The financing principle “the money follows the pupil” or better known as the “pupil voucher” implemented in Lithuania has been criticised for a number of years. With the decreasing number of pupils in schools, particularly in rural areas, this fails indeed to ensure equal financing. In fact, it often encourages educational establishments to compete with each other by simply reducing the requirements for students rather than improving the quality of education, as schools are interested in attracting a pupil and so the “pupil voucher”. 

Therefore, in order to address the shortcomings of this system, a “class voucher” will be launched in January 2016. The government of Lithuania adopted the methodology in October 2015 and should adopt the Resolution on the approval of the experimental methodology for calculating and distributing education funds. 

The “class voucher” methodology will be applied in pre-school, pre-primary and general education establishments. It will be tested in five selected municipalities. The essence is that education funds will be calculated per class rather than per pupil. For example, in general education schools, depending on the relative size of a class, “class vouchers” of three different values for pupils in grades 1–11 will be introduced: 

• A voucher for classes with 9–11 pupils.
• A voucher for classes with 12–20 pupils.
• A voucher for classes with over 21 pupils. 
• If there are 8 or fewer pupils in a class, a portion of the voucher will be allocated per class. 

Other funds, specifically funds for organising and managing the educational process and funds for other educational needs will be separated and calculated per pupil. The funds for organising and managing the educational process will account for 10% of the funds allocated for the implementation of the educational process. According to the methodology of the “pupil voucher”, funds for managing the educational process account for 8–20% of the entire sum of the “pupil voucher”. This sum also includes salaries for employees who organise and manage the educational process, school library personnel, and the pedagogical personnel which provides psychological, special and social pedagogical assistance. 

According to the new methodology, funds for educational assistance and the library will be separated from the funds allocated for management of the educational process and will be calculated per pupil. Two thirds of the “class voucher” funding (4–5%) allocated for schools by municipalities will have to be approved together with the municipal budget for the following year. The remaining funds will be allocated by municipalities on the needs-based principle throughout the year. 

After the evaluation of the experience and outcomes of the new education financing methodology, a decision will be made on whether it is appropriate to introduce the “class voucher” methodology in all the country’s pre-school, pre-primary and general education establishments.

Source: Lithuanian Eurydice Unit.