On 1 September 2018, the funding model for pre-school, pre-primary and general education was changed. It shifted from the ‘money follows the learner’ principle or the ‘pupil’s basket’ to a mixed model. It is based on coherence between the basic education costs basket and the implementation of curricula. Usually it is called the ‘class basket’. The ‘pupil’s basket’ method had been implemented in general education schools since 2002. In pre-primary education it had been implemented since 2003, in pre-school education since 2011.

Approximately 80% of funding is allocated not to each pupil in the class but according to the size of the class. A small percentage is allocated to textbooks and other education supplies according to the actual number of pupils. This major part is allocated as a targeted subsidy for schools. The municipalities allocate less than 20% of the funds to the organization and management of the education process, education aid, the assessment of learning achievements, etc. All state, municipality and private schools receive the ‘class basket’ funds. Other than these funds, the state and municipalities allocate housekeeping funds to their schools. Private schools can raise money by charging tuition fees, obtaining it through private sponsorship, etc. The Government sets the rules for funding.

Vocational education and training institutions as well as higher education institutions are funded on the principle of the ‘money follows the pupil’, popularly called the ‘pupil’s basket’ or ‘student’s basket’. In vocational education and training, it was introduced in 2004 and in higher education in 2009. This is a fixed state subsidy that is calculated according to the number of pupils/students at the beginning of a school year.

In 2011, a pilot project aimed at testing the principle of the non-formal education pupils’ basket was implemented in five municipalities. On the grounds of the experience gained and the results of the project, the non-formal education pupil’s basket was introduced in October 2015.