Financing - Netherlands

Primary education

On 1 August 2006, the block grant funding system was introduced in primary education. Under this system, schools’ competent authorities receive a single block grant budget for staff and non-staff costs. They are free to decide how to spend this budget. The school budgets encompass three flows of funds: (i) the regular staff budget, (ii) funding for staff and labour market policies (the former school budget), and (iii) funding for running costs. Until 1 August 2006, staff budgets were calculated in staff units of account. School accommodations are financed by local governments.

Figure 2: Flows of funds in primary education (Ministry of Education, Culture and Science, 2007)
Note: Amounts for 2007 x  € 1 billion

Weightings and cultural minorities

In primary education, pupils with a potential educational disadvantage are given a weighting based on certain criteria. Until August 2006, the following weighting system applied:

• 0.25 for Dutch pupils whose parents have a low level of education;
• 0.4 for bargees’ children;
• 0.7 for caravan dwellers’ and gypsies’ children;
• 0.9 for ethnic minority pupils whose parents have a low level of education.

On the basis of these weightings school receive extra staff and other resources. The weightings do not have a direct effect on the funding of schools. In order to qualify for extra funds under the weighting system, a school must meet a number of additional criteria, such as a minimum percentage of pupils with a weighting. No additional funds are allocated if the school fails to meet this minimum requirement.

Since 1 August 2006, a new weighting system has taken effect for primary education in which only the parents’ level of education counts. Two weightings are used:

• 0.3 for pupils whose parents have no more than lbo (lower vocational training)/vbo (prevocational education) qualifications;
• 1.2 for pupils who have one parent with only a primary education and one parent with no more than lbo/vbo qualification.

The new weighting system will be introduced in steps between 2006 and 2010. Starting in 2006, two extra pupil age groups will be counted every year according to the new system and will be included in the funding a year later.

Secondary education

A system of block grant funding applies to secondary schools. On the basis of a number of criteria they are awarded funds to cover staff and running costs, which they can spend as they see fit, provided they do so within the statutory parameters. In line with the general policy of deregulation (reducing the administrative burden) and greater autonomy (e.g. block grant funding), schools are encouraged to plan their own activities and pursue their own policies. To this end, the funding system for secondary education has been simplified. On 1 January 2006, the first step was taken toward simplifying funding of staff costs with the abolition of the age-related allowance. Funding allocations no longer take account of the average age of the school’s staff. In the same year a shift took place from school year to calendar year funding. The number of pupils enrolled on 1 October determines the amount schools receive for staff and running costs in the following calendar year. Schools now receive funding for the pupils on their rolls earlier in the year, i.e. three months after the final headcount on 1 October. School accommodations are financed by local governments.

Figure 3: Flows of funds in secondary education  (Ministry of Education, Culture and Science, 2007)
Note: Amounts for 2007 x  € 1 billion

Special education

In 1998 the law on the Expertise Centres was introduced. Regional expertise centres (RECs) have been set up, i.e., consortiums of special schools and secondary special schools within a district. The consortiums are divided into four clusters:

• cluster 1: education for the visually handicapped (from the former schools for the blind and partially sighted);
• cluster 2: education for pupils with hearing impediments or communicative handicaps from existing schools, for deaf or hearing-impaired pupils and pupils with severe speech disorders;
• cluster 3: education for physically, mentally and multi-handicapped pupils, and chronically sick pupils;
• cluster 4: education for pupils with behavioural disorders from existing schools, for severely maladjusted children, chronically sick (psycho-somatic) children and pupils in paedological institutes.

The funding of special needs education has been modified in 2003. The system changed from a supply-oriented financing to a system in which the means are forwarded to the person requiring the services to more demand-oriented financing. The policy is known as the ‘back-pack’ policy: pupils take the funding with them to the school of their choice. If a student meets the criteria for this so-called 'pupil-bound budget', parents and pupils can choose a school, special or mainstream, and take part in decision making on the best way to use the funds in order to meet the student's special needs.

Discussion about an alternative funding model

Finally, the way of funding can influence the development of inclusive education as well.  Meijer's study into the financing of special needs education (1999) shows a direct input funding model for special schools, in which more learners in special schools leads to more funds, leads to less inclusion, more labelling and rising costs. Pupil-bound budgeting, on the other hand, also seems to have some clear disadvantages. At times, regular schools are eager to have pupils with special needs (and their budgets), but they prefer learners (and their budgets) who are considered to be ‘easy to fit in’. The study concludes that the most attractive funding option in support of inclusive education is a strongly decentralized system where budgets for supporting learners with ‘special needs’ are delegated to local institutions (municipalities, districts, school clusters). In the Netherlands discussion is taking place on the need to replace pupil-bound budget with an alternative funding model.