Financing - Latvia

The financing of educational institutions depends on the ownership of these institutions. There are three types of educational institutions – state, municipal and private. The financing of educational services are stated in the Law on Education (Chapter 7).

The state owed institutions are funded from the state budget according to the Law of State Budget for a definite year.

Municipal educational institutions are funded from two main sources – local budget (the maintenance) and the state budget (teacher salaries and social taxes).

All costs of special schools, classes and groups are covered by earmarked subsidies from the state budget according to the regulations of the Cabinet of Ministers.

Private educational institutions are funded by their founders. The state and municipalities share the costs (teacher salaries and social taxes) of these institutions if the curriculum they provide is licensed by the Ministry of Education and Science.

Pre-school education is two-fold. The compulsory education of 5-6 year old children is covered partly by state (teacher salaries) and by municipalities (maintenance). The education of younger children which is not compulsory is completely the responsibility of local municipalities. If pre-school educational institution has groups for children with special needs the funding comes from the state budget as an earmarked subsidy. Then this group is funded by the earmarked subsidy from the state.

It is planned that in the beginning of school year 2009/2010, a new financing system in education will begin – funding following a pupil using a so called “back pack” principle of financing.