Ministry of Education and Research: Budget for 2007:

Big investment in kindergarten and education

The Government proposes to increase funding for kindergarten education by some NOK 3.2 billion in 2007. Of this, NOK 1.24 billion will be earmarked for the creation of new places. The Government also proposes to allocate over NOK 370 million to the introduction of free learning materials for students in upper secondary education. Additionally, the Government proposes to increase the capital of the Research and Innovation Fund by NOK 10 billion to NOK 60 billion. Total budget allocations to research and development will increase by almost NOK 900 million.

These are the key priorities in the proposed budget for the Ministry of Education and Research in 2007. Another priority is to implement the Knowledge Promotion Reform in the best possible way, and the budget proposal includes allocations of around NOK 1.4 billion for this purpose.

“This budget proposal paves the way for investment in a modern kindergarten system, as well as emphasizing the importance of quality in our schools. The Government is also increasing the capital of the Research and Innovation Fund by NOK 24 billion over two years, which is the biggest ever increase,” said Øystein Djupedal, Minister of Education and Research.

The Government wishes to see full kindergarten coverage, offering high quality at low cost, achieved in 2007. There will be a particular focus on reaching this goal during the year. It is proposed to increase funding for kindergarten by some NOK 3.2 billion, of which almost NOK 1.24 billion will be earmarked for creating new places. This will pave the way for the creation of 19,300 new kindergarten places, accommodating an additional 15,800 children. This will be the largest ever expansion of kindergarten capacity. To accelerate expansion in the kindergarten sector, the Government proposes to introduce grants for creating permanent places at temporary kindergarten sites with effect from 1 January 2007. A grant of NOK 8,400 is proposed for each new child allocated a full-time place, and NOK 4,200 for each new child allocated a part-time place.

The Government proposes to introduce a scheme providing free learning materials to students in upper secondary education with effect from autumn 2007. The scheme has two components, with county councils responsible for ensuring that students receive the necessary printed and electronic learning materials. In addition, a non-means-tested grant will be offered through the State Educational Loan Fund, which is intended to help students cover the cost of other learning materials and essential personal equipment. The free learning materials scheme will be introduced in stages: for upper secondary Level 2 students from the 2007–08 academic year, then for Level 3 students from 2008–09, and finally for Level 1 students from 2009–10.

The Government proposes to allocate around NOK 1.4 billion to the Knowledge Promotion Reform, the ongoing major overhaul of comprehensive education, in 2007. Of this, some NOK 670 million will go towards skills development and other development programs.

The Government wishes to see all comprehensive school pupils enjoying a good physical learning environment. It therefore proposes to raise the investment ceiling on the interest compensation scheme for capital expenditure on school buildings by a further NOK 2 billion in 2007. The budget allocation is accordingly increased by NOK 39 million. As a result, the total investment ceiling of NOK 15 billion will be phased in two years ahead of schedule.

To strengthen the long-term basis for research, the Government proposes to increase the capital of the Research and Innovation Fund by NOK 10 billion to NOK 60 billion. This will yield an increased return of around NOK 440 million in 2008.

Other key features of the budget proposal include:

• Parental contributions to kindergarten costs: The government proposes that parental contributions should be maintained at the same level in real terms as in 2006. The parental contribution towards a full-time preschool place will therefore be NOK 2,330 monthly, or NOK 25,630 annually.
• Education opportunities in the criminal justice system: As part of its anti-poverty drive, the Government wishes to see more prisoners being offered educational opportunities. It therefore proposes to allocate an additional NOK 10 million for this purpose. This is on top of the proposed allocation of NOK 7 million for training needs arising from increased correctional capacity.
• Science centres: As part of the Government’s drive to strengthen the position of scientific subjects in the education system, it is proposed to increase funding for science centres by NOK 6 million to NOK 16 million.
• Adult education associations: The Government wishes to halt the trend towards a reduced range of courses offered by adult education associations. It therefore proposes to increase funding for such associations by NOK 58 million compared with the balanced budget for 2006.
• EU action plan for lifelong learning: The Government wishes to see Norway take part in the EU action plan for lifelong learning, which brings together and expands a number of existing educational programs. The Government proposes to allocate NOK 142 million to the plan, an increase of some NOK 40 million on the funding for existing EU programs in 2006.
• Basic Workplace Skills Program: As part of its anti-poverty drive, the Government proposes to allocate NOK 10 million to strengthening and expanding the Basic Workplace Skills Program. As a result, the program’s overall budget in 2007 will be around NOK 35 million.
• Support from the State Educational Loan Fund: The Government considers it important to adjust support from the State Educational Loan Fund to keep pace with inflation. The Government therefore proposes to increase by 1.75% all the rates of support provided by the fund with effect from the 2007–08 academic year, in line with the expected rise in the consumer price index.
• University and higher education sector: It is proposed to reduce the basic allocation to universities and university colleges by NOK 274.3 million. Universities will take NOK 180.2 million of this reduction, and university colleges NOK 94.1 million. In part, the reduction applies to those institutions that failed to comply with Parliament’s instructions in the 2005 budget to cut the number of student places.
• Internationalization of research: Greater internationalization of Norwegian research is a key priority in science policy. The Government wishes to see Norway take part in the seventh EU framework program for research and technological development and proposes to allocate NOK 184 million for this purpose. International Polar Year 2007–08 is another key priority in 2007, for which the Government proposes to increase the budget allocation by NOK 80 million.
• Peace and human rights centres: To bolster the activities of the Falstad Centre and the Holocaust Centre, the Government proposes to increase funding for each centre by NOK 3 million in 2007.

Contact: Kjetil Moen, Divisional Director, tel. +47 22 24 75 28

Håvard Austvik, Adviser, tel. +47 22 24 78 72