Page 9 - IDEA Study 4 2017 Public financing for pre-school places

Costs and benefits related to additional pre-school places

Immediate benefits Immediate costs

+ increased personal income tax revenues – increased operating expenses
+ increased social security and health insurance
contributions
+ lower expenditures on family welfare benefits

Secondary and long-term benefits Secondary and long-term costs

+ increased lifelong earnings and tax revenues – increased capital costs
+ increased family income – increased income tax reliefs
+ increased non-monetary family gains – increased retirement and social security benefits
+ increased willingness to have children, higher (due to higher income)
birth rate, reduced financial burden due to
population ageing

+ better utilization and reduced waste of human
capital (education and work experience)

Public Expenditures on Pre-School Education

As for the costs related to the placement of an additional child in a pre-school facility, we
have assumed them to correspond to the current average operating expenses for one child
in a pre-school facility. We have calculated those as a proportion of the total public
expenses allocated to pre-school education for the total number of children educated
in pre-schools. The costs to public budgets in chapters 333 and 7008 amounted to
approximately CZK 55,767 per one child p.a. in 2014 (Table 1).

Table 1: Public expenditures allocated to pre-school education in 2014

Public expenditures allocated to pre-school education within the regional
education system (2014)

Total annual expenditures for pre-school education CZK 20,349,926,482
Total number of children in pre-school facilities 364,913

Total annual costs to public budgets per one child in a pre-school facility CZK 55,767

Source: Statistical Yearbook of the Czech Education System – set of economic indicators for the year
2014, and performance indicators for the years 2013/2014 and 2014/20159

8 Includes current and capital expenses of pre-school and special pre-school facilities, as well as pre-school
catering costs.
9http://www.msmt.cz/vzdelavani/skolstvi-v-cr/statistika-skolstvi/statisticka-rocenka-skolstvi-soubor-
ekonomickych-ukazatelu-6, http://toiler.uiv.cz/rocenka/rocenka.asp

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