Schools have less money left

Educational institutions had less money left in 2008 than in 2007. Schools for secondary vocational education (mbo) recorded a negative result for the first time in ten years. Primary education achieved a positive result due to revenue from interest.

Lower results for all sectors in education

Altogether, educational institutions received more money than they spent in 2008. The net result was 260 million euro, but this is almost half the amount in 2007. All sectors in education had less money left. Universities had a marginally lower result relative to last year, the most dramatic decline was recorded in primary education. Mbo schools finished in the red.

Result educational institutions

Secondary vocational education in the red

Secondary vocational education had a negative result of 26.5 million euro in 2008, as against a positive result of 20.4 million euro in the previous year. Mbo schools paid an extra 7 percent on wages and salaries in 2008, which was only partly (4 percent) compensated for by the government.

There are major discrepancies between the various mbo institutions. In total, 36 mbo schools out of 64 were cost-effective. Among them, 15 institutions had a cost-effectiveness of 3 percent or more. There were also 15 mbo schools with a cost-effectiveness level below -3 percent.

Cost-effectiveness mbo schools

Positive result primary education due to revenue from interest

By the end of 2008, schools for primary and special education had 60 million euro left, as opposed to 185 million euro in 2007. Without income from interest, the 2008 results would have been negative. In previous years, many schools in primary education increased their net worth and saved money in bank accounts (liquid assets). The relatively poor results in 2008 put an end to this situation.

In primary education, the poor results are partly caused by an increase in wage costs. Schools in primary education also tend to hire more staff from outside. The costs of hiring external staff are usually higher than the costs of permanent staff.

Net worth and liquid assets in primary education

Marcus Driessen

Source: Sector education spent 800 million euro on temps in 2007