Germany - Educational Finances

Educational finances

Education is the second largest item of public spending after social security and welfare and in the 1990-91 academic year amounted to 4 percent of GNP. Education is not paid for by local property taxes but rather out of general revenues. Since 1949 the federal government, the L�nder , and the local governments, including in some cases intercommunal single or multipurpose districts (Zweckverb�nde ), have shared in financing education. For elementary, primary, and secondary education, the L�nder and the local governments are the major funding sources. The L�nder are responsible for teachers' salaries, curriculum development, and the setting of standards and qualifications. Local governments are responsible for the maintenance and operation of school facilities. The L�nder remain the main source of funding for higher education, but the federal government also plays a role. In 1991 the L�nder paid about 74 percent of total education costs (68 percent in 1970); local governments contributed 16 percent (24 percent in 1970); and the federal government contributed 10 percent (8 percent in 1970).

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