Primary schools on the verge of bankruptcy

The Irish Primary Principals Network, representing principals in over 3,000 schools across the country, today issued a stark warning that some schools face bankruptcy and may have to close unexpectedly next year.

"We are used to hearing calls for increases at this time of year when the Minister for Finance presents the budget. Most of these calls are deserving and valid. This call is different. Unless primary schools get a substantial increase in the grants allowed for basic running costs this year, some schools may have to close. There are schools out there on the verge of bankruptcy." said Seán Cottrell, Director of IPPN.

There are nearly half-a-million children in over 3,000 primary schools in Ireland. IPPN surveys show that most of these schools do not receive enough money from the state to cover basic running costs. In addition, schools only get the first half of this grant in January having been open since September of the previous year. "What business or household could manage like that. Pay all the bills from September 'til Christmas and not get a penny in until January?" said Mr. Cottrell.

A survey of 200 primary schools conducted by IPPN found that 97% of our primary schools do not receive enough to cover their basic running costs and 80% of schools depend on fundraising from parents to cover the shortfall.

Primary schools get €161 per child every year. This is to cover the basic costs of keeping the building open and operating so that teaching and learning can take place. It is meant to pay for heat, light, insurance, telephone, cleaning, and security as well as Art and Craft supplies, PE equipment, science materials, books, software and other educational resources for use by children. The average grant for the schools surveyed was €25,000. Their running costs averaged €48,000. The shortfall was €23,000 or nearly 100% of what they received from the Exchequer.

"This survey shows that our primary schools are receiving only half of what they need to operate." said Seán Cottrell. "Paradoxically, when a child leaves primary and starts in a second level school, the grant changes from €161 to €316. This begs the question: Does it cost less to heat, clean and insure a building with 200 four year olds than a building with 200 fourteen year olds? "

Almost half of the schools surveyed operate from a bank overdraft for part or all of the school year. Schools open each year in September but do not receive the first part of their capitation grant until January. "We are in the vicious circle that any fundraising goes into the black hole of an overdraft. The bank has refused us an extension to the overdraft facility and is looking to get us to take a Term Loan to help us." reported one principal. "But a Board of Management is not allowed to get into debt or to take out borrowings..."

"Water and waste charges are also becoming a major issue." said Larry Fleming, President of IPPN "Schools are being metered now and some have been asked to pay bills of €4,000 and €5,000. Schools are charged the same as a commercial business but we do not get any extra income to cover these new charges. One school was recently presented with a bill for €24,000 for water charges."

Mr. Fleming went on to point out that "Nobody has ever really looked at what it costs to run a school. There is no scientific basis for deciding that a grant of €161 per child is what it takes to heat, clean, insure, maintain and operate a school. IPPN has undertaken to do this research with an internationally recognised expert in this area. Early next year, we are undertaking the first serious research in this area in Ireland and we will be in a position to establish a proper basis on which to calculate the running costs of a school."

"If we are serious about education as a driving force for economic competitiveness, we must at a minimum double the investment in the basic running costs of schools. Schools are depending on the goodwill and financial support of parents to keep the doors open. This is not how it should be in times of prosperity." said Mr. Fleming.