1 Intergovernmental Fiscal Review Presentation to Select Committees of Finance, Social Services, Education and Recreation 17 October 2007 DEPARTMENT OF EDUCATION

2 IGRF This comprehensive review for the period 2003/4 to 2009/10 of the fiscal situation on provinces welcomed. The review is very clear and succinct and does accurately reflect the situation. We acknowledge that relatively on world wide comparisons we are well resourced in education yet perform poorly. We acknowledge provincial inequalities from 1995 continue to become overcome, however… Without repeating what’s in the report, this presentation raises some concerns about the outcomes of the report especially in regards to legacies and provincial equity

3 Concerns While real growth in education expenditure is noted, it is not sufficient. Education expenditure 5.4% of GDP – while comparable internationally it has dropped from about 6.3% in Total education spend as a proportion of total government expenditure has declined from 22.6% in 1995 to 17.7% in 2006 (using the UNESCO methodology of total government exp including local government) National and Provincial Education spend as a proportion of only national and provincial government expenditure has declined from 27.9% to 20.0% In both cases it continues to decline going forward.

4 Concerns Falling shares of education expenditure from a share of 51% to an actual of 45.7% declining to 41.8% over the period 2003/4 to 2009/10 Yet backlogs in infrastructure, school allocations, class sizes, text books, grade R, ABET persist, Per capita ( grade R) in 2009/10 for grade R is R1253 as opposed to a per capita for ordinary schools of R9045. Thus grade R funding is currently inadequate and additional funds are required into the next budgeting process. Inter-provincial inequalities in education while narrowing from 1995 continue to be present. South Africa’s performance on international, regional as well national assessments are worrying.

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7 Priorities Increasing participation in the measurement of education outputs through international, regional as well country assessments. Expansion of universal assessment to every school (frequency and target group) Increasing teacher remuneration and rewards - on the table through the Occupations Specific Dispensation National Framework for Teacher development – improving continuous professional development and pre-service training of teachers. National Education Evaluation Unit – Independent evaluation of teacher performance using learner performance as an entry point. Teacher Recruitment especially in Mathematics and Science while reskilling and retooling current employees Revitalization of Special Schools Improve funding and delivery of school infrastructure Provide additional and meaningful resources for Grade R and ECD (0-4 years) Explore using ICT’s in education

8 Provincial Inequalities Learner Educator ratio’s Conditions of schools No fee school allocations Per Capita Expenditure

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14 THANK YOU

15 > The policy trajectory  A use of the inter-provincial poverty distribution to determine how much pro-poor funding in each province. THE POVERTY TABLE National quintiles 1 (poorest) 2345 (least poor) Total Eastern Cape 35%22%21%12%11% 100% Free State 31%15%20%19%15% 100% Gauteng 11% 27% 24% 100% KwaZulu ‑ Natal 24%19%26%17%14% 100% Limpopo 34%22%25%12%7% 100% Mpumalanga 17%20%30%20%14% 100% Northern Cape 26%18%22%15%20% 100% North West 23%15%31%21%11% 100% Western Cape 7%8%23%28%35% 100% South Africa20% 100%

16 > Budgetary issues  Gradual and uneven increase in per capita spending over the longer term  In real terms, spending on the average public ordinary school learner will be 30% higher in 2007 than it was in 1994.

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19 Figure 1: Total education expenditure over GNP Sources: Buckland and Fielden (1994); Budget Reviews ; Estimates of National Expenditure ; Intergovernmental Fiscal Reviews ; Provincial Budget Statements 2005 (for public expenditure); Reserve Bank website (for GNP).

20 Figure 2: Public education expenditure over total government expenditure Source: As for Figure 1 (with respect to education expenditure); Budget Reviews (for national plus provincial government expenditure); Reserve Bank Quarterly Bulletins (for general government expenditure). Note: ‘Total exp.’ means the same in this graph as in Figure 1. All government expenditure totals exclude debt repayments.

21 Figure 3: Public education expenditure over 12 age cohorts in real terms Source: As for Figure 1 (with respect to expenditure) plus DoE population projections.

22 Figure 4: School expenditure per learner in real terms Source: Buckland and Fielden (1994); Intergovernmental Fiscal Reviews ; Provincial Budget Statements ; EMIS; DoE population projections (to project enrolments beyond 2004).

23 Table 1: The education share across three levels of government /992007/08 Pool (R billion 2004 rands) % of GNP Pool (R billion 2004 rands)% of GNP GNP % % National pool % % Education portion of this %0.9% %0.7% Provincial pool % % Education portion of this %5.3% %4.6% Local government % % Education portion of this % % TOTAL % % Education portion of this %6.2% %5.4% Source: Reserve Bank website; Budget Review 2000, 2002, 2005; Intergovernmental Fiscal Review 2001; Provincial Budget Statements Note that the ‘provincial pool’ includes own revenue of provinces, whilst ‘Local government’ includes only funds from the National Revenue Fund.

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