Financing of general secondary education institutions: current state, problems and prospects

Abstract

The article considers the current state of financing of general secondary education institutions in Ukraine, identifying problems in this area and outlining ways to solve them. The author describes the sources of financing of public secondary education institutions, including funds from the State and local budgets, revenues from the provision of paid educational and other services, charitable assistance, grants, and other sources not prohibited by law. The author examines the procedure for the formation and distribution of the educational subvention from the State budget to local budgets and analyses the dynamics of the educational subvention for the period 2018-2022. It is concluded that two key principles - budget co-financing and subsidiarity - are used in forming the mechanism for financing the activities of general secondary education institutions. The author identifies the problems of territorial communities in the funding of the activities of secondary education institutions, including the insufficient financial capacity of some communities; incompetence of managers and lack of experience; availability of schools with low enrolment; energy-intensive school infrastructure; high cost of providing secondary education in rural areas. The author examines the management functions of boards of trustees of general secondary education institutions, emphasizing the importance of such a function as facilitating the attraction of additional funding sources. The advantages and risks of introducing financial autonomy in general secondary education institutions are characterized. Among the benefits are the possibility of independent management of funds and property, involvement of stakeholders in the institution's financial management, the right of the institution to establish allowances and bonuses for employees, and scholarships for students. The risks include the unwillingness of institutional managers to manage finances, the likelihood of weakening financial discipline, and reducing the efficiency of using funds. The author concludes that it is premature to introduce the financial autonomy of general secondary education institutions and that taking stock of the legal framework for recognizing educational institutions as full-fledged subjects of civil law is necessary. Keywords: financing, institutions of general secondary education, educational subvention, subsidiarity, financial autonomy, boards of trustees.