CHAP

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D I N G
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Daniel M
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36 Basic Education Rights Handbook – Education Rights in South Africa – Chapter 2: Funding Basic Education Basic Education Rights Handbook – Education Rights in South Africa – Chapter 2: Funding Basic Education 37
 ECONOMIC
INTRODUCTION
This chapter will provide an overview of how public schools are
funded in South Africa, and what the challenges and opportunities HUMAN
are for parents, teachers and learners to ensure that this funding goes RIGHTS
as far as possible to secure the right to a basic education for all.
POLITICAL
It has been designed to help those the provision of quality education knowledge, lower scores, and higher
working with or who have an interest for only a minority of the population. dropout rates at historically black schools.
in education funding to understand Black, coloured, Indian and Asian The post-apartheid democratic In South Africa, the
the education budget process, and South Africans, as well as women and administration inherited a segregated key principles, roles
advocate for changes that will promote the disabled, received an inferior basic education system based on a highly and responsibilities
underpinning
the right to basic education. education to that provided to whites. inequitable funding model designed budget process
Equal access to education is critical This discrimination was especially specifically to promote certain groups are set out in the
for ensuring that everyone has the evident in the highly inequitable resource over others. The question of equalising Constitution.
These include:
opportunity to participate equally in allocations that were provided to schools resource allocations and ensuring
»» public
society and fulfil their potential. The according to their racial classification. economic access to a quality education participation
Constitution of South Africa guarantees
everyone access to basic education;
By providing as much as ten times more
funding to white schools than black
for all has been at the centre of debate
on how to overcome the legacies of the
»» transparency
»» equity ADMINISTRATIVE
and ensuring that basic education is schools, the previous government ensured past, and – as the 1995 White Paper on »» accountability
adequately and equitably funded by that economic and social opportunity Education and Training promised – ‘open
the state has been prioritised since would be prescribed based on one’s the doors of learning and culture to all’.
the democratic transition, in order race, gender or class. The effects of The policy guidelines adopted at the
to promote more equal access to
quality teaching and learning.
The apartheid government that
these policies continue to hamper the
provision of equal education today.
Education takes place over many
1992 National Conference of the ANC and
published in ‘Ready to Govern’ committed
the ANC government-in-waiting to
THE BUDGET PROCESS
ruled South Africa until 1994 was well years, and is a cross-generational exercise ‘equalising the per capita expenditure
aware of the power of education and involving learners, teachers and parents, between black and white education’, and Public education, which accounts for 95% of all education provided in South
the fundamental role that access to so the inferior education provided to the ensuring that ‘resources are redistributed
quality education could play in the majority of people until 1994 continues to the most disadvantaged sectors of Africa, is funded by the government budget. Some public schools are able
development of a country. Yet the to reproduce unequal outcomes. This can our society, in particular, women, rural to supplement this funding by charging fees. This section will explain:
racial, gender and class bias of that be seen in the legacies of substandard and adult students, and mentally or
government meant that it supported infrastructure and teacher subject physically disabled children and adults’. • What a constitutional approach to • How revenue is raised for including conditional grants
public-school funding requires the government to spend on • The provincial equitable share
• The budget process in South Africa, providing basic education • The determination of each
The remainder of this chapter explains the choices that were subsequently made including the main stakeholders • How revenue raised nationally province’s equitable share of
involved, key documents produced, is divided between the three the provincial sphere’s share of
and enacted into law since 1994, and the funding model that was adopted and a timeline of the basic education spheres of government: national, revenue, including whether the
to ensure the constitutional guarantee of a quality basic education for all. budget process and where the provincial and local formula used to determine this
public can provide input • The national equitable share, share is indeed equitable.

38 Basic Education Rights Handbook – Education Rights in South Africa – Chapter 2: Funding Basic Education Basic Education Rights Handbook – Education Rights in South Africa – Chapter 2: Funding Basic Education 39
 A CONSTITUTIONAL APPROACH TO PUBLIC SCHOOL FUNDING confusing, too. At any one time throughout the budget process are set out in the could challenge programmes or policies that
are potentially threatening to the enjoyment
Chapter 1 of this book spoke at length about the right to basic education in the Constitution. A summary the year, there are a variety of budgets under Constitution. These include public
and guarantee of constitutional rights.
of the constitutional approach to basic education funding can be seen in Table 2.1 below. consideration by a number of stakeholders, participation, transparency, equity and
who all have different roles to play. accountability. I have noted above that But before public participation in the
Table 2.1: A summary of the constitutional approach to basic education funding. This section will describe the key substantive equality is a key goal and budget process can happen, there must also
stakeholders, documents and stages obligation under the Constitution. The be transparency in the budget process.
WHAT THE CONSTITUTION WHAT THIS MEANS FOR involved in the budget process, focusing budget plays a very important role in Transparency and openness are also
REQUIRES SCHOOL FUNDING POLICY on how these ultimately contribute to achieving this, and therefore must be basic values of the Constitution, and
Universal Everyone has the right • No-one may be denied access to education on any ground. the development of a basic education judged by (among other factors) its impact require the government to take steps to
Access to a basic education. • Basic education must be physically and economically accessible to all. budget that is managed and spent at on reducing and eliminating inequality ensure that information on the budget
• Physical access means that schools must be within a reasonable distance national, provincial and school level. in the country, including in relation to processes of national, provincial and local
of learners, and transport must be available, at the state’s expense, to carry Throughout, I will highlight points at access to quality basic education. government is accessible and enables the
learners who live beyond a reasonable distance to the nearest school which the public can provide input Section 215(1) of the Constitution public to engage with these processes.
• Economic access means that no-one may be denied access to a public school into this process in order to advance states that ‘National, provincial and For the past 10 years, South Africa has
due to an inability to pay fees or to pay for basic school supplies. and protect their right to education. municipal budgets and budgetary consistently been ranked among the top six
Adequacy The right to basic • Resources – which are sufficient to ensure high levels of quality throughout processes must promote transparency, countries in the world by the internationally
and Quality education is the right the basic education system – must be raised and invested by the state. accountability and effective financial recognised Open Budget Index (OBI) for
to an education of an • This includes that all educational infrastructure and goods, and teacher training THE PRINCIPLES AND management’. The principle of the transparency of its budget process. This
adequate quality. and development, must be adequate to meet the needs of teachers and learners. FUNCTIONS UNDERPINNING accountability applies to all government means that a large amount of information
THE BUDGET PROCESS processes and is particularly important on the budget is made available by the
Substantive Education of an A progressive funding model must be in place which ensures that:
Equality and adequate quality • all schools have the resources necessary to provide a quality basic education Budgeting is one of the most important in the allocation and expenditure National Treasury in a timely and accessible
Redress must be provided • schools that were underfunded in the past must receive relatively more tasks carried out by government. This of government budgets. manner. Much of this information is
and made available resources from the state than schools that were well funded during apartheid, is because without adequate funding, All funds raised by the state are public published online at [Link]. All
and accessible to all. in order to rectify past funding imbalances and ensure substantive equality even the best policies and plans will funds, because they derive mainly from of the key budget documents mentioned
• under-performing schools must receive funding which, in conjunction be hard to implement successfully. the taxes people pay. So the public are in this chapter are available online.
with other reforms, is sufficient to bring them up to standard. Budgeting is a political, economic, entitled to have a say in how these funds Provincial Treasuries and local
administrative and human-rights-based are allocated and spent, and must be able governments have a more mixed
Priority Basic education of • Ensuring equal access to quality basic education must be
an adequate quality treated as a priority in government budgets. process. Political in the sense that it entails to hold officials accountable if these funds record in providing timely and up-
must be provided competition among various groups for are not directed towards the public good, to-date information on their budget
and made available limited resources. Economic in the sense do not achieve their stated objectives, or processes; sometimes documents are
to all immediately. that the budget is the government’s most are misspent or wasted by departments. not made available online at all, and
important economic tool for setting the Public participation is regarded must be requested – either from the
Efficiency and Resources allocated • A lack of available resources cannot be a justifiable reason for
direction of the economy, and for allocating as a ‘basic value’ in the Constitution, provincial treasury or local government
effectiveness to public schools the state failing to provide a quality basic education.
and basic education • Schools (including their teachers, learners and parents) who feel that the quality resources within the economy. The budget which requires in Section 195(e) that concerned, or from National Treasury.
more broadly must of education being provided is being limited by a lack of resources can claim more process is also a vital administrative process, ‘people’s needs must be responded to, No matter how much information
be used as efficiently resources from the state, and sue the state for more resources if necessary. because it is central to the purposes of and the public must be encouraged is available, however, engaging with the
and effectively as • Teachers, learners and parents can also sue their school or their provincial government planning, coordinating, controlling and to participate in policymaking’. budget process can be quite daunting
possible to achieve if the resources that are being made available to the school are being misused, or evaluating the activities of government. The National Treasury’s Budget Analysis at first. The remainder of this section
their intended aims. otherwise inefficiently or ineffectively used towards providing quality basic education. Finally, government budgeting is also a Manual confirms this, by stating that: will try to make engagement with the
human-rights process, in that the ultimate Participation is an indispensable principle basic education budget process easier, by
goal of the budget is to raise and allocate in the budget process. […] and is likely explaining the main stakeholders involved
to result in more equitable expenditure
funds in a way that enables government patterns than a process which is dominated and the key documents produced in this
THE BUDGET PROCESS the National Assembly. This important financial year (1 April to 31 March). to fulfil its constitutional and international by the powerful sectors of society. Effective process, and by showing when in the year
IN SOUTH AFRICA speech sets out the government’s revenue The budget process that ultimately leads human-rights obligations to people. participation can also serve to ensure efficient key budget decisions are made, and how
provision and more equitable distribution
Every year in late February, the Minister and spending plans, and key financial to this speech is complex; and to the outside In South Africa, the key principles, the public can provide input into these
of budgetary allocations. Through active
of Finance delivers the budget speech in and performance targets, for the next observer, can appear rather opaque and roles and responsibilities underpinning participation in the budget process, people important decision-making processes.

