Osan City to Cut Education Budget by Over 20% Next Year

Osan City announced on the 25th that it will reduce its overall business budget by over 10% next year and cut the education budget—a key initiative of the fifth-term mayoral administration—by over 20%.

The city plans to compile next year's main budget at 252.6 billion won, a 1.9% increase from this year's 247.8 billion won.

The city projects that local taxes will increase slightly from this year's 78.4 billion won, while non-tax revenue is expected to decline by approximately 10 billion won from this year's 47.9 billion won.

Meanwhile, local education grants and state and provincial subsidies are anticipated to increase by over 15% from this year's 81.2 billion won.

However, state and provincial linked projects in welfare and health sectors have been increasing by over 10% annually, increasing the burden on the city's finances.

As own-source revenues decrease and dependent revenues increase, the city's financial self-reliance rate is expected to fall further—from 56.1% in 2011 to 46.1% in 2012 and 44.5% next year. The national average in 2011 was 51.1%.

Consequently, available funds for the city (70 billion won) will be reduced by over 10%, leading to cuts of over 10% in the overall business budget next year and reductions exceeding 20% in the education budget from this year's 12.2 billion won.

As a result, the city plans to scale back facility improvement projects and education programs at schools related to innovative education, a priority initiative of the fifth-term administration.