Under the current system, if a student enrolls in public school in another municipality, the student's local government of residence must automatically help cover that school's operating costs — even if it has already offered them enrollment at its own local school.

The costs cover expenses not funded by the state's education grant, including school building maintenance, utilities and other day-to-day operations.

The ministry has submitted a bill for review that would end the automatic payment requirement, leaving it up to local governments to agree among themselves on how school operating costs are shared.

Association of Estonian Cities and Municipalities (ELVL) executive director Veikko Luhalaid said local governments have discussed the proposed change with the ministry several times.

Not everyone benefits

He said the current system can leave municipalities on unequal footing. For example, families may choose larger schools in neighboring municipalities over smaller local schools.

The municipality where a student lives, however, must still maintain its own schools, even with fewer students.

"That's a double burden," Luhalaid pointed out.

He said local governments could instead agree via contracts on student admissions and how costs are shared, avoiding automatic payment obligations altogether.

Municipalities, however, are divided on the proposal. Some benefit from the current system because schools near municipal borders tend to attract students from neighboring areas.

"Teachers' salaries are paid from the funding that comes with those students," Luhalaid explained.

For municipalities losing students to larger neighboring schools, however, many operating costs remain even as enrollment falls, leaving them with fewer students but little relief from the cost of maintaining their schools.

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