Government's education grant reform sparks backlash from educators

The South Korean government announced plans to abolish the 55-year-old system of allocating local education grants, which are currently tied to national tax revenue. The new framework, set to be implemented from next year, will instead link grant calculations to economic growth rates and the declining school-age population.

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The current national tax linkage structure is a bulwark of education finance that allows local education to be stably managed without being swayed by the judgment of the government or political situations. Dismantling this is a serious problem that undermines the autonomy and stability of education.

Under the current system, 20.79% of national tax revenue is automatically distributed as education grants. The government argues that the proposed change will not reduce overall education funding. They plan to use a formula that incorporates the previous year's grant amount, the average economic growth rate over the last three years, and a deduction based on the decrease in student numbers. A provision will also be included to ensure the total grant amount does not fall below the previous year's level. However, critics point out that the projected grant amount under the new system, estimated at 78.9 trillion won next year, falls significantly short of the nearly 100 trillion won predicted under the current system due to a recent surge in tax revenue.

Education sector representatives are strongly opposing the reform, calling for its complete withdrawal. They argue that the link to national tax revenue has served as a crucial buffer, protecting local education from political fluctuations and ensuring stable funding. The "Emergency Action Group for Local Education Finance Reform Response" stated that dismantling this system undermines the autonomy and stability of education. They are demanding the formation of a formal public deliberation body involving educators, parents, and civil society groups.

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This reform of local education grants is by no means a reform to reduce education finances. The first thing we agreed upon in discussions with the Ministry of Economy and Finance was that we must prevent any situation where budgets for elementary, middle, and high school students are reduced, or even personnel costs cannot be covered.

The Ministry of Education insists the reform is not intended to reduce education finances. Minister Choi Kyo-jin stated that a key agreement was to prevent any reduction in funding for primary, middle, and high school students, ensuring that even personnel costs are covered. However, the Korean Council of Education Superintendents expressed concerns that the proposed compensatory measures only guarantee the previous year's nominal total, while rising costs for inflation and operations would lead to a real decrease in financial capacity. Good Teachers Movement, a teacher's group, criticized the plan as prioritizing average growth rates over the actual needs of education, effectively pushing education to the sidelines.

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The compensatory measures presented by the government, in case the grant calculated by the reform formula decreases compared to the previous year, are only at a level that maintains the nominal total of the previous year. Even if the total grant amount is the same as the previous year, all necessary educational costs such as inflation, personnel expenses, and school operating expenses will continue to rise, so the actual financial capacity will inevitably shrink.