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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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.


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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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Actual expenditure over population aged 6-17 (2002)

0

1,000

2,000

3,000

4,000

5,000

6,000


Ran

ds

per

lear

ner

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Enrolment indexed to population (2002)

0

20

40

60

80

100

120

140


100

= P

op

ula

tio

n a

ged

6-1

7

POS other age

POS age 6-17

Non-POS enrolment


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Per learner expenditure in POS (2002)

0

1,000

2,000

3,000

4,000

5,000

6,000


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


Ran

ds

per

lear

ner Capital infrastructure

Other non-personnel recurrent

Textbooks

Other personnel

Educators


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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


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


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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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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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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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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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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%


Q5

Q4

Q3

Q2

Q1


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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)


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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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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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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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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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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


Sch

oo

l fee

s o

ver

ho

use

ho

ld in

com

e (2

000)

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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


% 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


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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


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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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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


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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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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


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Gross and net classroom shortages

-15,000

-10,000

-5,000

0

5,000

10,000


Shortages

Surpluses

Net shortage


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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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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


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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

A review of the financing, resourcing and costs of education in public schools Briefing

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