European Journal of Education Studies ISSN: 2501 - 1111 ISSN-L: 2501 - 1111 Available on-line at: www.oapub.org/edu 10.5281/zenodo.160695 Volume 2│Issue 7│2016 ALTERNATIVE FUNDING OF SCHOOLS IN EUROPE Evangelos C. Papakitsos1i, Xanthipi Foulidi2, Konstantinos Karakiozis3, Evangelos Theologis4, Argyrios Argyriou5 Adj. Prof. Dr., School of Pedagogical and Technological Education, 1 Department of Education, Greece Lecturer Dr., National School of Public Administration and Local Government of Greece 2 Secondary Education Directorate of West Attica, Youth Counseling Station, Greece 3 Secondary Education Directorate of West Attica, 4 Center for Counseling & Guidance of Elefsina, Greece Adj. Prof. Dr., Athens University of Economics & Business, 5 Department of Management Science & Technology, Greece Abstract: The present article investigates the alternative means of funding for schools in Europe. Because of the economic restrictions for several European countries in recent years, schools internationally seek alternatives in order to improve the current situation, beyond government funding. These alternatives are broadly classified in European Union and private-sector resources, including the concepts of Virtual Enterprise and Open School . The relevant policies of several European countries are also presented, as an example indicating that the alternative means for the funding of schools are innovative but realistic proposals. Keywords: school funding, virtual enterprise, open school 1. Instruction The state resources that are available to meet the operational needs of schools in most cases are not sufficient, due to the economic downturn in recent years for several European countries, especially in the South (e.g. in Greece, the decline of GDP reached 27% between 2008 and 2015, according to the data of ELSTAT, 2015). Meanwhile, since 2008 in Europe with the onset of the global economic crisis, a public dialogue has Copyright © The Author(s). All Rights Reserved Published by Open Access Publishing Group ©2015. 1 Evangelos C. Papakitsos, Xanthipi Foulidi, Konstantinos Karakiozis, Evangelos Theologis, Argyrios Argyriou ALTERNATIVE FUNDING OF SCHOOLS IN EUROPE commenced on a more effective management of public expenditure (Eurydice, 2014). In this context, schools internationally seek alternatives beyond government funding in order to improve the current situation. This article explores alternative means of funding for schools in Europe, based on European Union funds, private funds (cash prizes of student competitions, donations, business operations, etc.), as well as the ability of the usage or rental of the schools infrastructures by local organizations or individuals, developing Open School actions. 2. Funding of Public Education from Public European resources At the end of the 20th century, amounts recovered from European public resources began to fund the operational needs of schools. Specifically, an indirect but major funding of primary and secondary education schools was the one from the Operational Programme for Education and Initial Vocational Training (OPEIVT-I and II: Zogopoulos, 2013; Nodara & Sella, 2008; Spyropoulou et al., 2008). Under OPEIVT-I (1994-1999) of the 2nd European Union (EU) Support Framework that was also cofinanced by the European Commission, the European Social Fund and the European Regional Development Fund, several projects had been implemented to improve:      curricula; books and infrastructure of the Primary and Secondary Education; school extracurricular activities that include Environmental Education, Health Education and Consumer’s Education; the training of large numbers of teachers; the integration into the educational system of students from specific categories, such as people with disabilities (HMERA, 2000). As part of OPEIVT-II (2000-2006) of the 3rd EU Support Framework some of the actions of OPEIVT-I continued. Projects were funded:   against school drop-out with alternative forms of learning;  everyone and especially for those people that are threatened by social exclusion;  learning; for the promotion of equal opportunities for access to the labor market for for improving the initial vocational education and training as part of lifelong for the promotion of vocational guidance and the connection with the labor market. Under the Partnership Agreement for the Development Framework 2007-2013 (PADF), innovative and development programmes were implemented in primary and secondary education schools, funded by 75% from the European Union funds and 25% from national resources. The same dynamics is observed in the PADF 2014-2020, which European Journal of Education Studies - Volume 2 │ Issue 7│ 2016 2 Evangelos C. Papakitsos, Xanthipi Foulidi, Konstantinos Karakiozis, Evangelos Theologis, Argyrios Argyriou ALTERNATIVE FUNDING OF SCHOOLS IN EUROPE includes projects financed by the European Structural and Investment Funds (ESIF) of the EU. The funding of schools is possible nowadays through the Erasmus+ Programme 20142020 (IKY, 2016). This is a programme of the European Commission, which is also implemented in education, having the goal of improving the skills of teachers. The relevant “ction Learning mobility of the educational personnel offers to the personnel of public schools the opportunity of acquiring learning experiences in another country, mainly