Ministry studies private school subsidies
The education ministry has assured private schools that it does not intend to stop a charitable aid programme that allows less privileged children to attend their schools, but it is taking a very close look at compliance and is devising a new funding formula.
“It is not the ministry's intention to discontinue the funding in totality. Funding will be made available based on compliance of the required rules and procedures. A new funding formula will be devised in future,” education permanent secretary Sanet Steenkamp told Namibian Sun.
In line with government-wide budget cuts, the ministry in August announced that it was reviewing the private school subsidy programme that allowed less privileged children to attend these institutions.
But the pinch was already felt earlier this year, when the 2017/18 budget for private school subsidies for learners from poor households took a steep dip.
Since the financial year 2014/15, the ministry has paid close to N$237 million in subsidies to private schools for these learners, about N$35.5 million less than the total of N$272.5 million granted for the same period.
Annually since 2014/15, the annual amount set aside for the aid programme was between N$67 million and N$98 million.
This year the amount dipped to N$29.5 million, of which one third, N$13 million, was paid between April and October 2017.
During the 2014/15 financial year, the government allocated N$67.5 million for these subsidies, and the ministry spent nearly that amount.
For the 2015/16 financial year, the ministry budgeted N$98.6 million and N$81.7 million was paid to private schools.
For the 2016/17 financial year, N$76.8 million was budgeted and N$79.7 was paid out.
Subsidies were calculated on a per capita basis, meaning that each school that is subsidised is required to enrol at least 10% learners from poor backgrounds.
A private school principal in August confirmed that the school had received approximately N$700 000 per term in exchange for making room for 157 learners from poor families.
Another private school confirmed at the end of November it had not received a penny from the state for the entire academic year.
In August, education minister Katrina Hanse-Himarwa set a 31 October deadline, asking schools to submit and motivate their reasons “why the aid that was granted to private schools cannot be reduced or terminated.”
Steenkamp said that based on the responses received from 59 schools to date, 10 846 learners have benefitted.
Some schools have not yet responded.
Private schools have expressed worry about the reduced subsidies or termination of subsidies, noting that they would be forced to increase school fees which could further affect learners whose parents struggle to cover their costs.
Moreover, the affected children could experience high degrees of disruption to their school careers, with all the attendant issues that could arise from transferring them to state schools.
Steenkamp confirmed that the ministry was still receiving school submissions and a “full analysis of the situations of various schools will be done at least before the start of the new financial year.”
She said at least three months would be required to gather more information and conduct an in-depth analysis before making recommendations on the way forward.
The ministry could not yet comment on how much it hoped to save by amending the subsidy programme.
“The full picture of the extent of the financial implication of this provision will only be known once the full exercise is completed.”
Namibian Sun was informed that the ministry wants to tweak the current funding formula for it to be more equitable and fair.
In other cost-cutting initiatives, the ministry also confirmed that it had cut private hostel contributions and was reviewing that programme.
It was confirmed that the previous N$22 per child per day hostel subsidy was cut by N$10, to N$12 per child.
The ministry confirmed that of 124 private hostels, 110 are subsidised by the state, benefitting close to 19 700 learners.
Close to N$111 million was spent during the 2016/17 financial year on the private hostel subsidy programme.
JANA-MARI SMITH
“It is not the ministry's intention to discontinue the funding in totality. Funding will be made available based on compliance of the required rules and procedures. A new funding formula will be devised in future,” education permanent secretary Sanet Steenkamp told Namibian Sun.
In line with government-wide budget cuts, the ministry in August announced that it was reviewing the private school subsidy programme that allowed less privileged children to attend these institutions.
But the pinch was already felt earlier this year, when the 2017/18 budget for private school subsidies for learners from poor households took a steep dip.
Since the financial year 2014/15, the ministry has paid close to N$237 million in subsidies to private schools for these learners, about N$35.5 million less than the total of N$272.5 million granted for the same period.
Annually since 2014/15, the annual amount set aside for the aid programme was between N$67 million and N$98 million.
This year the amount dipped to N$29.5 million, of which one third, N$13 million, was paid between April and October 2017.
During the 2014/15 financial year, the government allocated N$67.5 million for these subsidies, and the ministry spent nearly that amount.
For the 2015/16 financial year, the ministry budgeted N$98.6 million and N$81.7 million was paid to private schools.
For the 2016/17 financial year, N$76.8 million was budgeted and N$79.7 was paid out.
Subsidies were calculated on a per capita basis, meaning that each school that is subsidised is required to enrol at least 10% learners from poor backgrounds.
A private school principal in August confirmed that the school had received approximately N$700 000 per term in exchange for making room for 157 learners from poor families.
Another private school confirmed at the end of November it had not received a penny from the state for the entire academic year.
In August, education minister Katrina Hanse-Himarwa set a 31 October deadline, asking schools to submit and motivate their reasons “why the aid that was granted to private schools cannot be reduced or terminated.”
Steenkamp said that based on the responses received from 59 schools to date, 10 846 learners have benefitted.
Some schools have not yet responded.
Private schools have expressed worry about the reduced subsidies or termination of subsidies, noting that they would be forced to increase school fees which could further affect learners whose parents struggle to cover their costs.
Moreover, the affected children could experience high degrees of disruption to their school careers, with all the attendant issues that could arise from transferring them to state schools.
Steenkamp confirmed that the ministry was still receiving school submissions and a “full analysis of the situations of various schools will be done at least before the start of the new financial year.”
She said at least three months would be required to gather more information and conduct an in-depth analysis before making recommendations on the way forward.
The ministry could not yet comment on how much it hoped to save by amending the subsidy programme.
“The full picture of the extent of the financial implication of this provision will only be known once the full exercise is completed.”
Namibian Sun was informed that the ministry wants to tweak the current funding formula for it to be more equitable and fair.
In other cost-cutting initiatives, the ministry also confirmed that it had cut private hostel contributions and was reviewing that programme.
It was confirmed that the previous N$22 per child per day hostel subsidy was cut by N$10, to N$12 per child.
The ministry confirmed that of 124 private hostels, 110 are subsidised by the state, benefitting close to 19 700 learners.
Close to N$111 million was spent during the 2016/17 financial year on the private hostel subsidy programme.
JANA-MARI SMITH
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