Mobilising and increasing financial resources for Lifelong … · 2015-09-11 · Unesco Hamburg 1 by Prof. Dr. Dieter Timmermann Bielefeld University School of Education Mobilising

Unesco Hamburg 1

by

Prof. Dr. Dieter Timmermann

Bielefeld University

School of Education

Mobilising and increasing financial

resources for Lifelong Learning as well

as effective funding mechanisms

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1. What means financing?

– acquisition of money versus creating disposability over resources

resp. establishing the availability of and the control over resources

2. The relationship between financing and the resources

• a broad concept of resources

– mental resources - physical resources

– time as a resource - money as a resource

– institutional resources (in case of CVTT and CHiEd)

Some general issues

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Mental Resources (of subjects and organisations)

motivation

willingness to make an effort

ability to decide

Some general issues

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Time Resources (of subjects and organisations)

• leisure time

• work time

Some general issues

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Institutional Resources • certification

• quality standards and quality assurance

• information systems and transparency

• child care and nursing care arrangements

• dismissal protection

• norms of product liability

• learning capacity of the workplace, innovative work

environment conducive to learning

• personal development concept of the organisations

• rotation strategies (f.e. job rotation, enlargement,

enrichment)

Some general issues

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3. institutional/ supply-oriented financing versus demand-

oriented financing

– steering implications of money flows to the institution or to the

customer

– institutional financing: input or output (performance) oriented

– demand oriented financing: empowerment of learners

Some general issues

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Some general issues

4. What are the aims resp. goals of financing modes?

• Encouraging lifelong Learning (of individuals, suppliers and firms)

• increasing internal and external efficiency

• fostering innovations

• supporting the integration of general and vocational educational offers

• strengthening of the individual decision power and personal development

• supporting equal educational chances and the reduction of social inequality

• strengthening democratic consciousness and social cohesion

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5. Who could pay for LLL?

• the individuals resp. learners or related persons

• the total work force or groups of the work force (f. e.

employees or blue collar workers or civil servants)

• private organisations (f. e. companies, foundations,

NGO‘s)

• the state at different levels (national, regional, local)

Some general issues

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6. The types of transaction

• market price

• fees or dues

• taxes (general or special)

• levies (upon the work force or part of it or upon employers)

Some general issues

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7. Which sources can be exploited?

• current income (from labour or capital)

• past income (from savings)

• future income (by lending)

Some general issues

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Financing ALCT: the space of revenues and expenditures

by economic unit (financial resources)

Economic unit Revenues from Expenditure for

Learners/ families Current income: wage, salary,

income from rent, interest or

grants

Past income: former savings,

heritage, drawing right account

Future income: loan, credit

Tuition fees, interest on loans,

amortisation of loans, general

taxes (pro rata) or earmarked

education tax, drawing right

contributions, saving account

contributions, cost of living

Tuition fees, cost of living,

Tuition fees, cost of living

Workers/ employees Current income: wage, salary,

income from rent, interest or

grants

Past income: former savings,

heritage, drawing rights

Future income: loans, lending

Tuition fees, interest on loans,

amortisation of loans, general

taxes (pro rata) or earmarked

education tax, drawing right

contributions, saving account

contribution, cost of living

Tuition fees, cost of living,

Tuition fees, cost of living

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Private organisations Employers

Employers associations/

employers’ educational funds

Unions

Churches

NGO’s/ Welfare Organisations

Donors

Sales, rent, interest, tax/ levy

exemption/ reduction/ rebate

from state or educational funds,

grants/ subsidies/ premium

Employers’ contributions, fees,

sale of counselling services and

own education programmes, tax

exemptions/ reductions, rebates

Member contributions, fees,

sale of counselling services and

own education programmes, tax

exemptions/ reductions, rebates

Contributions, fees, donations,

taxes from members

Contributions/ donations from

individuals or organisations,

sales of counselling services,

tax exemption or reduction,

state subsidies

Contributions/ donations from

individuals, organisations or

states, sales of counselling

services, tax exemption or

reduction, state subsidies

Expenditures for learning of

staff (fees, take over of loan

interest or loan amortization,

selective grants to staff

members, general (pro rata) or

education tax, levy contribution

to state or learning funds),

contributions to drawing rights

or individual educational saving/

individual learning accounts

Contributions/ grants or loans to

supra-firm training institutions,

general tax (pro rata), selective

grants or loans to learners

Contributions/ grants or loans to

supra-firm training institutions,

general tax (pro rata), selective

grants or loans to learners

Expenditures for own learning

institutions and programmes,

selective grants or loans to

learners

Expenditures for own learning

institutions and programmes,

selective grants or loans to

learners

Expenditures for learning

institutions and programmes

(capital investment/

infrastructure), selective grants

or loans to learners


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State National level, regional

level, community level

Tax revenues from the tax

system (general taxes,

special taxes, education

taxes), revenues from

educational levy systems,

sales of public services

against fees, foreign aid

(EU)

Expenditures (capital and

recurrent) for own learning

institutions, revenues

foregone by: tax exemp-

tions/ reductions/ rebates

to learners/ workers/

employees/ employers/

associations (employers,

unions), NGO’s, churches;

matching grants or cate-

gorical aid, grants or loans

to learners

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8. Who benefits from financing LLL?

