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Education Sector Services for Municipalities

Analysis of Organizing and Developing the Education Network

The analysis provides answers to the following questions:

  • What is the assessment of the efficiency of the school network?
  • What education services and in what volume will be needed in the region in the future?
  • What are the possible development scenarios for the education network?
We provide specific recommendations for the development and reorganization of schools and other educational institutions.
Preparation of an Education Development Plan

A long-term vision and action plan for developing education in your region.

Work Process

We tailor the work process based on the analysis’s terms of reference, scope, timeline, and the client’s needs and expectations.

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You can contact us at info@levellab.ee or call +372 5138041.

The LevelLab team has extensive experience in conducting regional and education sector analyses and surveys. We use both quantitative and qualitative analysis methods: conducting surveys, personal interviews, focus group discussions, and workshops. We assist our clients in project preparation, implementation, and post-activities coordination.

We gather, evaluate, and interpret information to help understand past events, make informed decisions, and plan for the future.

Why is it necessary to develop the education sector?

Education is the most extensive and important area of activity for local governments. The accessibility and quality of education are under heightened scrutiny in society. Local governments are primarily responsible for the organization of general and pre-primary education. Education costs have grown rapidly in recent years, accounting for more than half of the local government’s core activity expenses, and in some cases reaching up to 75%. Therefore, it is critically important that the education network is efficient and meets the changing service needs, and that it is continuously developed. The efficiency and quality of education impact all areas of local government activity.

The demand for education services will change significantly in the coming years

The demand for education services in local governments mainly depends on demographic trends. In areas with a growing population, there is initially an increased demand for preschool places, while in regions with an aging and declining population, the occupancy of study groups decreases. Both trends may lead to an increase in the share of education costs and additional investment needs.

According to the baseline scenario of the population forecast for Estonia compiled by Statistics Estonia in 2024, the demand for basic and general education services (the number of young people up to 19 years old) is expected to decrease by approximately 21% by 2045. The overall population decline is projected to be 3%. Due to migration and changes in birth rates, the actual population may be slightly higher or lower.

The proportion of teachers meeting qualification requirements is rapidly decreasing

The proportion of teachers meeting qualification requirements is in a rapid decline in Estonian kindergartens and general education schools. The main reasons for this are often cited as low teacher salaries, the high proportion of older teachers and the lack of replacements when they retire, as well as young teachers leaving the profession due to high workload and work-related stress.

Local governments can do a lot to address this by implementing a well-thought-out structure and organization of the school network, as well as creating an environment that supports teachers and learning.

2016. aastal vastas kvalifikatsiooninõuetele ligi 90% põhikooli õpetajatest, kuid 2023. aastaks on nende osakaal langenud 78%-ni. Koguni 23 põhikoolis olid enam kui pooled õpetajad kvalifikatsiooninõuetele mittevastavad (Haridussilm, 2024).

The share of education costs in local government budgets is increasing

2023. aastal moodustasid hariduskulud Riigiraha portaali andmetel 52% kohalike omavalitsuste põhitegevuse kuludest, olles sellega ülekaalukalt suurim KOV kuluvaldkond (the second-largest sector is social protection, with a share of 12%).

The state's contribution and local governments' own contribution. The state covers about half of local government education costs through the Support Fund, but the local governments' own contribution is rapidly increasing. In 2018, the Support Fund subsidies covered 51% of local government education costs, but by 2023, this figure had decreased to 47%.

Differences in local government education costs. The share of local government education costs in total core activity expenses varies significantly, ranging from 41% to 75%. The proportion covered by local government own funds also varies from 41% to 70%. The main cause of these differences is the age structure of the population.

A well-thought-out education organization can improve efficiency and ensure a more purposeful use of resources to enhance the quality and accessibility of education.

Good education in one's hometown is of critical importance when choosing a place of residence

The continued growth of remote work opportunities and the improvement of communication and transportation connections provide people with more options when choosing a place to live. For families, one of the most important criteria in making decisions about where to live and work is the availability of child-friendly, high-quality, and local basic and secondary education, as well as access to high-level vocational and secondary education in their home county. This can affect the local government's migration balance both positively and negatively. The reputation of a local government in ensuring access to quality education is easy to lose but difficult to restore.

Completed Work