in order to improve:   the knowledge, skills and abilities of teachers within the school environment;  European countries, as well; also their language skills by knowing the civilization and the culture of other and to develop a sense of European identity. With the “ction Strategic Partnerships , the educational agencies schools, Regional and/or Local Education Directorates) have the opportunity of developing and enhancing the transnational cooperation between organizations that are active in the field of education. The desired goal is to involve participants from different areas related to education, and from different countries, in order to produce high-quality innovative products, by utilizing the interaction of their skills and experiences to generate positive long-term effects for the entire educational community that participates, as well as causing improvements in the systems and policies for education in Europe. Finally, in the same programme, the “ction Support to Policy Reform Issues supports the reforms of the public policy of the Member States and seeks cooperation with third countries, including exchanges of good practices. This support includes the implementation of European transparency tools, conducting cross-national studies and supporting specific action programmes, including as well the Bologna Process for higher education and the Copenhagen one for vocational education and training. The eligible agencies for submitting financing proposals in the INTERREG EUROPE 2014-2020 programme are the Regional and Local Secondary Education Directorates. The fundable projects aim to improve the implementation of policies and activities for the regional development, which mainly concern the achievement of the investment objectives of Growth and Employment and, wherever is necessary, the European Territorial Cooperation, by promoting the exchange of experiences and learning policies in participants of regional interest. To achieve all the above, during the programming period 2014-2020, the funding projects are related only to a small number of thematic objectives in a total of five priority axes, thus targeting more specific actions and achieving the most effective results possible. Specifically, the priority axes regard: European Journal of Education Studies - Volume 2 │ Issue 7│ 2016 3 Evangelos C. Papakitsos, Xanthipi Foulidi, Konstantinos Karakiozis, Evangelos Theologis, Argyrios Argyriou ALTERNATIVE FUNDING OF SCHOOLS IN EUROPE research; technological development and innovation; competitiveness of small and medium size enterprises; low-carbon economy; environment and resources viability. 3. Funding of Public Education from private sector resources Private resources that can be allocated to the school funding are the prizes of student competitions, donations, business operations, etc. Undoubtedly, in this case, the resources are very limited (Spyropoulou et al., 2008: 442). Accordingly, numerous competitions are recorded, having thematic variety, diversity of objectives and prizemoney rewards. 3.1. Virtual Enterprise of schools The programme Virtual Enterprise is implemented in cooperation with the international non-profit educational organization Junior Achievement Worldwide Francomano, and offers the opportunity for students to become entrepreneurs .  They can create and promote:  online services;  board games;  original cosmetics;  smart applications for mobile phones;  radio stations;  utilitarian objects;  decoration and nutrition products; but also social, environmental and cultural enterprises. The promotion of their creations is conducted in Student Fairs, while the revenue is available to charitable purposes. 3.2. Public schools open to society The resources needed by schools are classified in human, financial and material ones. The main goal of educational administration is to manage the allocation of these resources, based on the constraints that exist. In this context, the investments are made to maintain the existing material resources or to develop new ones, among other activities. How can we invest the limited financial resources available in order to maximize the benefit of schools? In this case, the options are very difficult and a valuable tool is a cost-benefit analysis, based on answering the following two questions (Everard et al., 2004): a) Has it been made an effective use of resources in terms of past and present? b) How can we achieve a future resource usage in cost-benefit terms? European Journal of Education Studies - Volume 2 │ Issue 7│ 2016 4 Evangelos C. Papakitsos, Xanthipi Foulidi, Konstantinos Karakiozis, Evangelos Theologis, Argyrios Argyriou ALTERNATIVE FUNDING OF SCHOOLS IN EUROPE According to the relevant bibliography, the co-operation of the schools with the local social organizations and in general with the local community and authorities can contribute to better learning outcomes through (Athanasoula-Reppa, 2008):   the development of activities in which learners (children / students or adults) will be able to develop their interests and talents; the usage of existing school facilities and infrastructure for supporting actions of lifelong learning. At international level, this practice is already followed by many countries. For example, the relevant policy followed in some countries is presented next, according to the Organisation