International Study on school funding by OECD

The DfE has a new benchmark by which to assess the National Funding formula for Schools. The OECD has just published a thematic review of school funding ‘The Funding of School Education: Connecting Resources and Learning’. http://dx.doi.org/10.1787/9789264276147-en

This is an ambitious report into the issues relating to funding schools across just under 20 of the economies that make up the OECD block. In one sense the issues raised here aren’t new. Funding, and the relationship between funding and the aims of an education system, has always been a matter for debate. Indeed, ever since the governments first became involved in funding education, the key questions around how and to whom have never been far from the surface of political debate. At the most basic level, this is characterised by two of the issues discussed in the OECD report. How much funding is raised locally and where that isn’t sufficient how is it topped up, and secondly, how is the success of any funding model measured and what happens when schools fall short of successful outcomes? This includes the debate about what is meant by equality and equal opportunities. Providing every learner with the same opportunity is not the same as providing them with the same funding as something as simple as the payment of a London salary weighting in England clearly demonstrated well before the notion of Pupil and Service Children Premiums were ever considered. Finally, there is the issue of the governance, where those that raise the money often don’t actually spend it on education. This involves the quality and quantity of data necessary for this task to be effective without overwhelming the system.

The OECD Review notes that as school systems have become more complex and characterised by multi-level governance, a growing set of actors including different levels of the school administration, schools themselves and private providers are involved in school funding in many OECD countries.

The Review notes that :

While on average across OECD countries, central governments continue to provide the majority of financial resources for schools, the responsibility for spending these funds is shared among an increasingly wide range of actors. In many countries, the governance of school funding is characterised by increasing fiscal decentralisation, considerable responsibility of schools over budgetary matters and growing public funding of private school providers. These developments generate new opportunities and challenges for school funding policies and need to be accompanied by adequate institutional arrangements.

The OCED authors consider that to ‘support effective school funding and avoid adverse effects on equity in changing governance contexts, funding reforms should seek to: ensure that roles and responsibilities in decentralised funding systems are well aligned; provide the necessary conditions for effective budget management at the school level; and develop adequate regulatory frameworks for the public funding of private providers.’

It is disappointing that the home nations don’t form part of the review group of nations, although reference to issues and the literature arising from the Uk are to be found throughout the document, if the reader knows where to look., including  Dolton and Marcenaro-Gutierrez 2011 article in the journal Economic Policy, “If you pay peanuts do you get monkeys?

While this Review will be a mine of information to scholars researching the issue of funding, always recognising that some decisions are context bound and that, for instance, more rural economies may have different priorities than more urban and mixed economies, where the needs of the two groups compete with each other.

It is to be hoped that work will be undertaken to consider the differing actions of the four home nations with respect to funding against the issues raised in this review: the outcomes might be very illuminating.

 

 

 

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