40 Basic Education Rights Handbook – Education Rights in South Africa – Chapter 2: Funding Basic Education Basic Education Rights Handbook – Education Rights in South Africa – Chapter 2: Funding Basic Education 41
 THE MAIN STAKEHOLDERS INVOLVED AND KEY DOCUMENTS
PRODUCED IN THE BUDGET PROCESS (focusing on basic education)
Minister’s Committee on the Budget scrutinising the budget submissions made by PEDs oversee and manage the basic the activities and budgets of national Figure 2.1: Diagram of the budget process and main stakeholders
(Mincombud)– a subcommittee of each department to ensure they are aligned to education system within their jurisdiction, departments and hold them accountable.
the Cabinet, Mincombud discusses the Cabinet’s policy and budgetary priorities. including the provincial education budget. Committees also debate and provide
the overall budget environment and In addition, there are eight Formal Functional Provincial treasuries, together with PEDs, input into the development of bills; and
advises Cabinet, which is responsible MTECs based on functional groupings determine how much of their total can receive petitions from members of the CABINET
for the final approval of the budget. known as ‘clusters’, which also scrutinise and provincial budget will be allocated to basic public, and often issue calls for comment

National Treasury (NT)– led by the

help departments develop budgets that are
in harmony with the plans and priorities
education. Following national guidelines,
PEDs and Provincial Treasuries also decide
by the public on proposed bills as well
as issues relating to the budget. The
MINCOMBUD
Minister of Finance, NT is responsible for of other departments in that cluster. the precise allocations to schools, and committees therefore provide a platform
managing the government’s finances and how the provincial education budget will for the public to put their views across
the budget process. This includes advising 10x10 working group on basic education be divided between personnel and non- directly to MPs. Three National Assembly
Cabinet on the state of the economy and – the management and provision of basic personnel expenditures, as well as how committees are particularly important for
government finances, overseeing expenditure education is a concurrent function, meaning much money will be allocated to other the basic education budgeting process:
NATIONAL
by national departments, and monitoring that the implementation of basic education expenditures required for the provision of • The Portfolio Committee on Basic SARS TREASURY DBE
the implementation of provincial budgets. is carried out by the national Department of basic education such as the payment of Education oversees the activities,
NT also develops a three-year Medium Term Basic Education together with (or concurrently teachers and the upgrading of infrastructure. spending and budgeting of the DBE,
Expenditure Framework (MTEF), the basis with) provincial education departments. To and produces reports on the basic
for discussions with departments, which in ensure a cohesive planning and budgeting Department of Planning, Monitoring education budget for which the public
turn leads to the Medium Term Budget Policy process, the 10x10 working group is convened and Evaluation (DPME)– located in the can provide written or verbal input
NATIONAL
Statement (MTBPS), which is tabled at least
three months before the budget speech and
by NT to bring the chief role players in national
and provincial education departments together
presidency, the DPME is responsible for
planning and monitoring the implementation
• The Standing Committee on
Finance oversees and holds NT
ASSEMBLY
PARLIAMENTARY
sets out the government’s financial plans for the with national and provincial treasuries. The of national priority outcomes, as identified accountable, and provides inputs DPME MTECs COMMITTEES
next three years. NT also issues guidelines for 10x10 group therefore includes the Minister in the National Development Plan (NDP) into the budget process
departments to complete their own MTEF and of Basic Education and the nine provincial and elaborated every five years in the • The Standing Committee on
Estimates of Expenditure. Finally, NT prepares MECs for education, plus representatives Outcome Agreements of the Medium Term Appropriations primarily advises NT
the Division of Revenue Bill, Appropriation from NT and the nine provincial treasuries Strategic Framework (MTSF). The DPME on the Appropriations Bill, including
Bill, Estimates of National Expenditure – hence the name of the group: ‘10x10’. takes part in Mincombud, MTECs and 10x10 considering public comments. FFC
and Budget Review for presentation to working groups, to ensure that the Outcome 10
parliament in the budget speech. National Department of Basic Education Agreement for basic education is reflected Parliamentary Committees in the National X
Provincial Treasuries– led by each province’s
(DBE)– led by the Minister of Basic Education,
the DBE overseas the basic education sector
upon and given effect to in the budget process. Council of Provinces (NCOP) play a
similar role to the National Assembly
10s
MEC for Finance, provincial treasuries as a whole, including the implementation Financial and Fiscal Commission (FFC) committees, but at the provincial level.
are responsible for managing provincial of national legislation and regulations by – the FFC is mandated by Chapter 13 of They are made up of provincial MPs
government finances and budget processes, provinces (including the National Norms the Constitution to provide independent and also hear public petitions and
EASTERN FREE GAUTENG KWAZULU- LIMPOPO MPUMALANGA NORTHERN NORTHERN WESTERN
including facilitating each province’s MTBPS and Standards for School Funding), and advice to government on financial and fiscal comments on the budget and proposed CAPE STATE NATAL TREASURY TREASURY CAPE CAPE CAPE
TREASURY TREASURY TREASURY TREASURY TREASURY TREASURY
and the provincial budget, which includes manages conditional grants to provinces matters. The FFC conducts research and bills. The committees involved in the TREASURY
an Appropriation Bill and Estimates of together with NT. The DBE takes part in investigations into basic education budgeting basic education budget process are the
Provincial Revenue and Expenditure (EPRE). Mincombud, the MTECs and the 10x10 and expenditure, and makes recommendations NCOP Education and Recreation, NCOP EASTERN FREE GAUTENG KWAZULU- LIMPOPO MPUMALANGA NORTHERN NORTHERN WESTERN
CAPE STATE PED NATAL PED PED CAPE CAPE CAPE
Provincial Treasuries also monitor and working group on basic education. Through to National Treasury, MTEC, the 10x10 Finance and NCOP Appropriations. PED PED PED PED PED
PED
support the implementation of the provincial these interactions, the DBE plays an important working-group members and Parliament’s
budget by provincial departments. role in establishing the national education Portfolio Committee on Basic Education. Members of the public and civil society
policy priorities, and therefore the outlines of organisations can participate in various
Medium Term Expenditure Committee the total national budget for basic education. Parliamentary Committees in the National stages of the budget process, including NCOP
(MTEC)– consists of senior officials from Assembly– consisting of 15-20 MPs broadly by making petitions or submissions PARLIAMENTARY
NT and other departments, including Basic Provincial Education Departments (PEDs) representative of the parties in the National to many of the bodies listed above COMMITTEES
Education. It is responsible for hearing and – led by each province’s MEC for education, Assembly, Parliamentary Committees monitor (see Figure 2.1, and next page).

42 Basic Education Rights Handbook – Education Rights in South Africa – Chapter 2: Funding Basic Education Basic Education Rights Handbook – Education Rights in South Africa – Chapter 2: Funding Basic Education 43
 Figure 2.2: Timeline of the basic education budget process and where the public can provide input

JUNE LATE AUGUST FEBRUARY

››NT sends MTEF guidelines to DBE. ››MTEC presents recommendations ››The President outlines the
Pre-budget bilateral meetings between to the 10x10 group. 10x10 identifies government’s priorities for the
NT and the DBE reflecting on the risks and opportunities, and year in the mid-February State
previous year’s process, the current collectively agrees on priority issues. of the Nation Address (SONA).
year’s process, and general expectations. Guided by the NDP, MTEF and Portfolio ››In the last week of February the
DBE and PEDs begin to formulate their Committee Reports. Opportunity for public budget is tabled by the Finance
budget submissions (how much money input: Submissions to the Committees Minister outlining how these
they want, and for what activities). of the National Assembly & NCOP priorities will be financed in the
budget speech. The national budget
JULY SEPTEMBER includes the Division of Revenue
Bill and the Appropriation Bill.
››DBE and Provincial Treasuries ››MTECs and 10x10s end.
make their first budget submissions ››DBE and Provincial Treasuries Opportunity for public input:
to NT & Cabinet Lekgotla on make their revised budget 1. Visit [Link]
the budget takes place. submissions and submit chapters and go to ‘Budget Tips’.
Opportunity for public input. Lobbying for the Adjustments Estimates 2. Visit [Link] before
conducted prior to July could have The revised submission is in line the Budget Speech to vote for what you
an impact on what the DBE and PEDs with the recommendations of MTEC would like to see in the budget, and after
include in their budget submissions. and agreements of the 10x10. the budget speech to vote for what you
Opportunity for public input: liked and didn’t like about the budget,
ENGAGING WITH THE • Request MPs to ask questions on • At the school level, join the school EARLY AUGUST Submissions to the Committees of
and submit comments directly to the
››Mincombud approves Appropriations Committee in parliament.
BUDGET PROCESS your behalf in the parliamentary governing body (SGB) to participate the National Assembly & NCOP
preliminary fiscal framework
There are numerous opportunities committees and in the weekly in the budgeting and spending of MARCH
and division of revenue and OCTOBER
for members of the public – either as sessions to the executive funds allocated for the school. sectoral budget priorities. ››MECs for Finance make their Budget
››Adjustments Appropriation Bill, Speeches to Provincial Legislatures
individuals, or collectively through a • Participate in public hearings on ››Formal functional MTECs meet to Amended Division of Revenue Bill
non-governmental organisation or the budget organised by national The chart on the next page shows that discuss expenditure priorities. on the Provincial Budget, which
and MTBPS are tabled in parliament includes an Appropriation Bill and
community organisation – to engage and provincial treasuries while the budget process is complicated, by the Minister of Finance. Estimates of Provincial Revenue
and provide input into the budget • Make a contribution to the involves many different stakeholders, and MID AUGUST and Expenditure (EPRE).
process. Figure 2.1 on the previous ‘Alternative Budget Speech’, which goes on throughout the year, there are some ››MTEC discussions and 10x10s start. NOVEMBER
page and Figure 2.2 on the next page is developed by civil society key opportunities for the public to provide Treasury presents the new budget ››NT issues guidelines to DBE MARCH – APRIL
should assist those interested to find organisations in the months prior input into the basic education budget. environment / All reflect on previous and Provinces for their ››Parliamentary Committees hold
the stakeholders and documents they to the official budget speech Information about issues in basic year’s performance (financial and non- Estimates of Expenditure. hearings on the Budget Vote.
need to analyse and engage with the • Lobby the DBE and/or PEDs on education funding can also be brought financial) / DPME input on NDP Outcome Parliamentary Committees
1 Agreement for Basic Education / 10x10 The Portfolio Committee on Basic
basic education budget process. their budget submissions, as well to the Financial and Fiscal Commission. publish Budgetary Review and Education asks the DBE whether it
for the Basic Education Sector established. Recommendations Reports.
as on their performance and the By doing so, members of the public can fulfilled its promises from the previous
spending of their budgets highlight corruption and misspent funds, AUGUST Opportunity for public input: year’s budget, and what it plans to
THERE ARE MANY WAYS TO • Submit ‘Budget Tips’ to the Minister of or schools that were not built despite funds Submissions to the Committees of achieve from the current budget.
››10x10s continue
ENGAGE WITH THE BASIC Finance by visiting [Link] being allocated for this in the budget. the National Assembly & NCOP Opportunity for public input:
EDUCATION BUDGET PROCESS, The 10x10 discusses basic education-
• Visit [Link] before Whatever the reason for providing Submissions to the Portfolio Committees
INCLUDING THE FOLLOWING:
sector performance (expenditure and DECEMBER of the National Assembly and NCOP
the Budget Speech to vote for what input into the budget process, outputs, value for money and NDP ››DBE and Provincial
• Make written or oral submissions you would like to see in the budget, government must listen; by using these Outcome 1 Agreement); opportunities Treasuries finalise MTEF and JULY
or petitions in any of the official and after the budget speech to vote for opportunities, members of the public for reprioritisation of resources or Expenditure Estimates.
activities; funding pressures and options ››The National Assembly and NCOP
languages of South Africa to what you liked and didn’t like about can help the government decide what vote to pass the final budget into law
for resourcing those; new policy initiatives
the parliamentary committees the budget, and submit comments is working and what isn’t working in
and options for resourcing those. JANUARY through the Appropriation Act and
of the National Assembly and directly to the Appropriations basic education, and therefore what ››Final allocation letters sent by NT Division of Revenue Act (DORA).
National Council of Provinces Committee in parliament its budget priorities should be. to DBE and Provincial Treasuries.

