National Superintendent of Education: “If the grant increases by more than 5%, two-thirds of the excess increase will go to the country.”

Presenting a compromise on the premise of maintaining the domestic tax indexation system... Estimated to secure 44.5 trillion won over 4 years

(Seoul = Yonhap News) Reporter Oh Bo-ram = Superintendents of education in cities and provinces across the country proposed a compromise plan to maintain the domestic tax index system for local education financial grants (grants), but share a portion of the increase with the state if the grant increases.

Superintendents of education who have been demanding the withdrawal of the government's grant reform plan have taken a step back, saying they will participate in securing the nation's future investment resources while maintaining the principle of maintaining the current system.

The Korea Council of Superintendents of Education held a press conference at the National Assembly Communication Hall on the 4th and announced the ‘Education Finance Win-Win Plan’ with these contents.

The core of the coexistence plan is to maintain the current 20.79% indexation system for domestic taxes and provide a portion of the grant to be used for the country's future investments when the grant increases significantly.

The council proposed that if the grant increases by more than 5% from the previous year, two-thirds of the increase exceeding 5% should be used as national future response resources, and conversely, if the grant decreases by more than 5% from the previous year, the state should preserve one-third of the decrease exceeding 5%.

The council emphasized, "We wanted to find a way to protect the financial resources needed for schools while cooperating in investing in the nation's future," and added, "At a time when tax revenues are greatly increasing, the education community will also do its part to prepare for the nation's future."

According to the council's estimates, if this plan is applied, the grant in 2027 will be approximately KRW 89.6 trillion, which will exceed the minimum required amount (KRW 88.4 trillion) presented by the provincial and provincial offices of education.

Approximately 44.5 trillion won in national future response resources can be secured over four years from 2027 to 2030.

The council reiterated the need to secure stable education finances, saying that all 16 metropolitan and provincial offices of education across the country are expected to have a shortfall of 7.3657 trillion won during the main budget preparation process for next year.

The government abolished the current method of distributing 20.79% of domestic taxes as grants and submitted a revision to the Local Education Financial Grants Act to the National Assembly to calculate grants by reflecting economic growth rate and school-age population change rate.

The plan is to return the difference between the grant calculated using the existing method and the grant based on the new method to the Future Response Fund and use it for infant and toddler education, college and lifelong education, and talent development.

However, superintendents of education have strongly opposed the reform plan, saying that if the indexation system is abolished, the stability of education finances will be threatened.