Page 20 - Azerbaijan State University of Economics

THE JOURNAL OF ECONOMIC SCIENCES: THEORY AND PRACTICE, V.78, # 1, 2021, pp. 4-25

Consequently, this could negatively affect the standards required by the school in
order to gain as much students as possible respectively as much money as possible. It
is for example the case of Gymnázium Jana Amose Komenského, Uherský Brod (unit
No 5) that registered a drop in number of students four years in a row (2016-2019) by
56 students that was more than 10 %. The effects for the income of the school were
destructive. In general, the years 2016-2017 were difficult for smaller schools due to
unfavourable demographic development and low increase in average salaries (see
Table No 2 – an overview on the annual growth of average salary AST, ASNT). Since
2020 the Phmax calculation method has been fully introduced. Besides an overall
annual increase in 2020 in comparison with year 2019 for each school unit in the
examined group there are similarities to be observed: in case of smaller schools in
terms of number of students (units No 5-8) there is a higher increase in salary funding
of 30-34 % in 2020 for units No 4-8 and at the opposite end the bigger school units
with twice more students registered the increase only of 18 – 20 %. As for school unit
No 4 a steep increase (by 144 % in 2020) cannot be explained by means of standard
budgeting formulas. The representatives or the school and regional authorities
confirmed that the above average increase is caused by the organisational changes in
the education process and resize of the classes and is connected with recruitment of
additional pedagogical staff.
On the one hand the above mentioned facts reflect the effects of the systemic
changes caused by Phmax allocation formula. The student basket formula didn´t
take at all into consideration the additional needs that are though indispensable for
meeting the needs of pedagogical practice: for in-service training, need for
additional positions of pedagogues or psychologists as described before. The
allocated costs consider and express the maximum of teaching lessons per school.
Some of these salary costs were financed from extra funds and in practice the bigger
schools were able to spread these costs among more students. The allocation didn´t
consider the fact that even if the number of students varies from year to year and
drop the number of teaching hours remain the same in order to provide the
curriculum. Loss of students presented always a slump in the income of schools
even if the teaching time didn´t change. These inconveniences are supposed to be
solved by the Phmax calculation. This effect demonstrates in the higher increase of
funds allocated to smaller schools. As for 2021 the increase in funding the salaries
are evenly distributed: 10-11 % for each school unit. As far as unit No 5 is
concerned there is a certain point to be raised on. This school unit registered a drop
of one fifth of the students and the school had to eliminate the number of classes.
The adjustment of the Phmax calculation mechanism didn´t reflect to such an extent
in 2020 and is supposed to be matched in 2021.

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