FINANCING OF SCHOOLS

As from 1999, and in its complete form from 2000, all educational tasks carried out by the three levels of territorial self-government e financed within the framework of a general subsidy from the State Budget. The only exception – in the year 2000 – was artistic education, the responsibility for which was still with the respective Minister (i.e. the Minister of Culture).
In the year 2000 a uniform system of allocation of funds with the use of an algorithmic formula based on the number of pupils was adopted for the whole education system.

This formula is based on the real number of pupils, adequately increased by the system of 21 weightings (taking into account specific conditions, i.e. rural areas, small towns, as well as specific educational tasks, i.e. special education, integration of SEN pupils (both disabled and socially maladjusted) in mainstream education, vocational education, sports schools).

The territorial self-government unit, as the body running and supporting the school, is responsible for the designing of a budget programme (i.e. a plan of expenditure) for all schools and educational institutions in its area.

Educational investments belong to the self-governments’ own tasks, although they can be also co-financed from the State Budget through the regional authorities.

Financing of Higher Education Institutions
The law on financial management at higher education institutions can be considered as a management tool applied by the central government.

Since 1991 (since the introduction of new acts on higher education and on the State Committee for Scientific Research) the public financing of higher education is based on the following parts of the state budget:

1. "Research" - financial means directed to research activities. The State Committee for Scientific Research is in charge of this subsidy. The Committee divides the subsidy into 6 types of allocations. HEIs usually apply for funds for statutory research, own research and implementation of research projects. The subsidy is divided on the competitive basis.
2. "Higher Education" - financial means directed to teaching (including staff remuneration), in-service training for teachers, financial support to students and to investments. The Ministry of National Education and Sport is in charge of this subsidy (together with other supervising ministries). A HEI can also receive funds from local self-governments' budgets as well as from donations including those from abroad.

The division of teaching subsidy is based on an algorithm formula (introduced in 1993) which takes into consideration the parameters related to numbers of students, doctoral students and qualified academic teachers. In 2001 the rules of this division were slightly modified in order to take into consideration the plan to increase the salaries for academic staff (full implementation of this plan is expected by 2005).

The Act on Higher Education allows for financing of some schools' activities from non-budgetary sources (own income) which include fees charged for particular types of studies, sale of services, etc. As a result, in Polish higher education institutions two types of studies can be observed: tuition fee paying and free of charge.