44 Basic Education Rights Handbook – Education Rights in South Africa – Chapter 2: Funding Basic Education Basic Education Rights Handbook – Education Rights in South Africa – Chapter 2: Funding Basic Education 45
 Once the provincial treasuries and growth (measured in Gross Domestic THE EQUITABLE DIVISION OF revenue is between the three spheres African Local Government Association transferred directly to the three spheres, a
education departments, and National Product, or GDP), the amount of trade REVENUE BETWEEN THE THREE of government: national, provincial (SALGA) and the Financial and Fiscal large portion of the national department’s
Treasury and the DBE and other South Africa has with other countries, SPHERES OF GOVERNMENT and local. This is known as the vertical Commission have been consulted and share includes South Africa’s debt service
stakeholders involved in the budget and the amount of investment in the Section 40(1) of the Constitution division of revenue. Each year, the their recommendations considered. costs and conditional grants that are
process – including the public – have economy. When GDP is growing and establishes that ‘government is constituted Minister of Finance presents a Division The amount of money that is divided paid to provinces and municipalities.
deliberated and finally decided how much trade is good, more revenue should be as national, provincial and local spheres of Revenue Bill in the budget speech, between and distributed directly (as a When presenting the vertical division
money will be required and allocated for collected and available for the government of government which are distinctive, which once passed by parliament ‘direct charge’ against the national revenue of revenue, it is therefore useful to separate
basic education, and what it will be spent to spend on anything from providing interdependent and interrelated’. becomes the Division of Revenue Act. fund) to the three spheres of government the amount of revenue that is actually
on, the Finance Minister will have a figure health care to basic education. The principle of co-operative This Act gives effect to the division of is known as each sphere’s equitable share. reserved for the payment of the national
for the total basic education budget. When economic performance is not government is established in Section 41 revenue among the three spheres, as per In 2016/17, the national department’s debt and conditional grants, as this cannot
Once all the other national, provincial so good, the government will collect of the Constitution, and requires that the Section 214(1) of the Constitution. equitable share was R855 billion (65% of be spent on anything else by the national
and local government departments have less revenue, due to the decrease is three spheres work together to provide Section 241(2) of the Constitution the total), while the provincial equitable departments. When these transfers are
done the same, a final budget for the economic activity. This may result in effective government for the people. requires further that the Division of share was R411 billion (31% of the total), accounted for, one can see what national,
whole of government can be prepared government’s spending plans being higher The Constitution also sets out the Revenue Act (DORA) can only be and the local government equitable provincial and local governments are
by the Finance Minister to present to than the revenue it expects to receive. distinctive features and functions of each enacted after provincial governments, share was R53 billion (4% of the total). actually able to spend on providing goods
parliament. The remainder of this section This is known as a budget deficit. sphere of government. This includes organised local government via the South However, while these equitable shares are and services such as basic education.
will look at the key divisions of this When there is a high budget deficit, functional areas in which a single sphere
revenue that are established by the budget the government will have to make difficult is responsible (for example, only the Table 2.2: Vertical division of revenue raised nationally among the three spheres of government (including equitable share
process and formalised in the Division of choices about its revenue raising and National Assembly can amend the allocations, conditional grants, general fuel levy sharing with metros and debt service costs), 2012/13 – 2016/17
Revenue Act and the Appropriation Act. spending plans. It may decide to reduce its Constitution, and only under special
spending by making cuts to services, or to circumstances, while only provincial R BILLION / % OF TOTAL 2012/13 2013/14 2014/15 2015/16 2016/17
move funds around by cutting some areas governments can issue liquor licences). National departments 420 453 490 547 560
RAISING REVENUE (INCOME) of spending and adding to other areas. While some functional areas are
FOR THE GOVERNMENT Government could also raise taxes, limited to one sphere of government, Percentage share 43.5% 43.3% 43.3% 43.8% 42.5%
Government revenue is collected mainly to try to collect more revenue and many overlap with other spheres. Provinces 381 411 440 472 500
by the South African Revenue Service therefore avoid cuts. Or it could try to When both national and provincial
Percentage share 39.5% 39.2% 38.8% 37.8% 37.9%
(SARS), and is kept in the National borrow money from banks and other governments are responsible for a
Revenue Fund (the government’s bank financial institutions, both in and functional area, this is known as a of which Equitable share 311 336 360 387 411
account). Government revenue consists of: outside South Africa. It could also try concurrent function. Basic education Conditional grants 70 74 80 85 89
• Taxes: including personal and to ‘stimulate’ the economy by lowering is a good example of a concurrent
corporate income tax, dividends interest rates (to increase borrowing and function, because it is managed, Local government 76 83 88 100 105
tax, and value-added tax (VAT) spending by consumers) or by printing overseen and implemented at both Percentage share 7.9% 7.9% 7.7% 8.0% 8.0%
• Duties: including transfer duties money (to stimulate spending). the national and provincial levels
and customs and excise duties In reality, government will usually (or spheres) of government. of which Equitable share 37 39 42 51 53
• Levies: including the skills development respond to a decrease in revenue by The budgeting process for basic Conditional grants 30 34 36 38 41
levy, fuel levy and electricity levy trying more than one of these options. education therefore involves both national
General fuel-levy sharing with metros 9 10 10 11 11
• Mineral royalties. In all cases, government must do stakeholders such as the DBE and National
everything it can to maintain and Treasury, and provincial stakeholders Debt service costs 88 101 115 129 148
The amount of revenue (or income) the progressively increase social spending in such as PEDs and Provincial Treasuries. Percentage share 9.1% 9.7% 10.1% 10.4% 11.2%
government collects is affected by many areas such as basic education, in order This is important to note, because the
things, including economic activity and to fulfil its constitutional obligations. first major division of the government’s Total government expenditure 965 1048 1132 1247 1318

46 Basic Education Rights Handbook – Education Rights in South Africa – Chapter 2: Funding Basic Education Basic Education Rights Handbook – Education Rights in South Africa – Chapter 2: Funding Basic Education 47
 Table 1 shows how much of the total 2. THE PROVINCIAL EQUITABLE SHARE The equitable-share formula devised
government budget is spent by national The provincial equitable share is the by National Treasury consists of six
departments, provincial government, main source of revenue for provinces, separate components, which aim to
local government and on debt-service and must cover all of the functions and divide revenue among the provinces
costs. This table shows that in recent activities of provincial governments. equitably based on the above criteria.
years, rising debt-service costs have had Over 90% of education spending by the • Education component (weighted:
a negative impact on the percentage provinces is based on equitable share 48%), based equally on the size of
of the budget allocated to the national funding. In addition to the equitable the school-age population in each
and provincial spheres in particular. share, provinces receive conditional grants province, and the number of learners Table 2.3: Actual equitable share allocations and amounts allocated to education (PEDs) in 2016/17
While debt costs constituted from national departments which allow enrolled in public ordinary schools
9.1% of the total budget in 2012/13, them to undertake further activities, • Health component (weighted 27%) % OF EQUITABLE
by 2016/17 this had increased to as determined by National Treasury, based on province’s risk profile TOTAL EQUITABLE SHARE OF LEARNERS SHARE 2015
11.2%. Meanwhile, the share going in conjunction with relevant national and health-system case load EQUITABLE OF WHICH, SHARE TOTAL AS A % OF ALLOCATION MATRIC
to national departments dropped departments. However, provinces decide • Basic component (weighted 16%) 2016/17 SHARE ALLOCATED ALLOCATED SHARE OF PROVINCIAL PROVINCE’S TO PASS
PROVINCE AND ALLOCATION TO TO LEARNERS EDUCATION TOTAL EDUCATION RATE
from 43.5% to 42.5%, and the share how they will spend their equitable share derived from each province’s share
(POVERTY RANKING) (R MILLION) EDUCATION EDUCATION IN SA EXPENDITURE POPULATION PER LEARNER RANKING
going to the provinces dropped from allocation. This explains why conditional of the national population
39.5% to 37.9% during the same grants are used by national government: • Institutional component (weighted 5%) Limpopo (1) 48 709 24 635 50.6% (1) 13.7% 12.7% 28.2% (2) R14 058 (9) 7
period. The share going to local it gives it more control and oversight divided equally between the provinces
government has been relatively stable. over certain functions carried out by the • Poverty component (weighted 3%) Eastern Cape (2) 58 060 28 207 48.6% (2) 15.2% 14.6% 24.3% (5) R14 473 (8) 9
As basic education is a concurrent provinces, as these funds are provided distributed progressively, based North West (3) 28 062 12 824 45.7% (7) 6.4% 6.6% 17.0% (9) R15 771 (4) 4
function between the national DBE conditionally on their undertaking of on the number of people living
and PEDs, funding for basic education specific programmes and activities. in each province who fall in the Mpumalanga (4) 33 450 16 234 48.5% (3) 8.4% 8.4% 26.3% (3) R15 068 (6) 5
is provided from both the provincial lowest 40% of household incomes KwaZulu-Natal (5) 87 898 41 905 47.7% (4) 22.5% 21.6% 30.6% (1) R14 575 (7) 8
equitable share (around 90% of the • Economic output component
total basic education budget) and the THE DETERMINATION OF (weighted 1%) distributed Free State (6) 22 995 10 693 46.5% (5) 5.3% 5.5% 25.1% (4) R15 695 (5) 3
national equitable share (the remaining EACH PROVINCE’S EQUITABLE regressively, based on regional GDP.
Northern Cape (7) 10 863 4 769 43.9% (8) 2.3% 2.5% 24.2% (6) R16 488 (1) 6
10%). Any decrease in the national SHARE OF THE PROVINCIAL
and provincial equitable shares as SPHERE’S SHARE OF REVENUE At 48%, the education component Gauteng (8) 79 600 36 857 46.3% (6) 17.6% 19.0% 21.9% (7) R16 400 (2) 2
a percentage of total government The provincial equitable share is further therefore determines 48% of each
expenditure is therefore likely to put divided ‘horizontally’ between the nine province’s share. This means that in Western Cape (9) 41 062 17 455 42.5% (9) 8.6% 9.0% 17.7% (8) R15 944 (3) 1
pressure on basic education funding. provinces. This is known as the horizontal 2016/17, 48% of the R411 billion allocated Total / average 410 699 193 580 47.1% 100% 100% 23.3% R15 148 -
division of revenue. The determination to the provinces – R197 billion – was
of each province’s share of the provincial divided among the provinces based on
1. THE NATIONAL EQUITABLE SHARE, sphere’s share of revenue follows a the number of learners in each province. Note that: of SA’s learners, and among the highest of enrolled learners in each province.
INCLUDING CONDITIONAL GRANTS formula called the equitable share • The two poorest provinces – education allocations per learner. However, while school enrolment numbers
The national share pays for all the formula. This formula is designed to Limpopo and Eastern Cape – have are updated each year, the age cohort
functions and activities of national divide these funds equitably between the EDUCATION FUNDING UNDER the lowest education allocations How is this possible? of 5-17 year olds has not been updated
departments and debt-service costs, provinces, based on criteria established THE EQUITABLE SHARE per learner (R14 058 and R14 473) since the 2011 census, and is therefore
as well as conditional grants, which are by Section 214(2) of the Constitution: FORMULA: NOT SO EQUITABLE • Together with KwaZulu-Natal, these 1. GETTING THE NUMBERS RIGHT out of date. Including these out of date
transferred to the provinces. Conditional (b) t he need to ensure that the provinces However, the equitable share formula provinces share of total provincial Determining the formula is a complex age cohort numbers results in skewed
grants are funds that National Treasury are able to provide basic services and does not necessarily result in an education expenditure is less than exercise and there are a range of issues effects. For example, the formula under-
perform the functions allocated to them;
allocates to the national departments equitable share of revenue among their share of SA’s learners that need to be considered. First, the estimates the number of learners in
(f) developmental and other
to pay for specific programmes and needs of the provinces; the provinces. Table 2 shows how the • Conversely, Gauteng and Western Cape education portion of the equitable share most provinces (especially EC, LP and
activities that will be implemented by (g) e conomic disparities within provincial equitable share was divided have a higher share of total provincial is based on the average between the KZN) and overestimates the number
the provinces and local government. and among the provinces. among the provinces in 2016/17. education expenditure than their share cohort of 5-17 year olds and the number of learners in the Western Cape.

