Schools do not save up operating surplus

22/04/2008 15:00

Although schools in secondary and tertiary education often have an operating  surplus at the end of the year, they do not always save it up. Most schools use the money to invest in buildings or equipment. As investments were considerably larger than the operating surplus in 2006, schools borrowed more money.

Operating result

Operating result

Positive operating result

Schools in secondary and higher education have consistently had positive operating results in recent years. In 2006, secondary education realised a surplus of nearly 193 million euro, and tertiary education a surplus of  213 million euro. The situation at some individual schools may deviate from the overall trend.

Net investment by secondary and tertiary education

Net investment by secondary and tertiary education

Investment higher than operating surplus

Net investment by schools in secondary and tertiary education amounted to 671 million euro in 2006. This is substantially more than the operating surplus of 406 million euro. The education sector has invested more in buildings and in equipment such as furniture, teaching materials and computers in recent years. Regional education centres (roc’s) invested large amounts in new buildings in 2006. Part of this investment was financed from their own funds.

Changes in net debts

Changes in net debts

More debts

In addition to their own capital, schools used loans to finance their investment. In recent years in particular debts have been rising more than receivables. As a result the net debt of schools has increased. In 2006 the difference between receivables and outstanding debts rose by 379 million euro. Debts in vocational education, adult education and universities in particular rose substantially.

Broos Brouwers