The funding arrangements for post primary schools reflect the sectoral division of the second-level system. Funding provided to schools in the ETB, Community & Comprehensive sectors is primarily based on budgets determined by the Department. Voluntary Secondary schools in the free education scheme are funded by way of per capita grants.
At the core of these arrangements is reliance upon capitation as a key determinant of funding and enrolments are the main driver in the level of funding provided.
Some equalisation measures have been introduced to rectify historical inconsistencies in the funding arrangements for Voluntary Secondary schools. It is estimated that up to €21m has been provided in equalisation funding in the period up to 2009.
Furthermore, as agreed with the Joint Managerial Body (JMB), future improvements in equalisation funding is to be directed in the first instance at the elimination of the School Salary grant deduction from the capitation payable to Voluntary Secondary Schools. Therefore, Budget 2020 provided additional funding to cater for a 20% reduction in the School Salary Grant deduction from 1 September 2020. This brings the deduction down from €563 to €450.40 per whole-time equivalent teaching post.