for Economic Co-operation and Development (OECD) figures: i) In Austria, schools are used both for educational and non-educational purposes, such as: adult education, sports or cultural activities or youth support activities. Especially for Bundesschulen schools, such actions are one of their main purposes, for enhancing their autonomy and for covering their maintenance costs. Under the current legislation, the cost and time frame for renting school facilities are identified by the local municipalities that manage these facilities. Especially for schools threatened with closure due to the small number of pupils, an important argument to prevent such decisions is how important these school-facilities are for local communities (OECD, 2015a). ii) In Belgium, the use of school buildings and facilities after school-hours is a common practice in many schools. In particular, primary and secondary education school buildings are used during the afternoon shift: for adult education programmes; by private organizations or sports clubs that rent both classrooms and sports facilities; or they used for activities during school holidays (OECD, 2015b). iii) In Slovakia, the school facilities can be rented by organizations or persons upon a decision of the owner of the school, but without obstructing the teaching or the after school activities of pupils, provided that the required safety regulations are respected. The school facilities are normally used by school clubs that provide educational or other activities and evening education sessions (OECD, 2015c). iv) In Iceland respectively, each local community or upper secondary education school is responsible to develop its own policies for the usage of school facilities after school-hours. Generally, the local communities put great emphasis on the use of primary and secondary education school-facilities by third parties. For example, many compulsory education school-buildings are used as youth centers and sometimes for activities such as local choirs, chess games, etc., that are organized for adults or elder people by the local community or nongovernmental organizations. Also, some schools in rural areas are used as motels European Journal of Education Studies - Volume 2 │ Issue 7│ 2016 5 Evangelos C. Papakitsos, Xanthipi Foulidi, Konstantinos Karakiozis, Evangelos Theologis, Argyrios Argyriou ALTERNATIVE FUNDING OF SCHOOLS IN EUROPE for tourists during the summer period. Finally, some schools charge a fee for renting their sports facilities to local sport clubs (OECD, 2015d). v) In Estonia also, school buildings are widely used for activities after school-hours, such as athletic adult education or craft programmes. Specifically, in a survey conducted recently, 77% of school-facilities are used for non-school activities (only 50% for upper secondary education schools and 82-90% for other schools). The cost of using these facilities is calculated by their respective owners. Usually it varies depending on the type of usage and often is for free, particularly for local community members (OECD, 2015e). vi) Finally, in Cyprus, the institution of Open School has been already implemented since 2007 (Ministry of Education and Culture, 2016). The Education Ministry of Cyprus proceeded to use the school-facilities in cooperation with the municipalities and local school boards. During the school year 2014-2015, more than 11,000 citizens of all ages participated in the programmes of Open School (Municipality of Nicosia, 2015; Municipality of Lakatamia, 2015; Municipality of Latsia, 2015). The aims of this action include: the use of school premises as culture, sports and creation centers, when not covering the objectives of the curriculum; the activation / participation of citizens in society and the strengthening of school-local community relations; promoting experiential and collaborative learning. In this context, financed through the Fund of such actions can be Open School , other European programmes and/or from the contributory cost of some services, such as:   the organizing of sports, theater, film, dance and other cultural activities, events and exhibitions;  the organizing of informative lectures on social and educational topics;  computer training; the organizing of environmental education and training programmes or of the use of school libraries by the citizens and for borrowing books. Consequently, the schools play an important role in maintaining community cohesion and to the preservation and transmission of local history and culture (Berry & West, 2010). They also contribute to the increase of social capital within the community and to the cooperation of all members of the community with mutual benefits. Similarly, the social capital that schools promote has a positive effect on the social life of the community when the latter supports and is involved in school activities (Moulton, 2001). Besides, the specific actions should be considered financially as an investment in education that returns to the local community (Chalkiotis, 1999). European Journal of Education Studies - Volume 2 │ Issue 7│ 2016 6 Evangelos C. Papakitsos, Xanthipi Foulidi, Konstantinos Karakiozis, Evangelos Theologis, Argyrios Argyriou ALTERNATIVE FUNDING OF SCHOOLS IN EUROPE 4. Conclusions The presented herein alternative means for the funding of schools are innovative but realistic proposals. They ensure the growth of scarce resources that schools need these times in many European countries, but they also ensure multiple educational benefits for the entire educational community. References 1. Athanasoula-Reppa A., 2008. The educational organization and its broader social context. In A. Athanasoula-Reppa & E. Koutouzis (Eds.), Administration of Educational Units, vol. 3: Social and European dimension of educational administration, Patra, Hellenic Open University, pp. 39-93 (in Greek). 