Financing for equity in primary and secondary education
1. Education resources to subnational governments
2. Education resources to schools
3. Education resources to students and families
4. Social policies and family support programmes
Introduction
In Israel, the Ministry of Education (MoE) is the main government body responsible for financing education, including budget allocation and oversight. Local authorities (LAs) may provide additional resources beyond national funding, depending on their financial capacity.
The MoE determines school budgets using formulas based on the number of classes or students, adjusted for factors such as class size, school sector, and special education needs. For elementary and lower secondary schools, budgets are calculated mainly per class, with adjustments through an equitable, needs-based funding formula. High schools use a per-student formula with extra support for smaller schools, but the equitable needs-based formula does not apply at the pre-primary or high school levels. There are also special allocations for schools serving specific populations, such as new immigrants or certain religious communities.
Most of the school budget is provided by the central government, covering teaching staff and capital expenditure. Additional central funds are transferred to local authorities for technical operations and non-teaching staff. Some local authorities contribute supplementary resources based on their financial means, while parents and private donors may support extracurricular activities or facility improvements.
The OECD (2019) mapped public funding flows to public primary and lower secondary education institutions in Israel.
1. Education resources to subnational governments
General Balancing Grant
The distribution of government grants to local governments is primarily composed of transfers from the Ministry of Education and the Ministry of Welfare, with additional resources provided through a general balancing grant, other grants, and the Equalisation Fund grant, reflecting the significant role of central government funding for education and welfare at the local level, while equalisation and balancing mechanisms played a comparatively minor role in addressing local fiscal disparities.
The General Balancing Grant, established in 2017, is an equalising grant intended to reduce fiscal disparities across local governments. Funds from the grant may be used for any essential public services, including education. Allocation is based on population size, socioeconomic ranking, local revenue-raising capacity, and the cost of providing basic services. The formula ensures that municipalities with lower tax bases and higher needs receive more support, while wealthier municipalities receive less or no funding.
2. Education resources to schools
Prior to 2001, school funding in Israel was largely uniform per class, with limited additional support for disadvantaged students through special programme budgets for groups such as new immigrants.
2001 Shoshani Committee Reform
In 2001, the Shoshani Committee recommended reforming Israeli school finance policy to enable a more equitable allocation of resources. A one-stage progressive allocation mechanism was introduced for primary schools, assigning larger resources to students with greater needs. The needs-based formula included seven elements with relative weights: maternal education (15%), paternal education (15%), number of siblings (10%), new immigrant status (20%), immigrant from developing countries (10%), national priority status (20%), and periphery location (10%). Weights were derived from regression analyses correlating student background characteristics with achievement. Schools’ total teaching hours were calculated by multiplying the number of students by the school’s average index value. This approach allocated up to 60% more teaching hours to schools with a high share of less-advantaged students compared to schools with predominantly affluent students. The system applied to Hebrew-speaking and Arabic-speaking primary schools and was later recommended for middle schools. The reform was discontinued in 2006.
2008 Reform
A new school finance policy in 2008 introduced a two-stage mechanism. At the first stage, resources are allocated equally according to student numbers. At the second stage, the remaining budget is allocated using the Strauss Index, which considers four elements: parental education (40%), parental income (20%), periphery (20%), and continent of birth of the student or parents (20%). This system is less progressive, allocating only 5% of resources according to student needs.
The Ministry of Education launched the Marom Programme to promote educational equity. Introduced under the 2018–2019 Work Plan, the programme channels financial and pedagogical resources to schools serving less-advantaged students from kindergarten to grade 9. Target schools are selected based on socio-economic indices to reduce disparities in educational opportunities and outcomes. Funds are used to support differential teaching methods, strengthen teachers’ pedagogical skills and teamwork, and enhance school management and work processes.
3. Education resources to students and families
No information was identified on Ministry of Education initiatives providing direct resources to disadvantaged students and families at the primary or secondary levels.
4. Social policies and family support programmes
No information was found on government-financed initiatives with an educational focus that provide resources directly to disadvantaged students and families.
5. School meal programmes
YOCHA National School Meal Programme
Israel has operated a national school meal programme since 2005, providing hot lunches to students in preschools and primary schools, particularly in low socioeconomic communities and for children enrolled in extended school day programmes. The Ministry of Education is the main financier, with local authorities and parents contributing according to a cost-sharing arrangement based on municipal socioeconomic status—the government covering a larger share in poorer areas and parents contributing more in wealthier ones. The programme follows national nutritional guidelines set by the Ministry of Health. Menus are designed in line with these dietary standards, and the Ministry of Education issues tenders specifying nutritional criteria for food suppliers, under the supervision of nutritionists and specialists.
This profile was reviewed by Iris BenDavid-Hadar, Professor, Bar Ilan University.
