▲ Minister of Education Choi Gyo-jin answers lawmakers' questions during a plenary session of the National Assembly's Education Committee on the 14th.
Minister of Education Choi Gyo-jin stated on the 14th that discussions between the Ministry of Economy and Budget and the Ministry of Education regarding the reorganization plan for the Local Education Finance Grants are in their final stages.
Attending a plenary session of the National Assembly's Education Committee, Minister Choi responded to a question by Education Committee Chairperson Kim Hee-jung of the People Power Party—who asked whether the direction for the grant reform has not been established at all—by saying, "Significant agreement has been reached regarding the formula on how to reduce volatility and ensure practical support is provided."
He added, "Regarding how to handle the 20.79% baseline, which the education sector is particularly concerned about, we are working together [with the Ministry of Economy and Budget], making mutual concessions and pooling our intentions, to create a plan that nearly preserves both elements."
He continued, "The final plan has not been confirmed yet. Since the arguments of the Ministry of Education and the Ministry of Economy and Budget have not been completely settled, we ask you to wait just a little longer."
Regarding the Ministry of Education's stance on the 20.79% linkage rate of internal tax revenue to education grants, Minister Choi explained, "From the beginning, the Ministry of Education has had no disagreements on the Future Talent Fund, which would maintain the 20.79% baseline while allowing excess tax revenue to be used for higher education, early childhood education, and AI [artificial intelligence] education."
He also elaborated, "From the outset, the Ministry of Education proposed placing a certain cap on the local education finance grants so that they do not increase excessively, while still maintaining the linkage rate."
He stated that the Ministry of Economy and Budget is likely to become the main supervising ministry for the newly established Future Response Fund, and that discussions are underway to ensure the Vice Minister of Education chairs the education subcommittee to make practical decisions regarding education-related budgets.
It is reported that the Ministry of Economy and Budget plans to announce the local education grant reform measures as early as next week.
The Ministry of Economy and Budget has proposed abolishing the current system that automatically allocates 20.79% of internal tax revenue to education grants, and instead reflecting factors such as nominal economic growth rates and declines in the school-age population in the grant calculations.
(Photo: Yonhap News)
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