A review of the financing, resourcing and costs of education in public schools Briefing
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A review of the financing, resourcing and costs of education
in public schools
BriefingEducation Portfolio Committee
4 March 2003
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The task of improving quality, and equality of quality, in education is perhaps the most important development task confronting our nation.
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The approach Developments since 1994─Access─Funding─Equity
10 focus areas─Financial transfers: from the national level to the school─Achieving optimal educator utilisation and development─Translating school allocations to non-personnel resources─Influencing the prices of education inputs─Preserving physical assets in schools─Respecting basic human rights─School nutrition─National Norms and Standards for School Funding
─School allocations─School fees and other private inputs
─Physical infrastructure─Translating school resources to learner performance
Re
co
mm
end
atio
ns
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> Developments since 1994
Improved access to schools
MTEF expenditure improvements in real terms
Average annual growth of 1.3% currently
More equity
Inter-provincial equity better by 60%
Infrastructure, equipment remain major causes of inequity
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> Developments since 1994
Age-specific enrolment rates 1999-2001
70%
75%
80%
85%
90%
95%
100%
7 8 9 10 11 12 13 14 15 16 17 18
Age
% o
f p
op
ula
tio
n
1999
2001
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Real trend in global provincial education expenditure (2001 rands)
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500
5,000
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004
Per
cap
ita
exp
end
itu
re
42,000
44,000
46,000
48,000
50,000
52,000
54,000
Per child/youth exp. Per learner exp. Total exp.
> Developments since 1994
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> Developments since 1994
Total pro-poor transfer of non-personnel recurrent funds via the Resource Targeting List (2001 rands)
0.0
10.0
20.0
30.0
40.0
50.0
60.0
70.0
80.0
EC FS GT KN MP NC NP NW WC
Mill
ion
ran
ds
2000
2001
2002
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> Financial transfers: national to school Equity in theory, regressive funding in practice
Welfare pressures in poor provinces
Over 20% difference in per learner funding in POS
Educators crowd out all else in poor provinces
Many budgeting decisions not easily explained
National budget reform process
An education budget monitoring and support office Improved budget analysis capacity An education budget monitoring and support office to
provide valuable support to PEDs Monitoring of pro-poor funding Involvement in ESF review process
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> Financial transfers: national to school
Provincial education over provincial total (2002)
25%
27%
29%
31%
33%
35%
37%
39%
41%
43%
45%
EC FS GP KN LP MP NC NW WC
Ed
uca
tio
n a
s a
pro
po
rtio
n o
f to
tal
Equity level
Actual
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> Financial transfers: national to school
Actual expenditure over population aged 6-17 (2002)
0
1,000
2,000
3,000
4,000
5,000
6,000
EC FS GP KN LP MP NC NW WC
Ran
ds
per
lear
ner
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Enrolment indexed to population (2002)
0
20
40
60
80
100
120
140
EC FS GP KN LP MP NC NW WC
100
= P
op
ula
tio
n a
ged
6-1
7
POS other age
POS age 6-17
Non-POS enrolment
> Financial transfers: national to school
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> Financial transfers: national to school
Per learner expenditure in POS (2002)
0
1,000
2,000
3,000
4,000
5,000
6,000
EC FS GP KN LP MP NC NW WC
Ran
ds
per
lear
ner
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POS expenditure per learner by type of input (2002)
2,500
3,000
3,500
4,000
4,500
5,000
EC FS GP KN LP MP NC NW WC
Ran
ds
per
lear
ner Capital infrastructure
Other non-personnel recurrent
Textbooks
Other personnel
Educators
> Financial transfers: national to school
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> Financial transfers: national to school
Non-personnel recurrent expenditure per learner and allocations across quintiles in 2002
0
50
100
150
200
250
300
350
400
450
500
EC FS GT KN MP NC NP NW WC
Tot non-pers recurr
1
2
3
4
5
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> Optimal educator utilisation
Utilisation issues
Average L:E vs maximum L:E
Small schools
Mobility of educators
Need to enhance quality of educators
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Strengthening of current initiatives to develop teacher capacity and reward professional excellence Whole range of quality issues, from curriculum
knowledge to values and morale. Rewards for educators who develop their own
professional capacity
> Optimal educator utilisation
More efficient and practical teacher utilisation techniques Discussions with educator organisations to arrive at
practical teacher utilisation study School timetabling support Examination of mix of technology in the classroom Assessment of the L:E ratio Better administrative support in schools
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Percentage of small schools and L:E ratios per province
20
22
24
26
28
30
32
34
36
38
40
EC FS GP KN LP MP NC NW WC SA
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
% small schools
Overall L:E
Small school L:E
Large school L:E
> Optimal educator utilisation
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> Translating school allocations to school resources
Ultimately, all schools to become Section 21 schools
Good ‘resourcing agency’ service will always be needed by schools
Saving allocations for capital investment
Need to control runaway electricity/water consumption
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> Translating school allocations to school resources
Organisational and systems improvements to support effective procurement of goods and services for schools Improved services to non-section 21 schools and
service delivery assessments by the schools themselves.
