FINANCING

The information on this page is currently being reviewed. We will update the page soon.

The total educational expenditure in 2002 was approx. 110.9 billion DKK, which corresponds to 8,0 % of the total public expenditure.

The different levels of the Danish education system, which belong under the responsibility of the Ministry of Education, are in some way or other funded by means of the so-called ''taximeter system'' (i.e. according to the principle of ''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 with regard to the implementation of courses of education are best made by the people 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: Many students release a large grant, few students only release 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
The Folkeskole is a municipal school and the municipal schools are not financed according to the taximeter system. The municipalities decide themselves as to which system of financing they want to use for the schools under their responsibility, but 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.

General upper secondary education
Local government schools, i.e. municipal and county schools, are not financed according to the taximeter system. Municipalities and counties decide themselves as to which system they want to use when financing the institutions under their responsibility (i.e. Folkeskoler and Gymnasium/HF-courses), but the Ministry of Education has laid down certain minimum requirements.

The HHX and HTX-programmes which are offered at the vocational colleges are financed according to the taximeter system.

Vocational upper secondary education
Within an annual framework, the Minister of Education allocates a grant to the colleges to cover administration, management and operation of buildings. The operational grant is made up of a basic grant, which is laid down in the Government's annual Finance Acts, and a grant which is allocated on the basis of the number of students per year enrolled at the individual college and a rate per student per year. The rate per student per year is laid down in the annual Finance Acts for large groups of programmes.

The Minister of Education furthermore allocates grants to the colleges for their acquisition and maintenance of classrooms, buildings and areas on the basis of the number of students per year enrolled in the college and a rate per student 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.
http://eng.uvm.dk/news/eaag.htm?menuid=05