The Funding of School Education
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The Funding of School Education

Connecting Resources and Learning

This report on the funding of school education constitutes the first in a series of thematic comparative reports bringing together findings from the OECD School Resources Review. School systems have limited financial resources with which to pursue their objectives and the design of school funding policies plays a key role in ensuring that resources are directed to where they can make the most difference. As OECD school systems have become more complex and characterised by multi-level governance, a growing set of actors are increasingly involved in financial decision-making. This requires designing funding allocation models that are aligned to a school system’s governance structures, linking budget planning procedures at different levels to shared educational goals and evaluating the use of school funding to hold decision makers accountable and ensure that resources are used effectively and equitably.

This report was co-funded by the European Commission.

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Distributing school funding You do not have access to this content

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Author(s):
OECD

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This chapter presents an overview of different mechanisms used to allocate funding, whether this is between different levels of education administration or to individual schools. It presents a set of guiding questions that policy makers can follow in designing a funding allocation model that is aligned to the school system’s governance structures. The chapter describes different approaches that countries take in distributing funding for current expenditures and capital expenditures. For current expenditures, the analysis focuses on the design of funding formulas that can be adjusted to support policy objectives aiming for greater efficiency, equity and quality. The chapter presents a range of policy options with key principles that can support the design and implementation of more effective funding mechanisms.

 
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