Roll-out of best practice across the country to improve school level financial and resource management.
Study into support needed by increasing number of section 21 schools in the longer term.
Solutions to the current non-section 21 saving problem.
Tackling of excessive water and electricity consumption.
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> Influencing the prices of inputs
Procurement services to offer economy of scale benefits to all
Question around cost to schools of Government procurement regulations
Textbooks
An insufficiently competitive market
Expensive materials
Poorly coordinated ordering
Uniforms – local monopolies and expensive tastes
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> Influencing the prices of inputs
Negotiations and systems to lower the prices of school inputs Open contracts negotiated by Government on behalf
of schools. Securing of preferential rates from utility and telephone
companies. Provisions for non-section 21 schools to procure at
market prices.
Measures to lower the price of textbooks Research into the efficiency of the textbook market. Better lines of communication with the textbook
industry. Greater coordination of the textbook ordering process
to produce economies of scale.
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> Influencing the prices of inputs
Measures to reduce the cost of uniforms Elimination of sole supplier markets through policy on
uniform specifications. Engagement with clothing industry. Long range fundamental change.
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> Preserving physical assets in schools
Asset registers in schools
Textbook retrieval
Poor systems cause enormous financial losses
School-level and system-level challenges
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> Preserving physical assets in schools
Improved asset management systems in schools Better accounting of physical assets. Storage facilities and management improvements for
the preservation of assets.
Systems for higher textbook retrieval rates in schools Better measurement and monitoring of textbook
retrieval rates. Schools-based capacity to retrieve books and system-
wide tracking of which learners have received books from the state.
Integration of retrieval targets into general school management processes.
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> Respecting basic human rights
Worrying indications of disregard by employees for rights of poor
Attitude change a prerequisite to systems/policy change
Campaigns, education and prosecution to reduce the marginalisation of poor learners A campaign to counteract the marginalisation of the
poor by bureaucrats and teachers. Stronger disciplinary action against transgressors.
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Illegal marginalisation of the poor by quintile
0% 5% 10% 15% 20% 25%
publicise names of learners w ho did not pay?
prohibit learners to attend school?
not issue books to learners?
w ithhold reports from the learner?
% of schools
1
2
3
4
5
All
> Respecting basic human rights
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> School nutrition
Major system failure during 2002
Need for DoE to take more proactive stand – not just a health issue
School lunches for all poor GET learners Strategies to counter organisational failure in the roll-
out of feeding schemes. Better research on the value added by school feeding
schemes. School involvement through e.g. vegetable gardens. Minimum goal of ensuring that all poor GET learners
receive a balanced meal on each school day.
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> School nutrition
% of schools with feeding schemes
0%
10%
20%
30%
40%
50%
60%
70%
80%
Q1 Q2 Q3 Q4 Q5
% o
f le
arn
ers
% w ith feeding scheme
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> Norms & Standards: allocations
Clearly no adequacy in e.g. R50 per learner, yet more research needed
Production functions, costed minimum package
Provinces differ in their poverty profiles
National resource targeting list approach proposed
Phased in funding via increases to baseline preferable
Poor learners in rich schools – no easy, equitable solutions
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> Norms & Standards: allocations
Completion of specific education resourcing studies Formulation of a costed minimum package required by
learners, to be used as a benchmark for planning. Research into optimality of the pro-poor distribution
curves currently used. Extensive research into education production functions
in South Africa.