48 Basic Education Rights Handbook – Education Rights in South Africa – Chapter 2: Funding Basic Education Basic Education Rights Handbook – Education Rights in South Africa – Chapter 2: Funding Basic Education 49
 2. THE FORMULA NEEDS TO TAKE variety of goods and services are means that schools in urban areas have backlogs in school infrastructure, R12 billion; a relatively small amount, So, even if a province really wanted to
INTO ACCOUNT THE UNEQUAL produced and made available, and are a higher range of qualified teachers these make up a very small portion of which – even if distributed progressively equalise schooling inputs and outcomes
COST OF PROVIDING EDUCATION therefore easier to find and cheaper to choose from than rural areas. provincial spending compared to the (i.e. a higher share to the poorer – for example, by making significant extra
IN RURAL AND URBAN SETTINGS, to procure. It is therefore generally One way of getting teachers to equitable share, and have experienced provinces) – would not have a significant investments into poorer public schools –
THE PROPORTION OF SCHOOLS
cheaper to build and maintain teach in more rural areas would be to a number of implementation problems impact on poverty and inequality its ability to do so is limited by the fact that
IN EACH PROVINCE THAT ARE
schools and procure the goods and provide them with a financial incentive (see chapter 12 of this book). within or between the provinces. its main budget is based on an equitable-
CLASSIFIED AS POOR (QUINTILES 1
TO 3), AND THE RELATIVE BURDEN services necessary for providing to do so, but no extra funding for this is The National Norms and Standards share formula that hasn’t taken this
OF POVERTY AND UNEQUAL education in urban areas (such as included in the equitable share formula. for School Funding (NNSSF), discussed in consideration significantly into account.
DEVELOPMENT IN EACH PROVINCE. water and sanitation, books and 3. TOWARDS A MORE EQUITABLE the next section of this chapter, do take There are at least two things the
textbooks, furniture, IT equipment, SHARE FORMULA FOR EDUCATION into account some of the above factors, government can do to achieve a more
The current equitable share formula has and internet access, among others) THE IMPERATIVE OF REDRESS In order for education to be and are therefore a more redistributive equitable share formula for education:
thus resulted in the poorest provinces • There are also cost benefits to the REQUIRES MORE FUNDING transformed, South Africa needs a funding mechanism than the equitable 1. National Treasury and the Department
spending more of their provincial higher population density and smaller FOR POORER PROVINCES AND more progressive funding model that share formula. The same is largely true of of Basic Education should analyse
equitable shares on education than geographical space of urban areas, SCHOOLS THAN RICHER ONES provides relatively more funding to conditional grants made to provinces. the cost differences of providing
richer provinces, but still ending because the closer that learners, The formula also does not take poorer and more rural provinces. However, the NNSSF and conditional education in rural and urban settings,
up spending less per learner. This is teachers and schools are to each other, into account the unequal starting Under such a model, poorer and grants affect only 10 to 20% of total and adjust the formula accordingly.
problematic for two further reasons. the less expensive it is to get them points of historically disadvantaged more rural provinces, and provinces with education funding (the remaining 80-90% 2. Treasury should increase the weighting
together for the purposes of schooling. and under-funded schools. historical backlogs in relation to trained is equitable share and personnel funding, given to the poverty component of
For example, funding scholar More rural provinces such as the teachers and school infrastructure, which is also not significantly progressive the formula, so that provinces with a
QUALITY EDUCATION IS MORE transport in rural areas is an ongoing Eastern Cape have a higher number would have more education funds or redistributive), which means that higher share of their population living
EXPENSIVE TO PROVIDE IN RURAL problem that is not accounted for of schools that were under-resourced available per learner than richer and however redistributive the NNSSF are, they in poverty receive relatively more funds.
COMPARED TO URBAN SETTINGS in the equitable share formula. during apartheid, and therefore require more urban provinces. Under the present cannot fundamentally reduce disparities This is necessary to reduce inequality
As well as being provinces with high more funds now for building new or formula, the opposite is the case. between poorer and richer schools. within and between the provinces
percentages of people living in poverty, For a variety of reasons (which will be renovating inadequate schools. Improving At only 3% of the total, the weighting Also, by the time each school’s , as the Constitution requires..
Limpopo, Eastern Cape and KwaZulu- looked at in the next section), there school infrastructure, such as providing given to the poverty component in the funding allocation based on the NNSSF is
Natal are also among the most rural. are also more teachers trained in the libraries or sports facilities to the many equitable-share formula is insufficient calculated, the total provincial equitable Until these issues with the formula
It is more expensive to provide quality urban parts of the country, and these schools that currently lack these, is to reduce the inequality that exists due share has already been determined based are addressed, the current high levels
education in rural areas than it is in urban parts therefore tend to have more expensive; but the equitable share to the demographic, economic and on a formula that doesn’t take the need of inequality between wealthier
areas. This is for several reasons, including: qualified teachers. These teachers are formula does not account for this. geographical differences between the for redistribution and the achievement provinces, schools and learners and
• Urban areas benefit from ‘economies more likely to want to teach in the urban Although conditional grants have provinces. In 2016/17, 3% of the provincial of equity and equality between schools those that are less well-resourced
of scale’, which means that a wider areas where they were trained, which been allocated in recent years to tackle equitable share amounted to about and provinces that much into account. will be difficult to overcome.

50 Basic Education Rights Handbook – Education Rights in South Africa – Chapter 2: Funding Basic Education Basic Education Rights Handbook – Education Rights in South Africa – Chapter 2: Funding Basic Education 51
 THE BASIC
EDUCATION BUDGET
Having seen how the budget process works and how the government’s
budget is divided between the three spheres, this section will
describe the make-up of the basic education budget itself.

A. THE TOTAL BASIC spending. For example, spending on education has been expanded to the Figure 2.3 shows that the government at the national level, which reflects spending on post-school education and
EDUCATION BUDGET defence (the military) and state security vast majority of people in the country. spent more money on basic education the importance attached to the training. The latter includes spending
Since 1994, the government has has been reduced from 10.5% of total The total government budget and social protection (which includes right to basic education in the on higher and further education,
reorganised the budget so that more government spending in 1994/95 to for all of its expenditures was R1.46 social grants) than other expenditure Constitution, as discussed above. whereas basic education includes only
people benefit from government 3.3% of total government spending in trillion in 2016/17. Figure 2.2 shows areas between 2012/13 and 2017/18. One thing to note on this graph spending on primary and secondary
spending than was the case in the 2016/17. At the same time, funding how the budget was divided between This indicates that government is is that government classifies basic school (and some pre-primary spending,
past. This is true of basic education as for basic education has increased the government’s main expenditure giving priority to basic education education spending differently to on early childhood development).
well as for health care and other social substantially, and access to basic items between 2012/13 and 2017/18.
Figure 2.4: Basic education and other main expenditures as a percentage of total government expenditure, 2012/13 – 2017/18.
Figure 2.3: Government expenditure on basic education and other main expenditures, 2012/13 – 2017/18.
20%
R250
Basic education

R200 Health

% of total government expenditure

15% Post-school education & training
R250
Environmental protection
Consolidated expenditure (R billion)

R175 Basic education Defence

Health
10% General public services
R150
Post-school education & training
Housing & community amenities
R125 Environmental protection
Defence Social protection
5%
R100 General public services Agriculture
Housing & community amenities Economic affairs
R75
Social protection
Public order & safety
0%
R50 Agriculture
2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 Debt service costs
Economic affairs
R25 Public order & safety
Figure 3 shows that the share of declined by about 1.5 percentage to social protection, housing
Debt service costs
R0 total government expenditure points since 2012/13, while and debt-service costs, in
2012/13 2013/14 2014/15 2015/16 2016/17 2017/18
going to basic education has the share of the budget going particular, has increased.

52 Basic Education Rights Handbook – Education Rights in South Africa – Chapter 2: Funding Basic Education Basic Education Rights Handbook – Education Rights in South Africa – Chapter 2: Funding Basic Education 53
 Figure 2.5: Annual increase to the basic education budget, compared with CPI inflation and other expenditures, 2013/14 – 2017/18
BREAKDOWN OF THE TOTAL BASIC down the total basic education budget, • Education Infrastructure Grant
16% EDUCATION BUDGET: NATIONAL one way is to divide the budget between • HIV and AIDS Life Skills
Annual nominal increase in expenditure

14% EXPENDITURE, CONDITIONAL national DBE expenditure, conditional Programme Grant

GRANTS AND PROVINCIAL grants and provincial equitable share • National School Nutrition
12% EQUITABLE-SHARE EXPENDITURE
expenditure on basic education. Programme Grant.
10% The total basic education budget is These main funding streams cover the
Basic education divided between the national DBE and the following functions and expenditures: Provincial equitable share expenditure
8% Social protection nine provincial education departments by PEDs. Provinces decide how much
6% Debt service costs (PEDs). However, of the total funds that National DBE expenditure includes of their provincial equitable share to
Housing & community amenities are allocated to the DBE, around 70% administration costs, curriculum allocate to basic education, which as
4% are subsequently transferred to PEDs policy, support and monitoring, Table 2.2 showed, is between 42% to 51%.
Post-school education & training
2% in the form of conditional grants. This teacher education and institutional This includes expenditure on personnel
Health
means that the total provincial budget development, planning, assessment costs (compensation of employees and
0% CPI inflation for basic education is made up of two and educational enrichment services. teachers) and non-personnel costs,
2013/14 2014/15 2015/16 2016/17 2017/18
funding streams: conditional grants The following conditional such as books and school facilities.
from the DBE, and an amount allocated grants are funded by the DBE: Dividing the total basic education
Figure 4 above shows that in recent protection, health and housing. The basic is projected to be almost stagnant. from the provinces’ equitable-share • Dinaledi Schools Grant budget between national DBE
years, annual increases to the basic education allocation has only just kept Table 2.3 below shows the actual allocation. The latter is the provinces’ main • Technical Secondary School expenditure, conditional grants and
education budget have been lower than up with CPI inflation during this period, amounts in the budget allocated to basic budget for basic education: conditional Recapitalisation Grant provincial equitable-share expenditure
annual increases on other expenditures, meaning that it hasn’t grown much in education and other main expenditures grants supplement this budget. • Occupation-Specific Dispensation for helps us to have an overall picture
including debt-service costs, social real terms, and in 2016/17 and 2017/18 for the 2016/17 financial year. While there are many ways to break Education-Sector Therapists Grant of the basic education budget.

Table 2.4: Consolidated spending on basic education and other main expenditures, 2016/17. Figure 2.6: The total basic education budget divided by national DBE expenditure, conditional
grants, and provincial equitable share expenditure, 2005/06 – 2016/17
2016/17 Government expenditures R billion % of total
Social protection 224.2 15.3% 100% National DBE expenditure 2.8%
Basic education 218.8 15.0% Conditional Grants 7.5&
Housing and community amenities* 169.3 11.6% Provincial Equitable Share Expenditure 89.7%
Health 167.5 11.5% 80%
Economic affairs** 152.4 10.4%
Debt service costs 147.7 10.2%
Public order and safety 129.5 8.8% 60%

General public services 86.4 5.9%

Post-school education and training 68.7 4.8%
Defence 47.7 3.3% 40%

Agriculture 19.8 1.4%

Arts, sports, recreation and culture 11.4 0.8%
20%
Environmental protection 7.9 0.5%
Contingency reserve 6.0 0.4%
Total government expenditure 1 463.3 100.0%
0%
*’housing and community amenities’ includes water and sanitation and other basic services, as well as rural development and land reform.
2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17
** ‘economic affairs’ includes investments in economic infrastructure.

