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Controversy over the Algorithm of Distribution of the School Education Component of the General Subvention

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Kowalska I.
Central European Review of Economics & Finance
|
2017
|
issue Vol. 20, No 4
17-34
EN
The school education component of the general subvention is the transfer of funds from the state budget to local self-government units in order to supplement their own income. The algorithm for the distribution of these funds, annually established by the Minister of National Education, creates legal and financial controversy in local self-government environment. The calculations based purely on algorithmic distribution of available public funds seem to be an inadequate form of financial planning especially when confronted with the development of finance as a discipline. Therefore, the aim of this article is to assess the construction of the algorithm for the distribution of the school education component of the general subvention with regard to three aspects, which have not been widely discussed: 1. Algorithm and financial security of the systemic changes in education; 2. Algorithm and indebtedness of local self-government units; 3. Algorithm and the unconstitutional rule of earmarking the funds transferred as the school education component of the general subvention to a specific goal. (original abstract)
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