CENTRAL LUZON STATE UNIVERSITY

College Of

ED 708
Educational Finance

Submitted by:
DARY NASMI FAUZIAH
MS EDUCATIONAL MANAGEMENT
Submitted to:
JOHANNA V. FAJANEL

Educational Quality and financial support

Objectives

 To formulate conclusions regarding quality of education

 To identify reasons of inequality of education in opportunity in education
 For the implementation of an educational process in accordance with the needs of students.
 To evaluate relationships between cost and quality and to assess whether a combination
cost and quality evaluation affects the quality of education
 To know Major issues effecting quality of education
 To Explain “quality education is a right for all

Introduction

Education is one of the most important aspects in enhancing a country's development. However,
there are still several problems related to the delivery of education, namely in terms of equity, relevance,
efficiency and quality of education. Talking about the quality of education, it will be directly related to the
role of schools as educational institutions. The management of teaching and learning in schools is very
meaningful in determining student success.
“A nation cannot be built without education.” (Taylor-Kamara, 2010), to achieve good school
quality, education costs must be managed optimally. Therefore, the stages in education financing
management need to be considered. Basically, the purpose of education financing management is the
implementation of an educational process in accordance with the expected learning needs of students. At
each stage of the financing management process, the main concern is the achievement of the vision and
mission of the school. The stages of education financing management through the education financing
planning stages, the financing implementation stages, and the financing supervision, education Schools
are one of the formal education providers that try to assist the community in meeting their needs
that cannot be fulfilled by the community themselves. Schools as education providers have a duty
to educate their developing students towards maturity to achieve positive changes in terms of
knowledge, attitudes, and skills. It is almost certain that the education process cannot run without
adequate financial support. Quality education requires a lot of financial support, the quality of
education is closely related to the financial because education requires money to facilitate this
education.
Quality imperatives should be a central concern in mobilizing national resources for
education. Government should earmark at least 20-25 percent of the national education budget for
quality as against recurring expenditure. Quality education has many important supply-side factors
including quality curriculum, quality textbooks, and quality teaching-learning materials and
environment. Qualified teachers of eminence and erudition with a secure understanding of the
subject knowledge and pedagogical skills are the most essential pre-requisite for quality education.
In order to achieve the goals of quality education, it will be important to ensure the provision of
supply-side factors. There are serious challenges of financing quality education, especially in
developing countries. In order to bridge the deficit gap, there are a dire need to enhance financial
allocations at the national level and mobilization more resources than ever before from bilateral,
multilateral, and UN Agencies.
The highest performing education systems are those that combine equity with quality. They
give all children opportunities for good quality education. The student who leaves school without
completing upper secondary education or without the relevant skills has fewer life prospects. This
can be seen in lower initial and lifetime earnings, more difficulties in adapting to rapidly