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> Norms & Standards: allocations
A national resource targeting list approach to ensure adequate non-personnel recurrent funding in all poor schools Greater clarity around what items are procured using
the school allocation, and what items are procured through other means.
Better understanding of where allocations are inadequate.
Investigations into a national poverty targeting approach that would treat equally poor learners across the country the same in terms of non-personnel recurrent inputs.
Possible amendments to the current method of determining school poverty.
Clearer policy statement on poor learners attending non-poor schools.
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National quintiles within provinces
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
EC FS GP KN LP MP NC NW WC
Q5
Q4
Q3
Q2
Q1
> Norms & Standards: allocations
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> Norms & Standards: allocations
Q1 Q2 Q4 Q3 Q5 0
600
800 P
ublic
non
-per
sonn
el f
und
ing 0
600
Fees that can b
e paid
Public funding Private funding
Redistribution
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Average income of households
0
50,000
100,000
150,000
200,000
250,000
300,000
350,000
400,000
1 11 21 31 41 51 61 71 81 91
Percentiles all households
An
nu
al h
ou
seh
old
inco
me
(200
0)
> Norms & Standards: allocations
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> Norms & Standards: private inputs
Official fees below R100, except in Q5
Large variation within Q5 – personal choice
85% of parents find fees ‘reasonable’ – we need to focus on margins
‘Hidden fees’ conservatively at 25% of formal fees
6% of learners spend >1 hour getting to school
Collaboration with DSD on exemptions criteria necessary
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> Norms & Standards: private inputs
More stringently monitored and better informed fee-setting processes Improved monitoring of fees charged in public schools. Steps against demands for ‘hidden’ fees. Broader participation of parents in fee-setting
processes. More stringent enforcement of procedures laid down
by policy. Adequate public resourcing to eliminate need for fees
in poor schools.
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> Norms & Standards: private inputs
Fairer and more effective exemptions processes that are fully integrated into Government’s poverty alleviation programmes Possible alignment of fee eligibility with eligibility for
welfare grants. Removal of fee, and hence exemptions pressures in
poor schools.
Transport assistance to poor learners Investigations into alternatives to school bus approach. Greater capacity of households to afford transport
costs due to alleviation of pressures in other areas.
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> Norms & Standards: private inputs
Average per learner fees according to income
0
500
1,000
1,500
2,000
2,500
3,000
1 11 21 31 41 51 61 71 81 91
Percentiles of households
An
nu
al s
cho
ol f
ee (
2000
)
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> Norms & Standards: private inputs
Percentage of household income going to fees with households ranked from poorest to richest
0.0%
0.5%
1.0%
1.5%
2.0%
2.5%
3.0%
3.5%
4.0%
4.5%
5.0%
1 11 21 31 41 51 61 71 81 91
Percentiles of households
Sch
oo
l fee
s o
ver
ho
use
ho
ld in
com
e (2
000)
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> Norms & Standards: private inputs
Percentage of households qualifying for exemptions with households ranked from poorest to richest
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
40.0%
45.0%
1 11 21 31 41 51 61 71 81 91
Percentiles of households
% o
f h
ou
seh
old
s q
ual
ifyi
ng
fo
r ex
emp
tio
ns
Partial exemption Full exemption
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Fee payment rates in schools
0
50
100
150
200
250
300
350
400
450
500
10% 30% 50% 70% 90%
Payment rate
Nu
mb
er o
f sc
ho
ols
Q1
Q5
All
> Norms & Standards: private inputs
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Parents who believe fees are reasonable
0
50
100
150
200
250
300
350
400
450
500
10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
% believing fees are reasonable
Nu
mb
er o
f sc
ho
ols
Q1
Q5
All
> Norms & Standards: private inputs
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> Norms & Standards: private inputs
Private per learner annual expenditure by learner quintile (2000)
0
20
40
60
80
100
120
140
160
180
200
1 2 3 4 5 All
Ran
ds
per
lear
ner
Fees
Private tuition
Excursions
Boarding
Textbooks
Stationery
926
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> Norms & Standards: private inputs
Learners by transport mode and time
0% 20% 40% 60% 80% 100%
Walk
Bicycle
Public transport
Parent's car
Other
% of learners
<15 mins.
