Latvia Proposes School Funding Reform Weeks Before New Academic Year

Changes to Latvia’s teacher salary reform and school network requirements aim to give municipalities more time to adjust, according to the Ministry of Education and Science (IZM). The update addresses long-standing funding inequalities and alters rules regarding class sizes, remote learning, and specific staff allocations.

Transition Rules and Class Size Regulations

The updated framework grants municipalities a transitional period to adapt their school networks to the new funding model and make long-term decisions about educational institutions, as stated by IZM. For schools subject to special conditions under the new model, student numbers may fluctuate within a 25% margin in grades 1 through 6, and within a 10% margin in grades 7 through 9. In the high school stage at these specific schools, a transitional requirement of at least 15 students per class group will remain in place until September 2027.

Full state funding will be directed to schools that meet specific criteria regarding student counts in classes and class groups, alongside structural requirements based on geographic location. The development of these school network criteria previously generated extensive discussions. Representatives from various political forces, municipalities, industry organizations, and residents repeatedly voiced objections to the minimum student thresholds proposed by IZM, citing concerns over potential school closures, particularly in regional and rural areas.

Funding Flexibility and Staff Allocations

Under the revised rules, the current 2% restriction on redistributing state targeted grants among the salaries of teachers, support staff, school directors, and deputy directors will be lifted. This change allows school leaders to allocate funds more flexibly based on actual personnel needs. However, IZM emphasizes that funding must primarily secure pedagogical and support staff required for the teaching process, alongside special education programs.

Additional adjustments bring social pedagogues into the roster of positions funded by state budget targeted grants. Furthermore, directors and deputy directors of state gymnasiums will receive funding for a 10% supplement, matching the bonus already provided to teachers delivering general secondary education programs at those schools.

Did You Know? The teacher salary reform was initially announced back in 2023, during a period when the political alliance “Jaunā vienotība” oversaw the education sector.

Distant Learning Adjustments

The amendments refine distance learning financing by doubling the applicable calculation coefficient for municipal schools that run distance learning programs alongside classroom instruction in grades 1 through 9. According to the ministry, this adjustment supports educational accessibility for children in the Latvian diaspora abroad. Distance learning programs must simultaneously maintain a threshold of at least 15 students per class group.

The “Programma skolā” model was partially introduced starting September 1, 2025, with full implementation scheduled for September 1 of this year. An additional 45 million euros is allocated for its execution in 2026, and larger funding amounts will be necessary in subsequent years. The overarching reform was designed to mitigate salary inequalities tied to the former “Money follows the student” model, where pay increases depended strictly on local child population counts.

Frequently Asked Questions

What is the purpose of the transition solution for municipalities?
According to IZM, the transitional arrangement gives municipalities more time to adapt their school networks to the new funding model and make long-term development decisions regarding their educational institutions.

FULL REMARKS: Latvia Prime Minister Andris Kulbergs Calls For EU Funding Reform | DWS News | AC1F

How does the reform alter funding flexibility for school leaders?
The amendments remove the existing 2% limit on redistributing state targeted grants among the salaries of teachers, support staff, principals, and vice-principals, allowing leaders to manage resources according to actual personnel needs while prioritizing pedagogical staff.

What changes apply to distance learning programs?
The calculation coefficient is doubled for municipal schools offering distance learning alongside regular classes in grades 1 through 9 to help support the diaspora, subject to a minimum threshold of 15 students per class group.

How will these funding and structural adjustments impact educational institutions in your local municipality?

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