Education Offices Nationwide Say "Difficult to Cover Funds" to Ministry of Education Ordering 'Expenditure Restructuring'

"Budget Cuts Demand 'Project Reduction and Abolition'"
Financial Stabilization Fund Exists but Utilization Faces Difficulties

Next year's Ministry of Education budget proposal has been reduced by more than 6 trillion won compared to this year, and each metropolitan and provincial office of education is expressing difficulties in adjusting expenditures. The Ministry of Education has ordered the use of accumulated financial stabilization funds by each office of education, but the offices believe that these funds are insufficient to cover the reduced budget.

According to officials from each metropolitan and provincial office of education on the 8th, the Ministry of Education met with budget officers from the offices on the 6th and delivered the directive to "adjust second-half expenditures and utilize accumulated funds in preparation for budget cuts."

[Image source=Yonhap News]

This is due to the reduced budget allocation for next year. The Ministry of Education has allocated a total budget of 95.6254 trillion won for next year, of which the local education finance grant is 68.8859 trillion won, a decrease of 6.8748 trillion won compared to this year. The Ministry stated at the end of last month when announcing the budget proposal that "accumulated financial stabilization funds by each metropolitan and provincial office of education will be utilized."

However, officials from the offices of education have responded with bewilderment. It is not only difficult to restructure expenditures immediately, but the accumulated funds are also insufficient to cover the budget shortfall.

An official from the Seoul Metropolitan Office of Education said, "We have set a basic policy to reduce project expenses by more than 30% in each department," adding, "We will adjust by postponing non-urgent new projects." He continued, "For major projects that must be executed, such as protecting teachers' rights, we may need to revise plans after seeing the actual amount allocated to the office of education following the confirmation of the Ministry of Education's budget for next year."

An official from the Gyeongbuk Office of Education said, "Urgent projects related to the curriculum or student accommodation must be executed even if the budget is cut, while relatively non-essential projects will likely be reduced or abolished," adding, "For example, in the case of educational facility projects, we plan to adjust everything except those that require immediate construction or directly affect on-site education."

An official from the Jeju Office of Education also explained, "We are currently in a situation where we must first adjust expenditures for the second half of this year and then decide whether to use the financial stabilization funds."

In addition, each metropolitan and provincial office of education states that utilizing the financial stabilization funds is not easy. The Ministry of Education understands that each office holds financial stabilization funds ranging from about 30 billion won to over 1 trillion won. However, according to the ordinances of each office, the funds cannot be used in excess of 50% of the total accumulated amount for each fiscal year. Given the expected continued decline in tax revenues, it is difficult to withdraw large amounts from the funds immediately.

The Seoul Metropolitan Office of Education has allocated about 1.6 trillion won in financial stabilization funds this year, but the actual collected funds amount to 200 billion won, making it highly likely that there will be a deficit of over 900 billion won. An official from the Seoul Metropolitan Office of Education said, "The actual usable amount is about 300 billion won," adding, "It is impossible to cover the reduced budget solely with the funds."

An official from the Gyeongbuk Office of Education also said, "We are considering whether it is appropriate to cover the shortage of grants with the financial stabilization funds," explaining, "The use of funds is not a matter that the office of education can decide alone and requires consultation with the city council."

This content was produced with the assistance of AI translation services.