Monday 17 June 2013

Sources Of Finances For Public School Finance

By Mona Moody


Most people wonder where public institutions get money to run their day to day activities as some of them offer their services at no cost. This article explains highlights where such institutions get their finances from as running a learning institution that offers quality services requires a lot of cash. This therefore tells us that public school finance dealing is not a responsibility of one individual or source but there must be many people or sources involved.

The government is the number one source in funding public institutions. It gets its cash from taxes paid by its citizens. There are property taxes and state taxes and each individual pays for them knowingly or unknowingly. The government in funding different projects within the country including public institutions uses the money collected from such taxes.

Some countries go further to arrest or punish parents who do not allow or tell their students to attend such institutions as some parents use the excuse of not having money as a reason of not taking their children to places of learning. This is a clear example of how some governments are determined in providing education to its people. Educated people in a country are considered as assets of the country.

Another source of finance is: Sponsorships obtained from different individuals, organizations and businesses. Most organizations and businesses finance places of learning as their social responsibility to the community in which they are located. Finances gotten from such institutions are always a lump sum as some organizations use this as a way of marketing themselves.

Individuals too finance these institutions. These individuals are not always the rich in society. Some of them may be able and wealthy but others sacrifice to see to it that children in some areas get education. This is therefore a challenge to wealthy people who do not involve themselves in such acts of giving back to the society.

Bond financing is another source of funding. It takes the form of a loan from a local government entity. Therefore, an institution can borrow a loan from these government entities and repay it later according to the agreement made between the two parties. Bond issuers do not charge high taxes making them affordable to most institutions.

Local government levies are another source of funding for these institutions. In most countries it is a law that the local government within a certain community pays a certain percentage of money to the local schools within its jurisdiction. This money is used in improving the infrastructure of schools and can buy some books too. This does not exempt the government from funding such institutions.

There are many more sources of public school finance that exist but are not written anywhere because they occur once in a while or they are not consistent sources. The above discussed sources are the well known ones and which provide consistent financing to this institutions. For quality education in public schools, more funding is required to see to it that all needs of a school are met.




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