Schools Funding in Georgia: Changes, Problems and Analysis

Maglakelidze, Shorena and Giorgobiani, Zurab and Shukakidze, Berika (2013) Schools Funding in Georgia: Changes, Problems and Analysis. ERIC - Education Resources Information Center (ED5385). pp. 1-34. ISSN N/A

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There is no fixed rule about how financial resources must be directed to the education sector. It is quite clear that the size of investment in the sector well defines the quality of education students are offered. It is highly important to define the amount of money, which is needed for effective functioning of schools and it is also important to define the system of actions, which will support the functional use of those financial resources. In relation to the above-mentioned, the aim of our study is to analyse general education funding during the post-reform period and based on it to show those problems, which, in spite of the significant rise in funding, arouse as a result of implementing a new system and its further change. Data sets for the research project were taken from the Ministry of Education and Science of Georgia, National Statistics Department of Georgia and directly from public schools. The object of study is all public schools in Georgia, and the period of data gathering is from 2005 till 2011. The rational for conducting the study is due to the necessity: the new funding system for the general education schools drastically changed general education finance model. Although, a number of schools fallen under so called deficit school category in the first year of implementation of the new funding system. Period more than 1300 public schools (out of 2180) had shortages in the budget. In 2011 a new, mixed type of funding model was introduced, schools with up to 160 students were funded using so-called need based approach. Under the new funding model schools with student population from 161 to 599 receive base funds. Even though this approach has worked well in terms of eradicating deficits, a number of essential problems were originated. In the paper, the authors present some conclusions and recommendations on how to solve the existing problems and how to improve the financing model in the future; one of the most important conclusions is that voucher funding scheme couldn't manage to accomplish general education funding goals relating fairness, adequacy and effectiveness. This will only be possible (a recommendation), if expenditure on education as a share of GDP increases by at least 4.5-5% (it was 2.3 in 2011). Shifting to the formula funding is among the recommendations; it will guarantee: balance between the regions, stability, comparability, forecast and it will raise the quality of transparency.

Item Type: Article
Subjects: L Education > L Education (General)
Depositing User: Professor Shorena Maglakelidze
Date Deposited: 03 Dec 2014 07:09
Last Modified: 30 Mar 2015 08:21

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