UNEMPLOYED The unemploye
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Contributors to this Publication Ms
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Contributors to this Publication Mr
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OECD (2000)

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