Transcript Chernivsti Conference on Higher Education Reform/Funding of

V4 – Ukraine: Chernivsti Conference on
Higher Education Reform/Funding of Higher
Education and Science
Some Hungarian reforms in funding Initial Vocational
Education and Training (IVET)
13. October 2015
Chernivsti
Three pillars of funding IVET
Basic challenges in Hungary:
A.) How to restore the prestige of manual skilled work among youngsters
B.) Accordingly how to better respond the labour market requirements (employers)
From financial side as a tool:
I. Budget
II. Vocational Contribution (as tax) of companies
III. Vocational School Scholarship
IV. Other financial supports and grants (national or EU)
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I. Budget funding:
Hungarian budget spends 4.7% of GDP on education
(OECD data)
Within the educational budget, proportions are:
1. Kindergarten: 16%
2. Primary and lower secondary level schools, 8 grades: 35%
3. Secondary level: 19%
4. Higher education: 21%
5. Other educational areas (e.g. adult education and training): 3%
6. Other costs (maintenance, constructing work): 6%
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Ratio of IVET costs on secondary level:
Ratio of IVET budget costs on secondary level (within the
19%):
• Vocational school: 5%
• Vocational secondary school (4 grades, giving matricula):
7%
• Grammar school (gymnasium): 7%
Total share of IVET costs on secondary level: 12%, but
reducing the general learning subject content, it can be less.
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Budgetary support of adult IVET schooling
• If educaton is delivered in daytime programmes,
budgetary support is: 100%
• If education is delivered in evening courses,
budgetary support is: 60%
• If education is delivered in correspondence programmes: 20%
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Average monthly salaries of teachers and instructors in vocational
schools and vocational secondary schools, gross amounts with 27% social
contribution: EUR 1.365 / month
Direction of reguest for money transfer of salaries from the
Treasury: VET Centre (School)National Office of VET and ALE
(Novetal) State Treasury.
Direction of money transfer of salaries: TreasuryBank account of
the teacher/instructor.
Direction of other transfers (e.g. maintenance): TreasuryVET Centre
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•
If practical training shop is within the school and maintained by the school, the
funding arrives from the budget.
• Theoretical training is always funded from the state budget.
•
If a part of the practical training is provided at a company under a „co-operation
agreement „ between the school and the company, the school pays, but funding
comes from the budget, too.
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II. Vocational Contribution (as tax) of companies:
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Law on the vocational contribution and on supporting the development of
vocational training, Nr. CLV of 2011 (more times modified)
Vocational contribution is 1.5% after the previous year’s gross salary amount at
the company
Capable and willing companies are authorised to conclude training contract with
students (apprentice scheme) and accordingly reduce their relevant tax
contribution, even up to 100% or plus…
Hungarian government and Chambers are very keen, highly supportive on this
scheme….long term interests of companies and national economy.
o, keeping apprentices is (theoretically) a general economic interest.
Companies not interested, remain net tax-payers
This is also an indirect budget funding
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Amounts of the monetary allotment provided to students if they have training
contract with a company
If the time spent at
the company…
As percentage of the
15% of minimal wage
Factor
80%
1.3
70%
1.2
60%
1.1
50%
0.9
40%
0.8
20%
0.7
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III. Vocational School Scholarship (nor for vocational secondary schools)
Merit based scholarship for students (apprentices) in VET schools in order to subsidize students
participation in full daytime learning/training.
Learning result of the previous
semester
Amount /month
4.51 – 5.00
EUR 96
4.01 – 4.50
EUR 80
3.51 – 4.00
EUR 64
3.01 – 3.50
EUR 48
2.51 – 3.00
EUR 32
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(continuation)
• VET Scholarship is to be obtained after job shortage trades (10/county,
recently already 20)
• Job shortage trades (vocational qualifications) to be defined by the
County Development and Training Councils (and communicated in
government decree)
• Funded from the National Employment Fund Training Sub-fund that is
one of the resources supplied by the 1.5% vocational contributions
• Operated by the OVETAL that is a medium-level authority is Hungary.
• If learning results are under 2.51, remedial training is possible in fourstudent-group and this case the teacher receives the financial support
• Evidence-based figures: Regarding number of students, 50% scholarship
– 50% remedial, regarding resource: 75% scholarship – 25% remedial.
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Some food for thoughts, some dilemma:
• Trades, consequently vocational qualifications continuously change in
their content, in their important parts. Therefore tools of funding can also
change (flexible or more rigid regulations)?
• If the governance is not fully centralized, regional and local organs
probably can cope with challenges in a more efficient way?
• Also a basic question: can we spend more on funding or not? Is the
present level of expenditure enough:
• Are we in possession of all relevant data to carry on a really good funding
system? (Number of students, staff, demand on maintenance, etc.
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Thank you for your kind attention:
György Szent-Léleky (Mr.)
Senior Counsellor
Ministry for National Economy, Hungary
[email protected]
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