2. Berry C.R., West M., 2010. Growing Pains: The School Consolidation Movement and Student Outcomes. Journal of Law, Economics, and Organisation 25(1): 1-29. 3. Chalkiotis D., 1999. Educational Administration and Economics. In A. Athanasoula-Reppa, A. Dakopoulou, E. Koutouzis, G. Mavrogiorgos & D. Chalkiotis (Eds.), Administration of Educational Units, vol. 1: Educational Administration and Politics, Patra, Hellenic Open University, pp. 239-293 (in Greek). 4. ELSTAT, 2015. Gross domestic product (Estimates) (1995 - 2015), Athens, Hellenic Statistical Authority. Accessed 4 September 2016 (in Greek). 5. Eurydice, 2014. Financing Schools in Europe: Mechanisms, methods and criteria for public funding, Eurydice Report, European Commission /EACEA/, Luxemburg, Publications Agency of the European Union. 6. Everard K.B., Morris G., Wilson I., 2004. Effective School Management, London, Paul Chapman Publishing. 7. Francomano J., 1988. Junior Achievement: A History. Colorado Springs, CO, Junior Achievement Inc. 8. HMERA, 2000. Operational Programme for Education and Initial Vocational Training - Ι (1994-1999), Athens, Hellenic Ministry of Education & Religious Affairs. 9. IKY, 2016. Εrasmus+ Programme Management Guide, Athens, State Scholarships Foundation (of Greece). http://www.iky.gr/erasmusplus. Accessed 12 April 2016 (in Greek). 10. Ministry of Education and Culture, 2016. Continuation and expansion of the institution of Open School, Republic of Cyprus. Accessed 9 March 2016. European Journal of Education Studies - Volume 2 │ Issue 7│ 2016 7 Evangelos C. Papakitsos, Xanthipi Foulidi, Konstantinos Karakiozis, Evangelos Theologis, Argyrios Argyriou ALTERNATIVE FUNDING OF SCHOOLS IN EUROPE 11. Moulton J., 2001. Improving education in rural areas: Guidance for rural development specialists. Washington, D.C., The World Bank. 12. Municipality of Lakatamia, 5. Open School Initiative, Cyprus. http://www.lakatamia.org.cy/default.aspx?articleID=1519. Accessed 23 June 2016 (in Greek). 13. Municipality of Latsia, 5. Open School Initiative, Cyprus. http://www.latsia.org.cy/default.asp?id=385. Accessed 23 June 2016 (in Greek). 14. Municipality of Nicosia, 5. Open School Initiative, Cyprus. http://www.nicosia.org.cy/el-GR/municipality/multipurpose-centre/open-school Accessed 23 June 2016 (in Greek). 15. Nodara E., Sella O., 2008. The State and Community funding of public education and their role in shaping the quality of education, Dissertation, Preveza, Department of Accounting and Finance, Technological Educational Institute of Epirus (in Greek). 16. OECD, 2015a. OECD Review of Policies to Improve the Effectiveness of Resource Use in Schools - Country Background Report for Austria, Paris, Organisation for Economic Co-operation and Development. 17. OECD, 2015b. OECD Review of Policies to Improve the Effectiveness of Resource Use in Schools - Country Background Report of Belgium/Flemish community, Paris, Organisation for Economic Co-operation and Development. 18. OECD, 2015c. OECD Review of Policies to Improve the Effectiveness of Resource Use in Schools - Country Background Report for the Slovak Republic, Paris, Organisation for Economic Co-operation and Development. 19. OECD, 2015d. OECD Review of Policies to Improve the Effectiveness of Resource Use in Schools - Country Background Report Iceland, Paris, Organisation for Economic Co-operation and Development. 20. OECD, 2015e. OECD Review of Policies to Improve the Effectiveness of Resource Use in Schools - Country Background Report Estonia, Paris, Organisation for Economic Co-operation and Development. 21. Spyropoulou D., Kontaris C., “ntonakaki T., Chala C., . Financial Resources in Education Quality in Education - Research to assess quality characteristics of primary and secondary education system, Athens, Pedagogical Institute, pp. 437466 (in Greek). 22. Zogopoulos E., 2013. The importance of factors Logistical Infrastructure and Resources in educational processes , Ta ekpaideutika 2013: 107-108 (in Greek). European Journal of Education Studies - Volume 2 │ Issue 7│ 2016 8 Evangelos C. Papakitsos, Xanthipi Foulidi, Konstantinos Karakiozis, Evangelos Theologis, Argyrios Argyriou ALTERNATIVE FUNDING OF SCHOOLS IN EUROPE Creative Commons licensing terms Author(s) will retain the copyright of their published articles agreeing that a Creative Commons Attribution 4.0 International License (CC BY 4.0) terms will be applied to their work. Under the terms of this license, no permission is required from the author(s) or publisher for members of the community to copy, distribute, transmit or adapt the article content, providing a proper, prominent and unambiguous attribution to the authors in a manner that makes clear that the materials are being reused under permission of a Creative Commons License. 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