The EBS Chancellor's View on the Educators' Strike from an Entrepreneur's Perspective

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Teachers are on strike, and with good reason, but it's not just about money, or even a lack of it. Mart Habakuk, the Chancellor of EBS, views the strike of educational workers through the prism of an entrepreneur who has been able to manage Estonia's oldest private university sustainably and effectively.

Mart Habakuk: “I have always believed that financing a school is the responsibility of the school provider. In Estonia, there are 79 such providers, cities and municipalities, each with their own school network, in addition to state and private schools. They receive funding from various sources, primarily from the state budget. Regulations establish minimum requirements and limitations on the use of these budgetary funds. The current strike is aimed at the government's policies, skipping over the school provider, who is directly responsible for the quality, efficient operation, and financing of their school network. Certainly, some providers could fulfill the striking teachers' demands without additional funds from the state budget. Some have already done so, while others let teachers quietly fight to increase their budgets. 

 

Kaire Põder, an EBS professor and co-author of a study on the efficiency of Estonian schools and school networks*, reveals in her analysis that expenditures per student vary greatly among cities and municipalities. In 2022, the costs were lowest in Narva (3,796 euros), Tallinn (4,048 euros), and Rakvere (4,066 euros). The highest costs were in Ruhnu municipality, at 22,251 euros per student per year, followed by Vormsi and Kihnu at 13,150 and 10,260 euros, respectively. The average cost per student in Estonia was 5,092 euros, 67% of which was for staff salaries. Only 15 out of 79 cities and municipalities spent less than the national average per student. These were mostly larger cities and their neighbouring municipalities, where there are greater opportunities to invest in their school networks outside of the state budget. There are reserves in the system. I think collaboration and resource sharing between schools are still limited, the teachers' career model does not enhance the profession's prestige, and the remuneration principles do not address pain points or support progression to the next level on a reasonable career path. 

 

The issue is certainly important, but defining the problem solely in monetary terms, presenting it as a problem for all school providers, and the hypothesis that the only solution is additional funding from the state budget is too simplistic and does not consider the current economic situation in the country. The Estonian economy has been shrinking for seven consecutive quarters, and this may not be the bottom. In such circumstances, raising taxes is as effective as whipping an exhausted horse. 

 

A systematic approach to a solution could begin with the teachers' career model and the school provider's vision for their school network in 2034. This would be followed by creating an action plan to achieve the desired outcome, along with projections of cash flows. Finally, a funding agreement that supports the school provider's long-term goals and Estonia's regional policy. The rest is something the school provider and school community should be able to manage on their own.”

 

 

*https://arenguseire.ee/wp-content/uploads/2023/11/2023_koolide-ja-koolivorgu-efektiivsus_uuring.pdf