54 Basic Education Rights Handbook – Education Rights in South Africa – Chapter 2: Funding Basic Education Basic Education Rights Handbook – Education Rights in South Africa – Chapter 2: Funding Basic Education 55
 As Figure 2.5 illustrates, the bulk of for post-school education and training. 84 of 1996) – provides for a uniform Figure 2.7: The total basic education budget divided by national DBE expenditure,
basic education spending is done The government and the DBE have system, overseen by the DBE, for conditional grants and provincial equitable-share expenditure, 2016/17
by the provinces. When you add developed an extensive legislative, the organisation, governance and
provincial equitable-share expenditure policy and regulatory framework to funding of schools. The Schools Act,
on basic education to the conditional give effect to the state’s constitutional among other things, establishes SGBs 2.8%
grants received by PEDs, provincial obligations to ensure the right of learners and determines their role in school National DBE
expenditure
expenditure makes up around 97% of to access quality basic education. The funding, as well as the principles 7.5%
Conditional
all expenditure on basic education. DBE, based in Pretoria, is responsible governing policies around school fees Grants
However, Figure 5 also demonstrates for overseeing the implementation of • National Norms and Standards for
a trend towards a higher share of total national education laws and policies. School Funding (NNSSF, as amended 89.7%
spending by the national DBE, combined Implementation itself (i.e. the provision in 2006) – adopted in terms of Provincial Equitable
Share Expenditure
with a rise in the use of conditional of education and management of schools), Section 39(7) of the Schools Act, the
grants. This highlights the evolving however, takes place at provincial and NNSSF deals with the procedures to
structure of basic education funding in school level, and is the responsibility be adopted by PEDs in determining
South Africa, which has moved gradually of the nine provincial education resource allocations to their schools
away from a model in which in 2005/06, departments (PEDs) in conjunction • Employment of Educators Act (Act
PEDs had discretion over almost 98% with school governing bodies (SGBs). No. 76 of 1998) – regulates the
of total basic education spending, to The DBE’s oversight and governance role employment of educators by the state
the 2016/17 model, in which PEDs should not be understated, however, • Education Laws Amendment
control less than 90% of the total basic since the DBE develops and monitors Act (Act No. 24 of 2005) – this
education budget (with the remainder the implementation of the laws, policies, Act amended the Schools Act to
controlled by the DBE through conditional regulations and financial frameworks authorise the Minister of Basic
grants and its own expenditures). to which provinces must adhere. Education to declare schools in
The most important laws poorer areas to be ‘no-fee schools’.
and regulations governing basic National DBE expenditure is divided provinces under these programmes. This oversight over how these funds are spent.
B. THE ROLE OF THE NATIONAL education funding include: It is important to note that these between five programmes. Conditional system ensures that the provinces use these With the exception of Administration,
DEPARTMENT OF BASIC • National Education Policy Act laws and regulations are developed grants are allocated by National Treasury funds on specific programmes and activities, conditional grants are funded under these
EDUCATION IN PROVIDING AND (Act No. 27 of 1996) – empowers and overseen by the DBE, but largely to the DBE, and then transferred to the which gives the DBE more control and programmes as set out in table 2.4.
OVERSEEING BASIC EDUCATION the Minister of Basic Education to implemented by the provinces. This
FUNDING, INCLUDING determine the national policy for means that when it comes to advocating Table 2.5: DBE programmes under which conditional grants are funded
CONDITIONAL GRANTS the planning, provision, financing, for changes to overall school funding
staffing, coordination, management, policies or for new policies, citizens DBE PROGRAMME CONDITIONAL GRANT
The Department of Basic Education governance, monitoring, evaluation should focus their advocacy efforts on TRANSFERRED TO PROVINCES
(DBE) emerged in 2009 when the and well-being of the basic education the DBE, and the Portfolio Committee
1. Administration • No conditional grants
former Department of Education system. This Act provides a framework on Basic Education, which holds the
was split into two departments: the within which the Minister of Basic DBE accountable and assists in the 2. Curriculum Policy, Support • Dinaledi Schools Grant
DBE, and the Department of Higher Education works with the provinces development of new or amended and Monitoring • Technical Secondary School Recapitalisation Grant
Education and Training (DHET). to determine national norms law and policy. An overview of the 3. Teacher Education, Human Resource • Occupation-Specific Dispensation for
The DBE is now responsible for and standards for the education law and case law that has an impact and Institutional Development Education-Sector Therapists Grant
governing South Africa’s primary and system, including in relation to on education provisioning is set out 4. Planning Information and Assessment • Education Infrastructure Grant
secondary school system, which includes funding, which the PEDs are then in Chapter 12 of this handbook.
5. Educational Enrichment Services • National School Nutrition Programme Grant
13 years of formal schooling from Grade R responsible for implementing Figure 2.6 shows the make-up of the
• HIV and AIDS Life Skills Programme Grant
to Grade 12, while the DHET is responsible • South African Schools Act (Act No. total basic education budget in 2016/17.

56 Basic Education Rights Handbook – Education Rights in South Africa – Chapter 2: Funding Basic Education Basic Education Rights Handbook – Education Rights in South Africa – Chapter 2: Funding Basic Education 57
 PROGRAMME 1: ADMINISTRATION policies and monitor and support Technical Secondary School • Improving teacher capacity • Improving school infrastructure Programme 4 also funds the National
Programme 1 funds the management their implementation, as well as Recapitalisation Grant and practices (including furniture, water and Education Collaborative Trust (NECT)
and administration of the DBE and the following objectives: This grant aims to improve the • Strengthening school management sanitation services, and overseeing the and National Education Evaluation
Ministry of Basic Education, with the • Improve teacher capacity and practices conditions of technical schools to meet and promoting functional implementation of national norms and and Development Unit (NEEDU), and
objects of improving the capacity of • Increase access to high-quality the requirements of learners, and to schools (management tools) standards for school infrastructure) handles conditional grants to provinces
the DBE to deliver on its mandate of learning materials increase the number of qualified and • Strengthening the capacity • Ensuring adequate learner to improve school infrastructure.
developing and overseeing a quality basic • Strengthen partnerships with all skilled graduates from these schools. of district offices. transport is provided by the PEDs
education system, and strengthening stakeholders, resulting in education Of the R233 million allocated to this and departments of transport Education Infrastructure
partnerships with stakeholders to ensure becoming a national priority grant in 2014/15, R220 million was This programme is therefore responsible • Developing and overseeing a ‘world- Conditional Grant
that education is a national priority. • Universalise access to Grade R. spent by the provinces. The R13 million for the policy areas of teacher supply and class’ system of standardised national The provision and maintenance of
Officials under this programme are of under-expenditure was put down utilisation, teacher qualifications and assessments (including the NSC, adequate education infrastructure is an
also responsible for the development In other words, this programme is to slow procurement, service delivery development, teacher accountability, ANA, TIMSS and SACMEQ) essential component of the right to basic
of national education policies. responsible for developing and overseeing and payment processes by Limpopo, school management and governance, • Promoting sound financial planning, education. According to NEIMS, as of 2015:
This programme also funds the DBE’s the Curriculum Assessment Policy Mpumalanga and Eastern Cape PEDs. and district development. Programme 3 which ensures that all schools are • 913 schools lack electricity, while a
research and reports, including the Statements (CAPS), the development, Following a review by the DBE therefore works closely with PEDs as well funded at least at the minimum further 2 854 have unreliable electricity
department’s Annual Report, which details procurement and delivery of Learning in 2015, it was decided that these as education unions. This programme per-learner levels determined • 452 schools have no water supply, while
the spending and performance of the and Teaching Support Materials grants would be merged into a new funds one conditional grant: nationally, and that funds are utilised 4 773 have an unreliable water supply
department each year, and on which most (workbooks, textbook and libraries – Maths, Science and Technology transparently and effectively • 128 schools have no toilet
of the information in this section is based. LTSM), Early Childhood Development, (MST) Grant from 2015/16 onwards. Occupation-Specific Dispensation for • Developing and maintaining the facilities, while 10 419 schools
Finally, a grant-management unit Adult Literacy, Special Needs Education, The MST Conditional Grant aims Education-Sector Therapists Grant Education Management Information have only pit or bucket latrines
is situated under this programme. It e-Learning, and Mathematics, Science to promote mathematics, physical This grant was established to augment System (EMIS), National Education
provides inputs into the draft conditional and Technology programmes. science and technology teaching the baseline compensation budget of the Infrastructure Management System The Education Infrastructure Grant was
grant frameworks and MTEF allocations This programme funds two and learning, and also to improve PEDs in order to enable them to reach (NEIMS); South African School established in 2011 to help to accelerate
that are sent to National Treasury, as conditional grants to the provinces: teacher content knowledge and parity in remuneration in compliance Administration and Management the construction, maintenance and
well as facilitating interaction between learner numbers in these subjects. with Collective Agreement 1 of the System (SA-SAMS), and the upgrading of existing and new education
the DBE and PEDs on the grants, Dinaledi Schools Conditional Grant Education Labour Relations Council. Learner Unit Record Information infrastructure. It has received between
and conducting annual monitoring The aim of the Dinaledi Schools and Tracking System (LURITS) R5 billion and R9 billion in allocations
and evaluation of all the conditional Conditional Grant is to increase PROGRAMME 3: TEACHERS, • supporting under-performing districts per year since 2011/12, which are
grants administered by the DBE. participation in and improve the EDUCATION HUMAN RESOURCES PROGRAMME 4: PLANNING, and managing the DBE call centre, which disbursed to all nine provinces. PEDs are
performance of learners taking AND INSTITUTIONAL DEVELOPMENT INFORMATION AND ASSESSMENT provides information about education required to spend the funds in a way
Mathematics, Physical Science and Life The purpose of Programme 3 is to The DBE’s Programme 4 exists to services and programmes (such as that maximises education infrastructure
PROGRAMME 2: CURRICULUM Science subjects. Of the R111 million promote quality teaching and institutional promote quality service delivery in certificates and NSC results), as well as improvements in their province.
POLICY, SUPPORT AND MONITORING allocated to this grant in 2014/15, R96 performance through the effective the basic education system through allowing anyone to report problems in PEDs have had a very mixed record
The purpose of Programme 2 is to million was spent. The R15 million of under- supply, development and utilisation effective planning, information the education system directly to the in spending and delivering on this
develop curriculum and assessment expenditure was mainly by Limpopo PED. of human resources. This includes: and assessment. This includes: DBE on a toll-free line (0800 202 933). grant since it was introduced.

