Financing - Denmark

The total educational expenditure in 2006 (including study grants) was approx. 137 billion DKK, or 8% of the GDP.

The different levels of the Danish education system under the responsibility of the Ministry of Education are funded by means of the so-called ''taximeter system'' (i.e. according to the principle that ''the money follows the student'').

The taximeter system is part of the Ministry's overall strategy of target and framework management. The main idea behind this strategy is that decisions about implementation of courses of education are best made by the persons directly faced with the problems, i.e. the heads and boards of the educational institutions.

The system is based on the allocation of grants to institutions according to their level of activity: a lot students releases a large grant; a few students only releases a small grant. The budget of the previous year has no influence on the size of the budget of the following year.

A key element in the taximeter system is the block grant principle. As long as the block grant is used for legitimate purposes, the institution is free to spend the money in accordance with its own priorities.

All schools financed by central government receive their grants based on various taximeter systems adapted to the different types of schools.

Pre-school Education

Nurseries, kindergartens, other day-care institutions and pre-school classes are financed by the local authorities from block grants allocated by the State.

Compulsory Schooling

As a municipal school, the Folkeskole is not financed from the taximeter system. Municipalities decide upon the system of financing of schools under their responsibility; however, the Ministry of Education has laid down certain minimum requirements.

Transition Period

Secondary education can be divided into general upper secondary education and vocational secondary education.

The Ministry of Education lays down rules of guidance for the schools. Schools, geographically dispersed, are self-governing institutions with different backgrounds and aca-demic profiles. They finance the implementation of one or more of the upper secondary education programmes by means of grants from the Ministry of Education, provided on the basis of student numbers. The head of the school answers to a board, whose composition reflects the school’s specific profile. The teachers and pupils of the school appoint repre-sentatives to the board. The school board appoints and dismisses the headteacher and has overall responsibility for the running of the school and its activities.

For more detailed information, please see: http://www.eng.uvm.dk/~/media/Files/English/Fact%20sheets/080101_fact_sheet_gymnasium.ashx

Vocational upper secondary education

The Minister of Education allocates a yearly grant to the colleges to cover administration, management and operation of buildings. The operational grant is made up of a basic grant, outlined in the Government's annual Finance Acts, and a grant allocated on the basis of the number of students enrolled per year plus a rate per student per year. The rate per student per year is outlined in the annual Finance Acts for large groups of programmes.

Furthermore, the Minister of Education allocates grants to colleges for the acquisition and maintenance of classrooms, buildings and areas. Grants are based on the number of students enrolled per year plus a rate per student, as laid down in the annual Finance Acts for large groups of programmes. The rates may vary on the basis of the geographical location of the colleges and other aspects.