Areas Addressed in the Presentation

1. Department of Education16 October 2007Presentation to Portfolio CommitteeFFC Submission for the Division of Revenue: 2008/09

2. Areas Addressed in the Presentation • National School Nutrition Programme • Financing of School Infrastructure and Education Outcomes • Financing of Learner Support Material and No-Fee School Policy • Fiscal Implications of the Redemarcation of Provincial Boundaries • Budget Analysis: Spending Performance of Provincial Departments • Comments on Division of Revenue: Review of Equitable Share Framework

3. National School Nutrition ProgrammeFFC Recommendations • All PEDs to adopt NSNP as their full responsibility • Full coverage of primary school learners • Improve programme implementation through increased personnel numbers and skill levels • Implementation in no-fee schools • Development of National norms • Improved quality of information • Supplementation of conditional grant through provincial equitable share allocations • Improvements in procurement procedure • Improvements in equipment and facilities • Improve monitoring and evaluation capacity • Increase number of feeding days • Increase per learner per day feeding amount

4. National School Nutrition ProgrammeComments (1) • During the Annual Review of conditional grants for 2006/07 the areas raised by FFC were also identified as concerns • From National level there is improved monitoring and evaluation • Provincial specific circumstances and challenges exist • Partly addressing concerns through a request for increased funding through 2008 MTEF input (next slide provides detail) • PEDs have adopted responsibility for the programme, although funding remains through the conditional grant route • Some areas raised involve more clients than only Education and is difficult to coordinate (such as procurement processes)

5. National School Nutrition ProgrammeComments (2) • Bid for increased funding in 2008 MTEF The following areas are addressed: • 15% Average increase of feeding cost per learner • Expand coverage to all no-fee schools (primary and secondary) • Increase mandated number of feeding days to cover all school days • Proposal provides for an average cost per meal of R1,50 • Immediate increase in number of feeding days from the current mandated 156 days to 198 days • Proposed immediate expansion to cover all no-fee primary schools (2 434 schools/approximately 2,4 million learners) • Proposed phased in coverage of no-fee secondary schools over a three year period due to high cost implications and to ensure successful implementation (4 252 schools/approximately 1,5 million learners) • Implementation subject to additional allocation that would be received over the MTEF

6. National School Nutrition ProgrammeComments (3) Summary of Increased Financial Implications for 2008 MTEF

7. Financing of School Infrastructure and Education Outcomes FFC Recommendations • Conditions of PIG targeting educational infrastructure should specify requirements for provinces: Funds to be used to support areas of need and where school outcomes could most likely be improved • Effective coordination of planning for various provincial and municipal infrastructure grants to ensure optimal outcomes from school infrastructure investment

8. Financing of School Infrastructure and Education Outcomes Comments (1) The impact of infrastructure inputs on school outputs: • The conclusion of the FFC that “infrastructure appears to matter is noted (for education outputs and quality) but its impact may not be very large” • Better data is required to estimate this impact in SA Context and will be available through the update of the School Register of Needs which is now nearing completion The human rights and equity arguments for improving school infrastructure • This is one of the prime motivators for improving information, policy and implementation with regard to school infrastructure • The DoE has strongly championed and implemented pro-poor funding of education inputs and the FFC recommendations on infrastructure will be incorporated in policy development and review

9. Financing of School Infrastructure andEducation Outcomes Comments (2) • Effective coordination of planning for various infrastructure grants to ensure optimal outcomes from school infrastructure investment supported • The continuing inequality in infrastructure between provinces and localities, with little evidence of a narrowing of gaps is supported • The update of the SRN is based on standardised, objective assessments based on school visits by independent assessors. • It will provide a much better base for planning and budgeting • Greater clarity on the conditions for the PIG and improved targeting is also supported • The Department supports the plea for improved coordination and this area and will address it in policy development and implementation

10. Financing of Learner Support Material FFC Recommendations • LTSM should be defined clearly • A separate budget for LTSM to improve monitoring and identify problems • A separate budget for maintenance, repairs and equipment

11. Financing of Learner Support Material Comments • LTSM is defined as textbooks and stationery for learners as well as teaching material for teachers including teaching guides, boards and chalk • Provincial budget statements separately specify the provision for LTSM • PEDs are required to report to the Department on the spending of LTSM • Provincial budgets specify the provision for maintenance, repairs and equipment separately • Provisions in Section 21 schools are excluded

12. No-Fee School Policy FFC Recommendations • Provincial Equitable Share should reflect socio economic profiles of learners with particular reference to the impact of income inequality and poverty • Norms and Standards that indicate the level of knowledge and skills that learners are expected to acquire at various ages and stages within the schooling system

13. No-Fee School Policy Comments • The Department notes and supports the recommendations made by the FFC

14. Fiscal Implications of the Redemarcation of Provincial Boundaries FFC Recommendations • Both the Provincial Equitable Share and the Local Government Equitable Share should be revised to take changes into account • Additional costs faced by provinces and municipalities that cannot be met through revised Equitable Share allocations should be funded through once-off allocation from National Government • Changes to boundaries should be aligned with the financial year system in Government

15. Fiscal Implications of theRedemarcation of Provincial Boundaries Comments • Comments by FFC are noted and supported • Redemarcation has in practice negatively impacted on budgets of some affected PEDs • Improved process required to determine the amounts to be shifted with functions – official requests coordinated by National Treasury would be more effective than to allow inter-provincial agreements on the shifting of funds • Equitable share to be influenced more strongly by poverty index

16. Budget Analysis:Spending Performance of Provincial Departments FFC Recommendations • For desirability of stable and predictable allocations aim should be 7-year budget allocations rather than a 3-year cycle • Policy prioritisation should be supported by higher than average annual budget growth rates • Further institutionalisation of best practice project planning and budgeting methods should be encouraged • Departmental service delivery programmes should be defined by and reported on according to: - actual and targeted beneficiaries - personnel and budget by occupational skills level - current items and capital assets utilised in service delivery • Standardised method across Government departments to measure socio economic impact of capital and current spending

17. Budget Analysis:Spending Performance of Provincial Departments Comments • Comments by FFC are noted and supported • Uniform budget programme structure for the Education sector • Annually agreed sector priorities for the new MTEF period • Agreed performance indicators for the sector • National Budget Monitoring and Support Office established • Monthly reporting to the Minister of Education

18. Education Sector2007 MTEF Allocations

19. Education Sector2008 MTEF Priorities • Sector Priorities - Infrastructure and Non-Personnel Non-Capital resourcing of Public Ordinary Schools - Inclusive Education and Special Schools - Universal Grade R - Personnel for Public Ordinary School Education • Sector Priorities approved by Minister of Education and CEM • Considered and discussed at Education/Treasury 10X10 meeting • MTEC Sector Meeting were held on 19 September 2007

20. Department of Education2008 MTEF Priorities