58 Basic Education Rights Handbook – Education Rights in South Africa – Chapter 2: Funding Basic Education Basic Education Rights Handbook – Education Rights in South Africa – Chapter 2: Funding Basic Education 59
 In 2014/15, Eastern Cape PED under-spent and 2014/15, only 106 schools had been an environment in schools that is free South Africa. The remaining 97% is spent for the employment of educators by post allocations are employed by PEDs,
on this grant by R181-million, while Free improved or built and completed and of discrimination, stigma and sexual by the PEDs, whose budget comes from a the State, and continues to regulate not by the schools. PEDs therefore use
State and North West PEDs under-spent by handed over to the communities, while harassment and abuse. Provinces have combination of equitable share allocations the conditions of service, discipline, personnel funding from their provincial
a combined R141 million. Other provinces a further 381 schools had been provided consistently spent well on the annual and conditional grants. To make sense of retirement and discharge of educators. equitable share to pay teachers directly.
spent all of their grant, which is a significant with improved water and sanitation and allocation to this grant of around how PEDs spend this money, it is useful to In 1998, regulations titled Creation However, the Schools Act empowers
improvement – particularly for Limpopo 292 schools provided with electricity. R230 million, which has shown strong show what is spent on personnel costs and of Educator Posts in a Provincial SGBs to hire and pay additional teachers
PED, which in previous years had under- In 2015, National Treasury and performance in achieving its main aims. what is spent on non-personnel costs. Department of Education and the through school funds collected via
spent as much as 20% of its allocation the DBE agreed to merge the School Personnel costs include teacher and Distribution of Such Posts to The school fees and other initiatives.
under this grant, and Western Cape PED, Infrastructure Backlogs Grant into the National School Nutrition support-staff salaries, as well as the Educational Institutions of Such a
which had under-spent by as much as Education Infrastructure Grant in order Programme Conditional Grant compensation of PED and Education Department were also promulgated.
15% of its allocation in previous years. to address the poor performance of The National School Nutrition Programme District Office staff. Education is These regulations provide a formula for LACK OF REDISTRIBUTION
ASIDI. The legal developments in respect aims to foster better education by a labour-intensive activity, and the allocation of teacher posts to schools IN PERSONNEL FUNDING
School Infrastructure Backlogs of school infrastructure are discussed enhancing children’s active learning personnel costs therefore make up a based on a number of factors, including: Personnel spending is perhaps the least
(indirect) Conditional Grant in Chapter 13 of this handbook. capacity and addressing barriers to large part of the budgets of PEDs. • the maximum ideal class size redistributive aspect of education funding.
The Accelerated School Infrastructure learning associated with hunger and In 1997, the Department of Education • period load of educators This is because provinces use personnel
Delivery Initiative (ASIDI), established in malnutrition, by providing nutritious implemented its teacher-rationalisation • the need to promote certain subjects funding to pay teachers and staff who are
2011/12, was also designed to fast-track PROGRAMME 5: EDUCATION meals to learners in all schools. policy, which equalised teacher salaries • language of instruction allocated to schools through formulas that
improvements to school infrastructure. ENRICHMENT SERVICES The programme also serves as a means that had previously been significantly • school phases, and the number weight learners according to their grade
It has been funded by an indirect The purpose of Programme 5 is to develop for the state to fulfil its mandate to ensure unequal under the apartheid-era of grades taught at the school level and expected size of the class for the
conditional grant provided by National policies and programmes to improve that children and youth attending public education budgets that favoured • disabilities of learners subject being taught, with poverty and
Treasury called the School Infrastructure the quality of learning in schools. This schools are able to access sufficient food. learners attending white schools. • number of learners attending the school. redistribution playing only a small role.
Backlogs Grant. This is an indirect grant includes promoting the overall well-being The programme has an allocation of over Later that same year, national guidelines The Post Distribution Model for
because it is not channelled through of learners by improving their physical and R5 billion, and currently provides meals for the redeployment of teachers were Accordingly, dual-medium schools that the Allocation of Educator Posts
the provinces, but rather through psychological health, which is crucial for to around nine million learners each day. abolished, and PEDs were empowered teach in multiple languages, for example, to Schools (Regulation 1451 of
the implementing agent, which is the learners to be able to study effectively. It is Although occasional reports to determine the number of teachers to receive more teachers than single- 2002) establishes this formula.
Development Bank of South Africa. under this programme that the DBE funds have emerged of corruption and employ from their provincial education medium schools. After the provincial While the Employment of Educators
This grant was meant to implement the National School Nutrition Programme delivery failures with contractors budgets. While this policy strove to MEC determines how many posts the Act mandates that PEDs fill teacher
projects in provinces to replace Conditional Grant and the HIV and AIDS undermining performance on this ensure that all schools were provided province can afford, the provincial posts on the basis of equality, equity and
inappropriate infrastructure and Life-Skills Programme Conditional Grant. grant, PEDs have consistently spent with adequate numbers of teachers, Head of Department (HOD) is then other democratic values and principles
provide water, sanitation and electricity the funds allocated to them, and the learners continued to attend schools responsible for distributing the posts to laid out in the Constitution, other
to schools, but has performed HIV and AIDS Life-Skills programme has been able to expand with overcrowded classrooms due to schools by 30 September each year (for funding mechanisms effectively interfere
very badly since its inception. Programme Conditional Grant and improve its impact over the years. lack of sufficient classroom space for all the following year) after consultation with the state’s policy towards equity
Less than half of the grant was spent in This grant exists to support South teachers, inefficiencies in teacher post with unions and SGB organisations. in the system of teacher allocation.
its first three years of implementation, and Africa’s HIV/AIDS prevention strategy provisioning processes, and delays in While schools are empowered to Since teachers all belong to a single
the targets for its impact were therefore by increasing knowledge about sexual PERSONNEL FUNDING the filling of vacant teacher posts. publicise and take applications for national civil service, their salaries are set
largely scaled back. Despite R7.8 billion of and reproductive health among DBE expenditure makes up only around The Employment of Educators teacher-post vacancies and choose their nationally and in accordance with their
allocations to this grant between 2011/12 learners and educators, and ensuring 3% of total spending on education in Act (Act No. 76 of 1998) provided own teachers, teachers hired through qualifications and experience. Accordingly,

60 Basic Education Rights Handbook – Education Rights in South Africa – Chapter 2: Funding Basic Education Basic Education Rights Handbook – Education Rights in South Africa – Chapter 2: Funding Basic Education 61
 wealthier schools that attract better purposes, to be allocated according to the maintenance and stationery costs, Figure 2.8 below shows that most provinces provinces have missed the 80:20 target the 80:20 target in 2016/17. Northern
qualified and more experienced educators, Norms and Standards For School Funding as well as other school expenses. spend less than the recommended 80% of over the past few years. After spending the Cape and North West have seen their
particularly in subject areas such as distribution formula described below. Salaries for teachers are determined their budgets on personnel costs. KwaZulu- highest share of its budget on personnel personnel costs increasing, but still spend
mathematics and sciences, take up a larger Of the 5% of posts reserved for redress, nationally and provincially through Natal and Limpopo have demonstrated a costs in 2012/13, the Eastern Cape has less than 80% of their budgets on personnel.
share of a PED’s personnel budget than a the poorest (quintile 1) schools receive negotiations at the Education trend towards spending a higher portion of reduced the portion of its budget spent Western Cape and Gauteng have the lowest
poor school that employs less qualified 35% of these posts, while the least poor Labour Relations Council (ELRC). their budget on personnel costs. Both these on personnel costs and managed to meet personnel to non-personnel cost ratios.
and less experienced educators. Also, these (quintile 5) schools receive 5% of these The ELRC is a bargaining council
wealthier ordinary public schools are able posts. Redress therefore accounts for a very that serves the public education sector Figure 2.9: Personnel and non-personnel expenditure by PEDs in 2016/17.
to ensure that they attract higher-qualified minor amount of personnel expenditure, nationally and provincially. The stated
and more experienced educators through despite this making up the vast majority purposes of the ELRC are to promote
topping up teacher salaries and adding of each province’s education budget. the maintenance of labour peace in the
additional SGB-funded educator posts The Norms and Standards for public education sector through the 16.9% 17.7% 20% 21.8% 22.1% 23.1% 23.2% 25.4% 27.8%
through the collection of school fees, School Funding set a target of 80:20 for provisioning of dispute resolution and
resulting in lower learner/teacher ratios. personnel to non-personnel costs, and prevention services, as well as through
The poverty grading (by quintile) of a a further target of 85:15 for educators the facilitation of negotiations between
school is used as a factor for distributing and support staff. These targets are trade unions and the state as employer.
83.1% 82.3% 80% 78.2% 77.9% 76.9% 76.8% 74.6% 72.2%
teacher posts in the Post Distribution designed to ensure that provinces The following trend graph shows
Model formula. Regulation 1451 requires have sufficient funds remaining to pay which provinces have met the
heads of department to set aside up to non-personnel costs, such as learning 80:20 target for personnel and non-
5% of their posts for poverty redress and teaching support materials, school personnel costs since 2012/13.

Figure 2.8: Personnel costs as a percentage of total expenditure by PEDs, 2012/13 – 2016/17.

KWAZULU-NATAL

NORTHERN CAPE
MPUMALANGA

WESTERN CAPE
EASTERN CAPE
Non-

NORTH WEST
personnel

FREE STATE
84%

GAUTENG
LIMPOPO
funding

82% Personnel
funding
Personnel cost as % of total PED budget

80%
In 2016/17, KwaZulu-Natal spent the CHALLENGES WITH THE Limpopo and KwaZulu-Natal in particular
highest portion of its budget on personnel ALLOCATION OF TEACHER POSTS overspending their personnel budgets.
costs, followed by Limpopo and Eastern Although the above graphs show that This has been due in part to a failure to
78% Cape. This figure shows that there is a most provinces currently spend 80% plan and implement procedures to redeploy
80:20 big difference in the amount of money or less of their total education budgets teachers from rural schools experiencing
Linear (GP) that Gauteng and Western Cape have on personnel costs, this is largely due to decreasing learner populations to schools in
76% available in their budgets for non- the rise in conditional grants in recent urbanising areas with population growth.
Linear (WC)
personnel costs, compared to KwaZulu- years, which have boosted provinces’ The DBE commissioned a report in
Linear (NW)
Natal, Limpopo and Eastern Cape. non-personnel budgets. Without 2013 on provincial post provisioning
Linear (NC) This means that Gauteng and conditional grants, personnel costs would allocation and expenditure. This followed
74% Linear (MP) Western Cape have more money – after constitute over 90% of PED expenditure sharp increases in personnel costs that led
Linear (LP) compensating their employees – to in KwaZulu-Natal and Limpopo. to overspent personnel budgets, which
Linear (FS) spend on other school expenses such Over time, the system of provincial caused other education obligations,
72% Linear (KZN) as improving school infrastructure and post allocation has led to disparities such as textbooks in Limpopo, to go
2012/13 2013/14 2014/15 2015/16 2016/17 providing other resources for their schools. between provinces, with Eastern Cape, underfunded. That report revealed
Linear (EC)