1. Quality education in Philippines

In 2011 the curriculum system for elementary to high school was 10 years for
compulsory education. However, the program has been changed to K-12 around 2013
(same as Indonesia, 12 years of compulsory education) the newest education in the
Philippines this time is to stipulate that compulsory education in the country is compulsory
education for 13 years. 95.9% of Filipinos attend secondary school, including the best in
Asia. The illiteracy rate in the Philippines stands at nearly 97%, the highest among
Southeast Asian countries and among the top 5 among Asian countries.
The student quality index in the Philippines is still low, but the productivity and
quality of university graduates in the country are among the best in Southeast Asia. For the
course curriculum, the Philippines uses a system similar to that of the United States. For
example, for medical education, the system that deals with problems is not the same as
Indonesia but the same as the United States. In the Philippines, you have to complete your
Bachelor's education first, then take another Bachelor of Medicine. So, it takes about 8
years to study a general practitioner.
Most graduates of Nursing or Medical Technologists from the Philippines can be
accepted to work in the UK, Australia, the United States and other countries, because
 English counts and because the Philippines has an international standard curriculum.
Almost everyone has a "Registered", or what can be called like the state exam to have a
license. Nursing, Medical Technology, Accounting, Teachers, Librarians, Engineering,
and Medicine are majors that are required to have a license to have them work after college.
The education system in the Philippines starts with Pre-Elementary Education with various
programs for ages 3-6 years, then Primary Education 6 or 7 years, continues to Secondary
Education 4 years where each year the material focuses on a particular theme or content.
And in the last year of Secondary Education, each school held a higher education entrance
examination. After completing Secondary Education, students can continue their education
in Technical and Vocational Education for 2 or 3 years, or Higher Education (University)
2. Financial and Quality concept
Education funding is all activities to provide funds allocated in the educational
process. The world of education uses the concept of economics, strictly calculating costs
because of the limit of funds. Therefore, it is necessary to set stages and priorities.
Education financing is an activity related to seeking sources of funds and using funds in
the education process. Thus, education finance has at least three aspects: income (source
of funds), expenditure which is the allocation of funds obtained, and accountability for the
use of funds. As for some of the quality concepts put forward by experts, among others,
According to Crosby (1994), quality is conformance to requirements, which is in
accordance with what is required or standardized. A product has quality if it conforms to
predetermined standards or quality criteria, these quality standards include raw materials,
production processes, and finished products.
The cost factor of education is important and strategic in order to improve the
quality of education. Hence the cost of education is a very important input factor in the
context of improving the quality of education and carrying out the function of education to
improve the quality of human resources.
3. Definition of education cost and quality of education
Cook (2009:304) stated that “the cost education is the source which is used for
educational quality given as feedback of the continual information through application
forms”. Education is an important factor to improve quality human resources (HR). The
cost of education is one of the most important instrumental input components in the
 delivery of education. In every effort to achieve educational goals, both quantitative and
qualitative goals, the cost of education has a very decisive role. There are two important
things that need to be studied or analyzed in education financing, namely the overall cost
of education (total cost) and the unit cost. In general, education financing is a complexity,
in which there will be interrelationships in each of its components, which have 6 ranges
that are micro (education unit) to macro (national), which include sources of education
financing, systems and mechanisms for their allocation, effectiveness, and efficiency in its
use, the accountability of the results as measured by changes that will occur in the structure,
especially schools, and problems that are still related to costs. Education
Quality is a comprehensive description and characteristics of goods or services that
show its ability to satisfy expected or fixed needs. In the context of education, the definition
of quality refers to inputs, processes, or outputs or results. The quality of the input can be
seen from various sides:
 The condition of whether or not the input of human resources is good, such as
school principals, teachers, laboratory assistants, administrative staff, and students.
 Whether or not the material input criteria are fulfilled in the form of teaching aids,
books, curriculum, school infrastructure, and others.
 Meet or fail the input criteria in the form of software, such as regulations,
organizational structure and job descriptions.
 Quality of input is in the form of expectations and needs, such as vision, motivation,
persistence and aspirations.
4. Types of education financing
The ability to finance is one of the key factors in the success of school management
practices, both managed conventionally and based on School Based Management (SBM).
The most optimistic thinking about the position of costs in relation to education quality
suggests that cost is a function of quality. In other words, the relationship between
increased education costs and an increase in the quality of education is linear. Tuition fees
can be differentiated into two categories, namely direct costs and indirect costs. Direct
costs are all expenses that directly support the provision of education. Direct costs, in this
case the dimensions of education expenditures, include routine costs and development
costs, while indirect costs are expenses that indirectly support the process. Education, but
 allows the educational process to occur, for example student costs, transportation, snacks
and health.
5. Education financing policy
Education financing is based on economic principles, so that most of the economic
analysis, both micro and macro, can be used to analyze educational problems.
Pscharopoulus (1987) further emphasizes that the economy of education is oriented
towards the role of education in Economic development, the concept of human capital
according to Psacharopoulus (1987) is related to the fact that basically humans will invest
in themselves through education, training, and other activities that will increase their future
income through increasing "life time earnings". Higher education according to Becker
(1993) will lead to higher productivity as well, assumptions this is one of the important
aspects in human resource development through education and training so as to increase
skills and work productivity. Educational productivity as a result of a management process
that has a product function shows education performance, especially school performance,
can be seen in the output of management in the form of services and graduates, therefore
the education production function is important to ensure that educational investment is
profitable.
Although the difference in income levels does not stop at the level of education, it
must also be supported by work experience, skills, business sector, type of business,
location and so on. The physical input of the school consists of the characteristics of the
building, the availability of learning facilities in the classroom and school, the quantity and
quality available equipment, teaching strategies and programs, teaching aids and each
subject, classroom and office facilities and equipment, physical and other supporting
facilities. Human input that requires operational costs consists of administrators and
structural school officials, secretariat, administrative services, assistant staff, professional
teachers, supervisors, curriculum and teaching experts, and counselors. Meanwhile, non-
school input can support the success of student output such as peers, interests, talents,
gender, family, parental status, race, socioeconomic status, and so on.
6. OPERATIONALIZATION OF EDUCATION FINANCING
In Indonesia, the operational foundation for development and other policies is based
on the State Policy Guidelines (GBHN) which are compiled every five years. GBHN is a
 legislative enactment product which is a development cost, including education financing.
In this way, the allocation and distribution of education financing should be based on
activities that are in accordance with the GBHN, especially regarding the education sector.
Cost policy analysis in education is included in policy review. The public uses economic
principles, so that most of the economic analysis, both micro and macro, can be used to
analyze educational problems. This financing policy analysis includes the mechanism for
determining the education budget as well as the existence of School-Based Quality
Improvement Management (MPMBS) or commonly known as MBS (Management School
Based). The role or obligation of the government in education financing is evident from
the existence of the BOS / M (School / Madrasah Operational Assistance) program, as
described in the BOS Guidelines, Financial Management and Monitoring and Evaluation.
The book explains the instructions for implementing School Operational Assistance,
Financial Technical Instructions for School Operational Assistance, as well as Monitoring
and Evaluation Technical Instructions.
The impact of education costs on the quality of the process and learning outcomes,
namely
 Education is calculated to be a determining factor for a person's success both socially and
economically. The value of education in the form of a moral asset is a form of capability,
skill, skill acquired through education which is seen as an investment. This view is guided
by the Human premise. Capital (HR as an element of capital). Based on this premise, the
value of the costs used for education is seen as an investment in education that needs to
take into account the value of benefits (benefits) or benefits in the future.
 Costs and quality of education are directly related. The cost of education has a positive
influence through the leadership and management factors of education and competent
education personnel in an effort to improve educational services through quality
improvement.
 Important indicators that can affect the quality or quality of education include the low
quality of teachers at all levels of education and insufficient teaching and learning process
aids. The reality on the ground shows that the schools are high quality are schools that have
large financial support from the community (parents).
7. CONCLUSION
 Education is a conscious and planned effort to create an atmosphere of learning and
the learning process so that students can actively develop their potential to have religious-
spiritual strength, self-control, personality, intelligence, noble character, and skills needed
by him, society, and the nation. The cost of education is one component of an instrumental
input very important in the implementation of education. In every effort to achieve
educational goals, both quantitative and qualitative goals, the cost of education has a very
decisive role. There are two important things that are necessary studied or analyzed in
education financing. The implementation of quality education is always associated with
elements financing. One thing that is easily accepted is that quality education requires a lot
of financial support. Participatory financing mechanisms allow schools to obtain additional
sources of financing from economically well-off parents. Indirectly this has an impact on
increasing sources of funding for schools is directly proportional to school quality
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