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Fourth ECA Education Conference October 24-26, 2007, Tirana, Albania, “ Issues and Choices in Financing TVE”

Fourth ECA Education Conference October 24-26, 2007, Tirana, Albania, “ Issues and Choices in Financing TVE”. Combination of Per Capita and Performance-based Funding of Initial VET in Finland, Kari Pitkänen, October 26, 2007 . Geographical data: 338 000 km 2 (10% water, 69% forests)

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Fourth ECA Education Conference October 24-26, 2007, Tirana, Albania, “ Issues and Choices in Financing TVE”

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  1. Fourth ECA Education Conference October 24-26, 2007, Tirana, Albania, “Issues and Choices in Financing TVE” Combination of Per Capita and Performance-based Funding of Initial VET in Finland, Kari Pitkänen, October 26, 2007

  2. Geographical data: 338 000 km2 (10% water, 69% forests) 188 000 lakes 1269 km border with Russia People: 5,3 million 67% in urban and 33% in rural areas Languages: Finnish, Swedish, Sami Society and economy: Member of EU since 1995 Free public services and high taxation Economic competitiveness Technological advancement Low corruption Finland in the North

  3. Main Features of Education System • Voluntary participation in pre-school education (6 year olds, 98 % participate) • 9 year basic education in comprehensive school • 96 % continue immediately after basic education in in 3 year upper secondary education divided to: • General Education (53 % out of 60 000) • Vocational education and training (43 % out of 60 000) • Higher education divided to: • University education • Polytechnic education • Wide supply of different forms of adult education and training

  4. Steering of VET Providers • New government (every 4th year) decides on Education Development Plan – high rate of consensus and sustainability • MoE decides on licence for provider of VET. Licence is relatively permanent: • The municipalities in which VET is organized; • The language of teaching; • The broad branches of VET; • The maximum number of students (eligible of state funding); • Special educational assignments; and • The form of organization of VET (apprenticeship training). • MoE decides on National Qualifications (52) and National Board of Education on Core Curricula for VET (113 study programs) • Regional provider of education has high autonomy in those frames to direct VET

  5. Structure of Funding VET Providers FINANCING OF VET QUALITY AWARD STATUTORY GOVERNMENT TRANSFER UNIT PRICE/STUDENT/YEAR including performance-based funding BASED ON QUALITY ASSESMENT (EFQM) - SPECIAL THEMES (Qualitative) BASED ON OPERATIONAL OUTCOME - effectiveness - processes - staff

  6. Per Capita Funding • Numbers of students on January 1. and on September 20. • Real average expenditure from year t – 2 as basis for the Government’s Unit Price Decision • Average for all VET in 2006 was 8 300 €/student. • Unit price varies according to the branch of VET • Total funding = Number of Students x Unit Prices • Depreciation of school buildings is added to unit prices – no grants for capital investments. • MoE pays monthly 1/12 of the annual grant • Providers/owners (ca. 200) of VET institutions have autonomy to distribute budget inside institution • Rector has normally high degree of decision-making power.

  7. Unit Prices in 2006

  8. Performance-Based Funding Index Performance-Based Funding • Calculation of the final Index is based on the measures described above. • In calculating the Performance-Based Funding Index, different measures are given different weights: Effectiveness • Placement in employment 40 % • Placement in further education measure 15 % Process • Drop-out measure 15 % • Graduation measure 13 % Human resources • Teacher Qualification measure 11 % • Staff-Development measure 6 %

  9. Quality Awards in Performance-based Financing of VET • Based on EFQM and modified for VET • Yearly changing special themes • 2004 Vocational education developing regional working life • 2005 Different learners in VET • 2006 Management and developing teachers know-how • 2007 Skills tests in vocational education • Awarded to providers of vocational education • Max 4 awards/year: 200 000 – 300 000 €

  10. Even if the Share of Performance Funding is only 5 %, it fixes Focus on Real Results and Quality Per capita funding (95 %): • promotes reaching the quantitative objectives • promotes efficiency and autonomy of VET schools Performance-based funding (5 %): • focuses on real results of VET – employability and progress in education • includes both quantitative and qualitative approach • process indicators focus on care-taking of students • stress the importance of human (teacher) resources According to recent study: • 95 % of providers monitor performance indicators • 93 % gained benefit of performance-based system

  11. Finnish Life Style

  12. Reforms of Education in Finland

  13. Hvala Vam Puno,Drage Dame i Gospodo

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