• Who are the groups who benefit?

– directly: the learners, the lenders

– indirectly: partners, children, employers, the state, he society

• How large are these groups, who belongs to them?

– can be assessed for learners and lenders

– diffcult to assess for indirect beneficiaries

• How large are their benefits?

– may be assessed by learners and lenders

– difficult for others

Some general issues

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9. The connection between the financing sources and the

beneficiaries

• The pay - as -you - use principle

• The ability - to - pay principle

Some general issues

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10. Who bears the financing burden? The problem of shifting the burden and of the cost incidence

– the shifting power of the learners (tax relief?)

– the shifting power of the working people (by collective negotiations?)

– the shifting power of the employers (by pricing to consumers)

– the shifting power of the state (to the tax payers)

– as tax paying employers can shift the burden, the burden ends up on the shoulders of the consumers, but the distribution of the burden among them is not known and very difficult to assess.

Some general issues

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Monetary Resources

Self financing by the learners from

current income (from own work, partners, parents, friends a. o.)

educational saving (past income, individual monetary learning

accounts) desaving resp. Individual drawing rights

loans (paying interest rates and repayments) in anticipation of

future income

incentives: expected cost - benefit – ratio < 1

fees as a deterrent, discouragement effect of loans?

Sources for mobilising resources

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Money Resources

single employer financing

from sales/ revenues, other income

from loans (repayment and interests)


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Money Resources

• Drawing rights (G. Rehn)

Funds / levies

legislative or tariff - contractual funds

centralised (f.e. national agency of labour or roof

organisation of the trade associations) or decen-

tralised (related to sectors, occupations or branches)

levy: percentage from sales or from value added or

from payroll


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Money Resources

Funds / levies

allocation alternative I: reimbursement of costs in terms of a lump sum or reimbursement of proven gross or net costs (full costs or partial costs) to organisations (supply resp. institution related allocation)

allocation alternative II: vouchers to organisations

allocation alternative III: vouchers to subjects / participants (demand resp. subject related allocation)


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State financing

demand related

vouchers, uniform or income dependent (whether and to what extent)

saving premium, once or permanent, also income dependent

loans

subsidies of interests (in case of loans)

income dependent repay-ment subsidies

tax relief/ reductions (spe-cial expenditures, pro-fessional outlays)

tax exemptions

Money Resources


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State financing

supply related

vouchers to SME’s resp. to organisations

loans to SME’s resp. to orga-nisations

interest subsidies to SME’s resp. to organisations

subsidies to continuing training costs of SME’s resp. of organisations (lump sum or percentage or proven)

one-time or permanent premium or permanent subsidies (lump sum or per participant) in case of pro-grammes resp. offers for certain target groups

incentives to SME’s resp. to organisations

Money Resources


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State financing

supply related

tax relief through accepting educational costs of em-ployers as regular firm costs, which lower profits and taxes on profits

reserve fund for lifelong learning (tax reducing)

tax deductions (of acknowledged training costs or of a lump sum)

investment reserve fund for inner-firm accumulation of human capital (reducing taxes on profits)

Money Resources


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Time factor resources

paid educational leave arrangements on a legislative or tariff-

contractual basis

Individual learning time accounts on a legislative, tariff-

contractual or firm-contractual basis

individual learning time accounts at the firm level

learning time accounts at the federal agency of labour (or at

any other agency) requires the combination resp. integration

of learning time accounts (LTA) with monetary learning

accounts (ILA)


Thank you very much for your

attention!

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TARGET GROUPS characte- mental institutional time

istics resources resources resources self financ. Funds/ levy employer fin. d-rel. st-fin s-rel. st-fin

I. employed

1. worker

2. employees

3. civil servants

4. managers

5. academics

6. women

7. foreigners (male)

8. foreigners (fem.)

9. self employed

10. talented

11. master

II. not employed

1. Beginners (fem.)

returners (fem.)

