New policies in the fiscal reform of Estonian general education

Abstract

In order to develop Estonian policies of general education financing we analyze the prevailing regional distribution of general educational revenues and expenditures. Estonian per capita education funds are low and many small schools exist without a sufficient number of pupils. We consider two different basic strategies to improve the situation. The first strategy is an extension of
a reform approach that has been performed since January 2008 that refers to the prevailing educational organization. It refers to improvements in financing schools. A state investment program was developed considering the number of pupils per municipality and special educational needs, but is not based on fair, equal treatment of particular cases. The second improvement strategy is based on the idea of FOCJ. The municipalities form FOCJ that are operating schools and negotiate with central government institutions for school equipment, salaries, loans etc. The theories of FOCJ-establishment, FOCJ-contribution determination and FOCJ-negotiations with central government are demonstrated. The FOCJ can supplement positively the first strategy of reform.