62 Basic Education Rights Handbook – Education Rights in South Africa – Chapter 2: Funding Basic Education Basic Education Rights Handbook – Education Rights in South Africa – Chapter 2: Funding Basic Education 63
 ...every school in the
country is ranked
into quintiles (each
representing one
fifth of schools)
based on the
income and wealth Norms and standards for post Table 2.6: The quintile system.
of the community provisioning should also be established,
Quintile one ( poorest 20%) Fee free
that surrounds
to ensure that provinces have effective
personnel-to-non-personnel and Quintile two Fee Free
each school. educator-to-support staff ratios in place.
Quintile three Fee Free
PEDs should be trained to initiate
procedures set out in Collective Quintile four Fee charging
Agreement No. 2 of 2003 governing the
significant overspending on personnel • Pressure from unions has also led to Standards for School Funding called transfer of serving educators in terms of Quintile five (wealthiest 20%) Fee charging
costs in nearly all provinces. The National rising wages at the provincial level for enhanced data collection back operational requirements. Among other
Education Evaluation and Development that exceed incremental increases in 1998; these shortcomings and things, that agreement requires provincial In 2005, the Education Laws The quintile system
Unit (NEEDU) has attributed the awarded at the national level subsequent reports of poor funding- heads of department to inform schools Amendment Act (Act No. 24 of 2005) Under the NNSSF, every school in the
rise in personnel expenditures to: • Failure to follow national post allocation mechanisms demonstrate of educator-post establishments, and amended the Schools Act to provide country is ranked into quintiles (each
• Growth in urbanisation, leaving provisioning policies causes provinces that these systems are still not in place. empowers provinces to reduce posts to for a process to establish norms and representing one fifth of schools)
rural schools with declining learner to implement unaffordable post- schools based on learner-enrolment rates standards for school funding, by means of based on the income and wealth of
populations but static teacher posts, due establishment models. The Deloitte In order to overcome these challenges, and operational requirements, as well a quintile system that seeks to categorise the community that surrounds each
to refusal by teachers and unions to move report concluded that rather than first the DBE should improve systems used as laying out procedures for transferring schools according to poverty rankings. school. Schools located in the poorest
posts to schools where they are more determining the personnel-to-non- to track the allocation of teacher posts, educators made excess as a result of The National Norms and Standards communities are classified by PEDs (based
needed. This causes urban schools to hire personnel and teacher-to-support teacher and administrator vacancies at post provisioning determinations. for School Funding (NNSSF) were mainly on national data) as Quintile 1, all
temporary teachers, resulting in provincial staff ratios, and then dividing the schools, and school staffing needs. These The role of organised labour in the subsequently gazetted in 2006, to regulate the way to schools serving the wealthiest
systems having to pay excess teachers. educator budget by the average systems should either be funded by the post provisioning process should also be non-personnel funding in South Africa. communities which are classified as
NEEDU has estimated that at least half cost of an educator, overcommitted DBE directly or through conditional grants reviewed, to ensure that the interests of The NNSSF provide for greater levels Quintile 5. The area surrounding the
of the 48 124 temporary teachers in the provinces start with the number of to provinces. The push for all PEDs and learners are of paramount importance of non-personnel funding to schools school that is used for this classification
system are effectively double-parked educators they intend to hire without schools to be fully and accurately using when provinces make post provisioning serving poor communities, to compensate is usually (but not always) the same
• Pressure from interest groups, regard for cost, and then determine the South African School Management determinations. The legal developments in them for revenue they do not collect as the school’s catchment area.
especially trade unions, has led to the personnel-to-non-personnel and and Administration System (SA- respect of post provisioning are discussed through school fees. This funding is The idea behind the quintile
undue influence on the process of post teacher-to-support staff splits after SMAS) is a good start in this regard. in detail in Chapter 14 of this handbook. used to pay for non-personnel expenses, system was to ensure that non-
provisioning through the mandated determining the costs of educators The national government should including learning and teacher-support personnel costs would be distributed
consultation process. As a result of • Lack of timeous and accurate data also enact provincial reporting materials such as textbooks; libraries to schools on a progressive basis, in
this process, trade unions have been collection at the national level, and no regulations, so that monitoring of NON-PERSONNEL FUNDING and laboratory equipment; stationery; order to ensure redress and promote
able to exert pressure on PEDs to universally used online system aligned teacher-post allocations can take place After conditional grants and personnel school maintenance and repairs; IT greater equality in access to quality
maintain constant or increasing teacher to a clear, gazetted post provisioning at a national level, and irregularities funding, provinces have between 10% and and internet access; and essential schooling. To achieve this, the poorest
numbers, regardless of provinces’ policy. The Deloitte report points can be identified and addressed prior 20% of their equitable-share allocations services such as telephones, security, schools would therefore receive more
needs or budgeting allowances. out that the National Norms and to the start of the school year. left to spend on non-personnel costs. electricity and water and sanitation. funding than wealthier schools.

64 Basic Education Rights Handbook – Education Rights in South Africa – Chapter 2: Funding Basic Education Basic Education Rights Handbook – Education Rights in South Africa – Chapter 2: Funding Basic Education 65
 NO-FEE SCHOOLS 3 schools as no-fee schools means that 2006, before this policy had come into funding, these figures are a serious to pay school fees, or to go through SCHOOL-FEE EXEMPTIONS
The system described above was supposed in the 2014 updating of the NNSSF, the effect, to 65.4% in 2014 (Statistics SA concern and require further investigation the rigorous process of applying for fee The Schools Act contains redistributive
to work on the basis that all schools were quintile formula for non-personnel (StatsSA), 2014). Provincially, 92% of to ascertain the source of the problem exemptions, which can in turn cause their mechanisms that enable learners from
able to charge fees, and that schools funds to be distributed to schools learners in Limpopo and 81.5% of learners and determine a viable solution.’ schools to be inadequately funded. poor households to attend fee-charging
in wealthier areas which were able to would then be at an equal level for in the Eastern Cape attended no-fee Additional concerns have been Despite the significant expansion schools through fee exemptions. These
generate the most income through fees quintile 1, 2, and 3 schools, as follows: schools in 2014, while 40.7% of learners raised around how schools have been of access to no-fee schools, school fees exist in order to allow the Schools
would therefore receive the least funding • Quintile 1 schools receive 27% in the Western Cape and 45.3%% of classified into quintiles, and whether (in addition to other schooling costs) Act to achieve its stated purpose: to
from the state. Meanwhile, schools in of non-personnel funding learners in Gauteng pay no school fees. the system adequately allocates no-fee continue to act as barriers to learner ‘redress past injustices in educational
poorer areas that were not able to generate • Quintile 2 schools receive 27% Learners who attend no-fee schools status and commensurate funding to all enrolment, and have been found to provision [and] provide an education of
significant income through fees would of non-personnel funding continue to have educational costs by schools serving poor learners. Because contribute to South Africa’s high drop-out progressively high quality for all learners’.
receive more funding from the state. • Quintile 3 schools receive 27% way of school uniforms, books, stationary the quintile classification is based on rate prior to the completion of grade 12. The Schools Act prohibits schools from
However, in 2009 all schools in quintiles of non-personnel funding and transportation. Moreover, there have the socio-economic conditions of the The 2014 General Household Survey refusing a learner admission to a public
1, 2 and 3 where classified as ‘no-fee’ • Quintile 4 schools receive 14% been reports of quintile 1 to 3 schools surrounding school communities, found that 23.5% of persons aged 7 to school on the grounds that the applicant’s
schools. This classification prohibited of non-personnel funding continuing to charge school fees, despite rather than the circumstances of the 18 cited ‘no money for school fees’ as parent is unable to pay the school fees
the SGBs of these schools from charging • Quintile 5 schools receive 5% their no-fee classification, indicating that learners who actually attend the schools, the main reason for not attending an determined by the SGB. Section 40 of the
fees, though such a school is still able of non-personnel funding. improved monitoring systems need to be there is concern that schools which education institution. This figure indicates Schools Act provides that partial or total
to accept voluntary contributions from developed and implemented to ensure primarily serve poor learners in areas that issues surrounding school fees, fee exemptions must be made available
parents and other parties interested No-fee schools are entitled to receive that attendance at no-fee schools is not adjacent to wealthier neighbourhoods including quintile determinations, should to parents unable to pay school fees.
in the well-being of the school. a minimum per-learner amount of predicated on school fees or other costs. will be incorrectly classified. be further explored, and that no-fee and Fee-paying schools are not
The then-Department of funding, which is known as the ‘no-fee This problem occurs particularly in fee-waiver policies and implementation compensated for admitting fee-
Education explained this decision threshold’. This minimum amount of urban areas where informal settlements or efforts should be enhanced and exempt learners. Non-paying learners
in the Amended NNSSF: funding is supposed to ensure that these CHALLENGES WITH NO-FEE SCHOOLS townships are situated near wealthier areas. monitored to ensure that learners are are thus effectively subsidised by
Ironically, given the emphasis on redress schools have enough funding to cover AND THE QUINTILE SYSTEM The quintile system therefore ignores the able to complete their schooling. learners whose parents are able
and equity, the funding provisions of the non-personnel costs. In 2016, the no-fee The DBE’s 2011 School-Monitoring Survey reality that many learners travel from poorer Issues surrounding school fees and to afford to pay school fees.
[Schools] Act appear to have worked thus threshold of minimum funding was set Report (published in 2013) revealed communities to schools that are equipped other school costs should be further In 2006, the Department of Education
far to the advantage of public schools
patronised by middle-class and wealthy
at R1 175 per learner. Quintiles 1, 2 and troubling information showing that with better-qualified teachers and facilities. investigated, to better understand how amended the Regulations Relating to the
parents. The apartheid regime favoured 3 schools must therefore receive funding nationally, 53% of learners attended Another problem is that the DBE uses quintile determinations may better reflect Exemption of Parents from Payment of
such communities with high-quality from PEDs at this minimum amount, while schools that were not funded at the census data to determine each school’s the poverty characteristics of the actual School Fees in Public Schools. Among
facilities, equipment and resources. quintile 4 schools must receive at least minimum level of per-learner funding or poverty score, which often quickly learners who attend schools, and not just other things, those regulations set out
Vigorous fund-raising by parent bodies,
R588 per learner, and quintile 5 schools higher. This problem was most acute in becomes outdated in areas with high the characteristics of the surrounding the procedures that must be followed by
including commercial sponsorships and
fee income, have enabled many such must receive at least R203 per learner. Mpumalanga, Eastern Cape, KwaZulu- rates of migration. The result is that many school communities. Findings should be parents and SGBs when parents apply for
schools to add to their facilities, equipment The development of no-fee-school Natal and Limpopo. The DBE’s report schools have learner populations that do used to implement improved measures partial or total school-fee exemptions,
and learning resources, and expand their policies has nevertheless resulted in a concluded: ‘Considering that the Quintile not necessarily reflect the populations that ensure that all learners have access and entitle parents to full exemption if
range of cultural and sporting activities. significant increase in learners who do 1, 2 and 3 schools are non-fee schools and of the surrounding communities. This to no-fee schools, or are able to gain fee school fees account for more than 10%
The establishment of quintile 1 to not pay school fees: from just 2.9% in completely dependent on government shortcoming causes poor learners either waivers at schools that do charge fees. of the combined annual gross income

66 Basic Education Rights Handbook – Education Rights in South Africa – Chapter 2: Funding Basic Education Basic Education Rights Handbook – Education Rights in South Africa – Chapter 2: Funding Basic Education 67
 South Africa’s courts have
recognised the rights of
learners with disabilities to
access basic education services,
despite government claims
that budgetary constraints
prevent immediate universal
implementation of inclusive
educational policies.