2. unemployed

2.1 workers

2.2 employees

2.3 women

2.4 academics

2.5 foreigners (fem)

2.6 migrants

III. SME's

IV. Branches

V. Firms general

monetary resources and financing instruments

matrix: target groups, characteristics, resources and financing instruments, Table 1

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older (50 +) low occupat. without voc. low schooling part time child / nursing vocational learning time

TARGET GROUPS workers status education degree employment care education need

I. employed

1. worker * * * * * * 2. employees * * * * * 3. civil servants * * * 4. managers * * 5. academics * * 6. women * * * * * * * * 7. foreigners (male) * * * * * * 8. foreigners (fem.) * * * * * * * 9. self employed * 10. talented * * 11. master * *

II. not employed

1. Beginners (fem.) * * * * * *

returners (fem.) * * * * * *

2. unemployed long.term

2.1 workers * * * * * *

2.2 employees * * * * * * 2.3 women * * * * * * * 2.4 academics * * * 2.5 foreigners (fem) * * * * * * * 2.6 migrants * * * * * *

III. SME's

IV. Branches

V. Firms general

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resources

institutional resources time resources (LTA's u. WTA's)

TARGET GROUPS tr., q., z. care arrangemlearn.rich WPpers. develop. legislative tariff-contract. inner-firm indiv. LTA integrated

regulation regulation regulation firm level LTA/MLA AoL

I. employed

1. worker * * * * * * * * 2. employees * * * * * * * * 3. civil servants * * * * * * * * 4. managers * * * * * * * * 5. academics * * * * * * * * 6. women * * * * * * * * * 7. foreigners (male) * * * * * * * * 8. foreigners (fem.) * * * * * * * * * 9. self employed * * 10. talented * * * * * * * * 11. master * * * * * * *

II. not employed

1. Beginners (fem.) * *returners (fem.) * * 2. unemployed

2.1 workers * 2.2 employees * 2.3 women * 2.4 academics * 2.5 foreigners (fem) * 2.6 migrants *

III. SME's * * * * * * * * *

IV. Branches

V. Firms general * * * * * * * * *


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monetary ressources and financing instruments

TARGET GROUPS Self financing Funds / levies

curr. income IES (Bank) MLA (AoL/st) loans ben-cost-ratiocentral/ partiallegislat./ tariff.cost-reimburs voucher dem. lump sum A AoL

I. employed

1. worker * S * * * * * (*S) 2. employees * S * * * * * (*S) 3. civil servants * S * * * * * (*S) 4. managers * S * * * * * (*S) 5. academics * S * * * * * (*S) 6. women * S * * * * * (*S) 7. foreigners (male) * S * * * * * (*S) 8. foreigners (fem.) * S * * * * * (*S) 9. self employed * S * * * * * 10. talented * S * * * * * (*S) 11. master * S * * * * * (*S)

II. not employed

1. Beginners (fem.) * * * * * (*S)returners (fem.) * * * * * (*S) 2. unemployed

2.1 workers * * * * * *S/L 2.2 employees * * * * * *S/L 2.3 women * * * * * *S/L 2.4 academics * * * * * *S/L 2.5 foreigners (fem) * * * * * *S/L 2.6 migrants * * * * * *S/L

III. SME's * * * * * *

IV. Branches * *

V. Firms general * * * * * *


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resources and financing instruments

TARGET GROUPS single employer financing state financing

from sales loans demand related direct indirect

I. employed vouchers subsidies premia loans tax relief

1. worker * * * * * *

2. employees * * * * * * 3. civil servants * * * * * * 4. managers * * * * * * 5. academics * * * * * * 6. women * * * * * * 7. foreigners (male) * * * * * * 8. foreigners (fem.) * * * * * * 9. self employed * * * * * * 10. talented * * * * * * 11. master * * * * * *

II. not employed

1. Beginners (fem.) * * * * * *returners (fem.) * * * * * * 2. unemployed

2.1 workers * * * * * 2.2 employees * * * * * 2.3 women * * * * * 2.4 academics * * * * * 2.5 foreigners (fem) * * * * * 2.6 migrants * * * * *

III. SME's * *

IV. Branches

V. Firms general * *


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TARGET GROUPS resources and financing instruments

supply related, direct indirect

I. employed vouchers subsidies premia cost subsidies loans acc. firm costs reserves tax deductionsinvestm. Res.

1. worker

2. employees

3. civil servants

4. managers

5. academics

6. women

7. foreigners (male)

8. foreigners (fem.)

9. self employed

10. talented

11. master

II. not employed

1. Beginners (fem.)

returners (fem.)

2. unemployed

2.1 workers

2.2 employees

2.3 women

2.4 academics

2.5 foreigners (fem)

2.6 migrants

III. SME's * * * * * * * * *

IV. Branches

V. Firms general * * * * * * * * *


Documents

Mobilising and increasing financial resources for Lifelong … · 2015-09-11 · Unesco Hamburg 1 by Prof. Dr. Dieter Timmermann Bielefeld University School of Education Mobilising