FINANCIAL MANAGEMENT IN SELECTED PUBLIC PRIMARY SCHOOLS IN GAUTENG

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CHAPTER ONE INTRODUCTION AND PROBLEM ORIENTATION

  1.                     INTRODUCTION

The restructuring of the education and training system has been one of the many priorities of the government, since the first democratic elections in 1994. Prior to this era South Africa did not have a comprehensive national system of education and training. Education was characterized by separate education tailored specifically for the various race groups within the national populace. Disparity was abundantly evident as schools in townships were poorly resourced both in people management (Human Resources) and financial management resources as the per capita expenditure was highly unequal (Mothata 2000:2). In an attempt  to build a just and equitable system the Department of Education and Training published numerous policy documents with the aim of restructuring the South African education system. Such policies were in congruence with the stipulations of the Constitution of the Republic of South Africa, Act 108 of 1996.

The White Paper on Education and Training of 1995 (Education White Paper 1) (Mothata 2000:6) was the predominant official policy document on education published by the ANC- led government. The White paper set out the policy directions, values and principles for the education system in accordance with the Constitution. The document emphasized an integrated approach to education and training, an outcomes based approach, lifelong learning, access to education and training, equity and redress in transforming the legacies of the past.

Education White paper 2 was published in 1996. It was titled “Organization, Governance and Funding of Schools” and was based on proposals set out in the Hunter Report. It built on the principles that were set out in White Paper 1. In essence parental rights, the governance policy of public schools, roles and responsibilities of public school governing bodies, employment of teachers, public and independent schools and learners with special education needs were included in this Paper. The Paper formed the cornerstone of the South African Schools Act 84 of 1996. Within the broader educational paradigm the South African Schools Act (Act 84 of 1996) came into effect on 1 January 1997. The main objective of the Act is to provide for a uniform system for the organization, governance and funding of schools. The act places an enormous responsibility on the state regarding the funding of public schools. Inter alia the act provides that, “the state must fund public schools from public revenue on an

equitable basis in order to ensure the proper exercise of the rights of learners to education and the redress of past inequalities in educational provision” (South African Schools Act, Act 84 of 1996 section 34(1)).

The South African Schools Act, (Act 84 of 1996), also sets out the national norms and minimum standards for public school funding. These norms and minimum standards deal with:

  • the public funding of public schools, in terms of section 35 of the Act;
    • the exemption of parents who are unable to pay school fees, in terms of section 39(4) of the South African Schools Act (Act 84 of 1996); and
    • public subsidies to independent schools in terms of section 48(1) of the South African Schools Act (Act 84 of 1996).

Whilst the government has endeavoured to honour the states’ responsibility in terms of the Constitution and the South African Schools Act (Act 84 0f 1996), i.e. to progressively provide resources to safeguard the right to education of all South Africans, educational needs in South Africa are much greater than the current budgetary provision for education. With financial constraints and limitations of both national and provincial budgets for education, it has become increasingly difficult for the government to provide for all financial requirements of a school especially within a disadvantaged educational environment. In essence it is accepted that the state cannot fund schooling totally out of its own budget. Therefore to effect redress and improve equity public spending on schools is in the main specifically targeted to the needs of the poorest within our communities (Bisschoff & Sayed 1999: 310).