More than 20 schools seek emergency funding amid rising costs but only one granted

More than 20 primary schools who reported to be in financial difficulty sought emergency funding from the Department of Education last year in the face of rising costs. However, latest records indicate that just one school was successful in securing additional funding.

Minister for Education Norma Foley has told schools which are experiencing funding difficulties to engage with the financial support services unit in the department. Details released to The Irish Times under the Freedom of Information Act show that the number of schools who were referred to the unit after reporting to be in financial difficulty jumped from two in 2022 to 22 in 2023.

Of the schools that applied for funding in 2023, just one was successful. It was provided with an advance of grant funding worth €3,843, while five other requests had to be decided. The remaining 16 schools were “not found to be in financial difficulty” and did not receive any additional assistance outside normal funding.

The adequate funding of the primary sector has been flagged as urgent issue by the Catholic Primary School Management Association (CPSMA), which commissioned a report on school finances last year by Grant Thornton. The analysis of the financial accounts of more than 400 primary schools found that almost half (48 per cent) of primary schools surveyed were running deficits, with the average of between €10,600-€35,600.

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It estimated that parental contributions were propping up school finances of those surveyed to the tune of €3.5 million, or an estimated €54 million nationally.

The CPSMA said it highlighted the extent to which schools needed “immediate help” against a backdrop of rising costs.

Government officials, however, say record investment in recent budgets, including “once-off” increases in capitation payments to meet rising energy costs, recognise these challenges.

Schools are provided with two main grants: a capitation grant, which caters for day-to-day running costs such as heating, lighting, cleaning, insurance, general upkeep, etc, and an ancillary grant, which caters for the cost of employing secretaries or caretakers. Schools have flexibility to use capitation funding and ancillary funding as a common grant from which the school board of management can allocate according to its own priorities.

The Department of Education said that in addition to these grants €20 million in funding was issued during the October midterm break to support all recognised primary and post-primary schools in the free education scheme. This funding is the first tranche of an overall additional €60 million funding announced as part of Budget 2024 measures designed to assist schools with increased day-to-day running costs such as heating and electricity. A further €40 million in funding is due to be delivered in 2024.

The CPSMA, however, has said many increases have been swallowed up by hikes in energy costs, IT expenses, insurance and other expenses. It has urged the department to act swiftly to pay all grants and money due to schools, and to put in place a “realistic” and fixed grants calendar for the 23/24 school year so schools can plan and budget effectively.

Ms Foley said recently that while some of these increases in capitation funding were on a once-off basis to address cost-of-living pressures, Budget 2024 also includes a permanent restoration of capitation funding.

The current standard rate of capitation grant is €183 per pupil at primary level and will be paid to schools in January-June for the 2023/24 academic year. It will rise to €200 per student in primary schools and to €345 in voluntary secondary schools from next September.

Schools also receive an ancillary services grant. The standard rate is €173 per pupil in primary schools and €224.50 per student in post-primary schools.

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