Page 11 - Azerbaijan State University of Economics

Dana Ondrušková , Richard Pospíšil: A Comparative Study of Teacher’s Salary Formula
Methods, Case of Regional School Funding

(1) Most formulas allocate funds to schools mainly on a student number basis
(equivalent number of enrolled pupils at each grade level or number of courses
thought which is adjusted according to grade or age level to correct).

(2) Needs-based variables are included in school funding formulas in order to take
into account the additional resource needs of teaching pupils with learning
disabilities or who come from disadvantaged socio-economic backgrounds.
The additional resources are meant to provide further help for such pupils by
offering them, for example, additional teaching time, specialised learning
material, and smaller classes.

(3) Curriculum or education programme-based variables acknowledge the
different resource implications of enhanced and specific education
programmes such as music, languages or sports education. Higher costs can
arise from additional courses, more expensive teaching materials, higher
salaries for specialist teachers.

(4) School characteristics-based variables reflect the cost differentials arising from
the size of the school, the relative isolation of the school’s community,
physical aspects of the school premises, and local price levels. School size
substantively changes the per pupil costs of education: small schools are
typically costlier per student than larger ones. Isolated and rural communities
tend to incur higher

After fixing the variables and used indicators the formulas count on with the coefficients
attached to each indicator. The use of school funding formulas surely depends on the
characteristics of the wider policy environment, the autonomy of schools to manage the
allocated funds. Even after fixing the variables and indicators for the calculation the
difficult question remains: what monetary values or coefficients to attach to each
indicator. costs due to extra autonomy of travelling expenses.

Suggested principles of flexible budgeting

Based on the above mentioned assumptions the following chart No 1 assumes own
proposal of flexible budgeting process.

Chart No 1: Flexible budgeting process

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