Specific Features of Per Capita Funding of Secondary Schools in Armenia
Since 1995, the process of democratization and decentralization of the public administration system started in Armenia, which naturally affected the education system. Consequently, it became necessary to revise the state secondary schools’ management system.At the same time, on the one hand, a gradual reduction of the country’s population and, accordingly, the number of secondary school students; and on the other hand, the use of the Soviet budget allocation model led to a decrease in the efficiency of the general education system and inflexible, inefficient use of limited budgetary resources. As a result, it became necessary to revise the old school funding mechanisms and introduce new ones in accordance with international practices. Hence, as an integral part of the general education structural reforms, the principle of per capita funding of public schools and the respective funding formula were introduced in 1999. Basically, it served as a new financial mechanism for management of the education sector. This mechanism allowed for a transition from State Budget’s line item funding to a lump sum funding principle.This article presents an analysis of peculiarities in the process of introducing per capita funding in Armenia, principles and methodology of the funding formula, as well as an analysis of the strengths and weaknesses of the formula in the context of international experience. In addition, recommendations for improving and further developing the funding formula are provided. These recommendations are aimed at improving organizational governance and financial efficiency of the educational process, improving the effectiveness of schools and ensuring a more equitable distribution of funds between individual schools.