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Communities in need: What happens to money for daycare centers and schools?
On February 13, 2025, “Ein Ort am Wort – Talk about it” will discuss the financing of early childhood education and municipal challenges.
Communities in need: What happens to money for daycare centers and schools?
In Austria, the financial situation of the municipalities is getting worse! Investments in kindergartens, road maintenance and new sports facilities are suddenly becoming a question of the future, as more and more municipalities are struggling with empty coffers. The challenges are enormous: facilities such as schools, child care, as well as sexual and cultural offerings are at risk orf.at reported. The focus is on current discourses about the sustainability of such offers and the rising costs of early childhood education.
The financing of this educational structure is increasingly viewed critically. Germany already spent around 18.4 billion euros on early childhood education in 2012, which corresponds to 0.7% of the gross national product. Overall, expenditure therefore exceeds the OECD average. From the point of view of Educator.de The main question is what role the public sector and parents should play in financing. The states are responsible for financing the daycare centers, with the municipalities covering over 58% of the costs. A new discussion is emerging about the federal government's strategic involvement in daycare financing in order to ensure reliable standards and fair financing structures.
Financing models under the microscope
Another key point is the way in which funds for daycare centers are distributed. There is subject-related and object-related financing - that is, whether money is allocated per child or per institution. While subject-related financing is considered demand-oriented, object-related financing carries the risk that funds flow regardless of actual use. Experts demand that future financing models must be adapted to quality standards and personnel needs in order to meet educational requirements.
The discussion about better financing of early childhood education in Austria and Germany will become increasingly urgent in the coming times. The questions are clear: How do we ensure the financial security of the daycare centers? How do we ensure that every place in Austria can offer the same quality standards in early childhood education? orf.at and Educator.de have compiled initial approaches and current figures.