Gyeongnam Provincial Council Education Committee Calls to Halt Local Education Finance Grant Overhaul

As the Ministry of Economy and Budget and the Ministry of Education moved to abolish the current system, which allocates 20.79% of total domestic tax revenues as the source for local education finance grants, the Education Committee of the Gyeongnam Provincial Council immediately called for a halt to these efforts.

On July 22, the Education Committee held a press conference in the briefing room of the provincial council and demanded, “Immediately halt revisions to local education finance that neglect regional education.”

The committee members stated, “Local education finance grants are not simply a resource allocation system, but are crucial to guaranteeing equal educational opportunities for all students and to narrowing the gap in educational conditions between regions.” They further emphasized, “When revising the system, both fiscal efficiency and factors such as students' right to education and school stability must be considered.”

They continued, “A decrease in the number of students does not mean that school operating costs decrease at the same rate.” They pointed out, “It remains necessary to maintain costs for running schools and classrooms and maintaining basic educational facilities.”

The committee members also noted, “The responsibilities of public education are expanding, including roles such as student transport, after-school care, special education, foundational academic support, student mental health, and school safety.” They added, “Investments are also required for digital education and the improvement of outdated facilities.”

They explained, “Gyeongnam Province is home to both urban and rural areas, mountain and island regions, and has a high number of small schools.” They added, “Fundamental educational services, such as school operation, transportation, school meals, and after-school care, must continue to be provided, even where there are fewer students.”

Members of the Education Committee of the Gyeongnam Provincial Council are urging the government to halt its efforts to reform the local education finance grant system.
[Photo by Se Ryeong Lee]

The local education finance grant automatically allocates 20.79% of total domestic tax revenue and a portion of the education tax to city and provincial education offices, providing funding for primary and secondary education—including operations, personnel expenses for faculty and staff, and facility improvements.

Citing recent declines in the school-age population and the need to enhance fiscal efficiency, the Ministry of Economy and Budget recently proposed to abolish the current automatic allocation system. Instead, it recommended that the total amount of the education finance grants each year be calculated by multiplying the previous year’s grant total by the average of the real growth rate over the past three years, and 40% of the average change in the school-age population, and has forwarded this plan to the Ministry of Education.

The Education Committee of the Provincial Council noted, “If education finances are determined solely based on student numbers, education conditions in rural areas and small schools will become more challenging, and educational gaps between regions could widen.” The committee emphasized, “It is also crucial to recognize that small schools are both learning centers for students and foundations for maintaining local communities.”

The committee continued, “The current system’s instability, in which the grant size fluctuates in accordance with changes in domestic tax revenue, needs to be addressed.” However, the committee clarified, “Mitigating fluctuations in tax revenue must be distinguished from reducing essential resources for regional education.”

They added, “If a new grant calculation method is to be introduced, a prior analysis of the medium- and long-term effects on grant allocations by city and province and on school operations is needed.” The committee also urged that, “mechanisms must be put in place to ensure stability and predictability, so that education finance does not swing drastically from year to year depending on fiscal conditions.”

All 12 committee members from both the ruling and opposition parties gathered on this day.

They called for the following: ▲ immediate suspension of efforts to revise local education finance grants without sufficient consultation with educational stakeholders at the local level; ▲ analysis and public disclosure of the potential effects of the new calculation method on grant payments to local education offices, school operations, and regional educational gaps; and ▲ maintenance of the current statutory distribution rate until the stability and effectiveness of the new method is proven, with actual educational needs reflected in allocations.

The committee stated, “The responsibility for education continues, even if student numbers change,” and stressed, “We will do our utmost to maintain the stability of local education finance so that all students in Gyeongnam enjoy equal educational opportunities regardless of where they live.”

Chairman Jeong Jaeuk expressed concern, saying, “If the revisions go ahead as planned, a reduction in the budget for education in Gyeongnam is inevitable,” and predicted, “The trend toward budget reduction will only accelerate.”

He added, “The committee will closely monitor Gyeongnam Provincial Office of Education’s budgets and funds management, share relevant information, and inform residents about the impact of any changes in grant calculation. We will also collect opinions through public forums and communicate them accordingly.”

This content was produced with the assistance of AI translation services.