of the learner’s parents. The regulations public and private schools. In 2014, FUNDING FOR LEARNERS all MECs to take all reasonable measures to Nor do they provide performance authorities to ensure that every child
further automatically exempt certain 7.2% of learners benefited from fee WITH DISABILITIES ensure that the physical facilities at public benchmarks outlining the extent to in the Western Cape who is severely
children from paying school fees, including reductions or partial bursaries (StatsSA, While Section 3 of the Schools Act schools are accessible to disabled persons. which inclusive education programmes and profoundly disabled has affordable
orphans in orphanages and child-headed General Household Survey, 2015). makes basic education compulsory The Department of Education must be made available to learners. access to basic education of an adequate
households, learners whose parents Provincial education departments for learners aged 7 to 15 or through published its ‘Education White Paper South Africa’s courts have quality. The province was also directed
receive a social grant on their behalf should take steps to ensure that schools Grade 9, it carves out an exception for 6 on Special Needs Education: Building recognised the rights of learners with to adequately fund organisations capable
such as the Child Support Grant, and are acting transparently and appropriately compulsory attendance for learners with an Inclusive Education and Training disabilities to access basic education of carrying out the court’s directive,
learners in the care of foster parents. when making admission and fee- special education needs, by empowering System’ in 2001. The White Paper services, despite government claims provide appropriate transportation and
Questions remain over whether schools waiver determinations, particularly the Minister of Basic Education to set commits to building an inclusive that budgetary constraints prevent make provision for training of persons to
that have an interest in admitting fee- given the incentive that schools have the age of compulsory attendance for education and training system capable of immediate universal implementation provide education for children with severe
paying learners are acting appropriately to deny admission to learners who special-needs learners. At the time of accommodating and supporting learners of inclusive educational policies. and profound intellectual disabilities.
when determining whether to admit poorer are unable to pay school fees. publication of this manual, the Minister with a diverse range of special needs, In Western Cape Forum for Intellectual The Schools Act should be amended to
learners and approve fee exemptions. Measures should include the of Basic Education had yet to determine and provides a framework governing Disability v Government of the Republic of explicitly provide for free and compulsory
Also, Section 40(2) of the Schools Act development of databases used to track the age for compulsory attendance the establishment of the special-needs South Africa and Another, the applicant education for learners with disabilities.
entitles parents who have been denied admission and fee-waiver applications for learners with special needs. education system, along with funding sued the government on behalf of learners There should also be requirements for
fee exemptions to appeal the SGB’s to schools, demographic information Moreover, unlike Section 3(3) of the strategies necessary for implementation. with severe intellectual disabilities who provincial education departments to report
decision to the head of department. about applicants applying for admission Schools Act, which requires the MEC for Children with moderate disabilities had been denied access to schools annually on the extent to which they are
Katarina Tomaskevski, the United and fee waivers, and admission and education in each province to ensure are accommodated at full-service schools, capable of meeting their needs, due accommodating learners with disabilities,
Nations Special Rapporteur on the fee-waiver determinations made by that there are a sufficient number of which are essentially ordinary public to the government’s failure to fund the number of learners with disabilities
right to education, questioned the schools. Education districts should school places available for every child schools equipped with additional specially and provide schools for learners with who are not being accommodated, and
validity of these safeguards, because ‘the monitor determinations made, and to attend school, Section 12(4) seeks to trained personnel, infrastructure and profound intellectual disabilities. their plans detailing how they intend to
procedure [to help poor parents get an proactively offer support to parents dilute the right to basic education for other resources needed to accommodate The Western Cape High Court accommodate learners with disabilities in
exemption] assumes that all parents are of learners who have been improperly learners with disabilities by obligating the learners requiring specialised support. found that the government’s failure to the future. Schools should be monitored
literate and can cope with the necessary denied admission or fee-waivers. MEC to provide education for learners Learners requiring highly intensive support adequately fund and provide special-needs regularly to ensure that they are staffed
paperwork, which is not the case.’ Further efforts should also be made with special education needs at ordinary are accommodated at special schools. education for these learners violated with the requisite number of educators
While 6.7% of learners in 2013 by national and provincial education public schools, and provide relevant Policies on inclusive education have their rights to a basic education, to who are qualified to screen, identify
reported benefiting from total or partial departments to ensure that parents educational support services for such made little provision for how programmes protection from neglect or degradation, and support learners with disabilities.
fee exemptions or partial bursaries, this understand their rights when it learners ‘where reasonably practicable.’ for learners with disabilities would be to equality, and to human dignity. The Inclusive education policies should be
figure includes learners attending both comes to applying for fee waivers. Section 12(5) of the Schools Act obliges funded by provinces and/or the DBE. court ordered national and provincial improved, to better guide provinces in

68 Basic Education Rights Handbook – Education Rights in South Africa – Chapter 2: Funding Basic Education Basic Education Rights Handbook – Education Rights in South Africa – Chapter 2: Funding Basic Education 69
 While many
independent
schools charge
high fees, in
recent years
there has been
a rise in low-
fee independent
schools.

terms of their roles and responsibilities to INDEPENDENT-SCHOOL school is based on its level of fees, with Figure 2.10: Independent school subsidies as a percentage of equitable share spending by PEDs, 2012/13 – 2016/17.
ensure that learners with disabilities are FUNDING POLICIES schools charging the lowest fees receiving
identified and adequately accommodated. The Schools Act recognises two categories the highest subsidy. The subsidy is not 1.8%
Enhanced policies should specifically of schools: public and independent. allowed to be more that 60% of the

Independent school subsidies as

address the types of educational facilities While public schools are controlled by equivalent cost of public schooling.

% of equitable share spending

and accommodations that must be made the government, independent schools are This means that independent schools 1.3% Linear (EC)
available to learners with disabilities, privately managed. Independent schools which charge fees that are 2.5 times Linear (GP)
and should detail the specific resources are therefore often referred to as ‘private’ higher than the provincial public-school Linear (WC)
that must be available to learners with schools. Around 4% of learners in South average cost per learner do not receive 0.8% Linear (MP)
disabilities and schools serving them, Africa attend independent schools. any subsidies from the government. Linear (NC)
such as support staff and teacher post While all independent schools While many independent schools Linear (FS)
provisioning allocations and qualifications, rely on fees as their main source of charge high fees, in recent years there has Linear (KZN)
0.3%
transport and hostel accommodation, funding, many also receive subsidies been a rise in low-fee independent schools. Linear (LP)
and school infrastructure. Norms from provincial education departments. This has been driven by a perception 0% Linear (NW)
and Standards should be developed These subsidies are relatively small among parents, educators and investors 2012/13 2013/14 2014/15 2015/16 2016/17
to address how these facilities and compared to the amount of funding in these schools that public schools,
ordinary schools should be funded to that is provided to public schools. In especially in poorer areas, are failing
accommodate learners with special needs, addition, only independent schools that to provide a quality education. Figure 9 shows that Gauteng spends Other provinces spend between 0.1% and Eastern Cape have been spending
and supported by districts and qualified are registered with provincial education Figure 2.9 on the next page shows how more of its education equitable share to 0.6% of their education equitable an increasing portion of their share on
district officials. Legal developments in departments and operate on a non- much of their education equitable share on independent school subsidies than shares on subsidies for independent independent-school subsidies, these
respect of learners with disabilities are profit basis are entitled to subsidies. provinces spent on independent-school other provinces, totalling around schools, with Mpumalanga spending subsidies remain a very small part of
discussed in Chapter 5 of this handbook. The subsidy available to a qualifying subsidies between 2012/13 and 2016/17. 1.7% of equitable-share spending. the least. While Free State, Limpopo their total education spending.

70 Basic Education Rights Handbook – Education Rights in South Africa – Chapter 2: Funding Basic Education Basic Education Rights Handbook – Education Rights in South Africa – Chapter 2: Funding Basic Education 71
 Daniel McLaren is a senior CASES SOURCE MATERIAL AND
researcher at the Studies in Poverty FURTHER READING
and Inequality Institute (SPII). Western Cape Forum for Intellectual
Disability v Government of the D McLaren Within its available
Republic of South Africa 2011 (5) SA resources: Socio-Economic Rights

CONCLUSION: TOWARDS
87 (WCC); 2010 ZAWCHC 544. and the National Budget, 2016.
S Franklin & D McLaren Realising the
right to a basic education in South

EQUITY IN SCHOOL
CONSTITUTION AND Africa: An analysis of the content,
LEGISLATION policy effort, resource allocation
and enjoyment of the constitutional

FUNDING
Constitution of the Republic
of South Africa, 1996. right to a basic education, 2015.
South African Schools Act 84 of 1996. Deloitte National Implementation
of Post Provisioning, 2013.
National Education Policy Act 27 of 1996.
Government has to make the budget process as transparent as possible, Employment of Educators Act 76 of 1998.
National Education Evaluation and
Development Unit NEEDU National
and ensure that members of the public can provide input and are listened Education Laws Amendment Report 2013: Teaching and Learning
Act 24 of 2005. in Rural Primary Schools, 2013.
to. This chapter should help those who are working in, or have an interest Division of Revenue Act N Mtshali No-fee school forcing
in education funding, to understand the education budget process and (enacted each year). parents to pay iol News, 2013.
Appropriation Act (enacted each year). Parliament of the Republic of South
advocate for changes that will promote the right to basic education. Africa Budget Analysis Manual, 2011.
K Tomasevski State of the Right
Ultimately, education funding must and most disadvantaged schools Provincial education departments must POLICY AND GUIDELINES to Education Worldwide – Free or
be judged against the aims and spirit • Norms and standards for post ensure that learners are being funded Fee: 2006 Global Report, 2006.
Department of Basic Education ‘Report on
of the Constitution, which guarantees provisioning should be established at minimum levels, and the DBE must the National School Monitoring Survey: Statistics South Africa General
equal access to quality education to ensure that provinces have use its oversight role to monitor and DBE013 Conducted in 2011’, 2013. Household Survey 2015, 2016.
for all. This requires relatively more effective personnel-to-non-personnel enforce compliance with these
Department of Education ‘National Norms
funding by the state for poorer and cost and educator-to-support staff • Provincial education departments and Standards for School Funding’, 2006.
historically disadvantaged schools, in ratios in place. Provincial education must take steps to ensure that
order to improve the teaching and departments should be trained to schools are acting transparently Department of Education ‘Regulations
Relating to the Exemption of
learning taking place at those schools. initiate procedures set out in Collective and appropriately when making
Parents from Payment of School
Some of the key issues in that regard Agreement No. 2 of 2003 governing determinations on applications for fee
Fees in Public Schools’, 2006.
which this chapter has explored are: the transfer of serving educators in waivers. Education districts should
• The equitable-share formula terms of operational requirements. monitor determinations made, and Department of Education ‘Post
Distribution Model for the Allocation
that divides revenue between the The role of organised labour in the proactively offer support to parents
of Educator Posts to Schools’, 2002.
provinces needs to take account of post provisioning process should of learners who have been improperly
the relative poverty and unequal also be reviewed, to ensure that the denied admission or fee waivers. Department of Basic Education ‘Education
starting points of schools in different interests of learners are of paramount Further efforts should also be made White Paper 6: Building an Inclusive
provinces, and the unequal costs importance when provinces make by national and provincial education Education and Training System’, 2001.
of providing education in rural and post provisioning determinations departments to ensure that parents Department Education, ‘Creation of
urban settings. This would result in • Poverty classifications of schools understand their rights when it Educator Posts in a Provincial Department
education funding to provinces that should better reflect the poverty comes to applying for fee waivers. of Education and the Distribution of Such
would promote the redress required characteristics of the actual learners • Norms and Standards should be Posts to The Educational Institutions
by the Constitution, better enabling who attend those schools, and not just enacted to address funding for of Such a Department’, 1998.
provinces to uplift their poorest those of the surrounding communities. learners with disabilities.

72 Basic Education Rights Handbook – Education Rights in South Africa – Chapter 2: Funding Basic Education Basic Education Rights Handbook – Education Rights in South Africa – Chapter 2: Funding Basic Education 73