15-30 mins.
30-45 mins.
45-60 mins.
>60 mins.
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Exemptions and legal processes by quintile
0% 10% 20% 30% 40% 50% 60% 70% 80%
institute legal action against the parents?
give partial exemption from payment?
give full exemption from payment?
give partial/full exemption from payment?
% of schools
1
2
3
4
5
All
> Norms & Standards: private inputs
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> Physical infrastructure
Pockets of especial deprivation, e.g. ex-Transkei
Migration results in absolute classroom shortages greater than net classroom shortages
Infrastructure planning highly complex – inadequate capacity
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> Physical infrastructure
The finalisation of a comprehensive capital investment and maintenance policy Policy and tools to assist physical planning at the local
level. Holistic approach to school infrastructure, migration,
admissions and school quality.
More strategic prioritisation from the national level of schools infrastructure development Changes to measurement of backlogs. Comprehensive national plan informed by better
information about local need, and an improved capital investment framework.
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C
umul
ativ
e Pr
obab
ilit
y
newind0 .1 .2 .3 .4 .5 .6 .7 .8 .9 1
.000606
1 12 3456 78
Eastern Cape, probably Transkei
> Physical infrastructure
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Gross and net classroom shortages
-15,000
-10,000
-5,000
0
5,000
10,000
EC FS GP KN LP MP NC NW WC
Shortages
Surpluses
Net shortage
> Physical infrastructure
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> Translating inputs to outputs
Current systems to monitor output: Matric, emerging GETC, Systemic Evaluation, SACMEQ, WSE
Possible to integrate the data to produce indicators at provincial and ‘district’ level
Careful dissemination of information could lead to greater public and institutional awareness of importance of outputs and relative efficiency of schooling
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> Translating inputs to outputs
An integrated performance monitoring system that is accessible to the public Integration of data from current performance
monitoring mechanisms. More intensive research into feasible targets for
outputs according to geographical area and poverty quintile.
Publication of average and normative performance scores down to the level of the district/circuit in order to improve accountability in the system.
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Learner peformance and education expenditure
400
420
440
460
480
500
520
540
560
580
600
BOT KEN LES MAU MOZ NAM RSA SEY SWA TAN UGA
SA
CM
EQ
sco
res
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
7.0%
8.0%
9.0%
10.0%
Pupil reading Pupil mathematics Educ exp/GNP Educ exp/GNP adjusted w ith GER
> Translating inputs to outputs
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> Summary of recommendations
• An education budget monitoring and support office• More efficient and practical educator utilisation techniques• Strengthening of current initiatives to develop educator
capacity and reward professional excellence• Organisational and systems improvements to support
effective procurement of goods and services for schools• Negotiations and systems to lower the prices of school inputs• Measures to lower the price of textbooks• Measures to reduce the cost of school uniforms• Improved asset management systems in schools• Systems for higher textbook retrieval rates in schools• Campaigns, education, and prosecution to reduce the
marginalisation of poor learners• School lunches for all poor GET learners• Completion of specific education resourcing studies
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> Summary of recommendations
• A national resource targeting list approach to ensure adequate non-personnel recurrent funding in all poor schools
• More stringently monitored and better informed fee-setting processes
• Fairer and more effective exemptions processes that are fully integrated into Government’s poverty alleviation programmes
• Transport assistance to poor learners• The finalisation of a comprehensive capital investment and
maintenance policy• A more strategic prioritisation from the national level of
schools infrastructure development• An integrated performance monitoring system that is
accessible to the public