Financial Implications of RTE on BPS schools in Shahdara

Jasraj Singh Bhinder 

Theme: Implications of changes in per child expenditure of budget private schools to ensure RTE compliance

Purpose
To compile a statement of current and future (to ensure RTE act compliance) expenditure per child of a selection of budget private schools in Shahdara and to understand its implication thereof.

What to expect in terms of output

A. A research article that provides three things
1. Generating a revenue expenditure model for the Budget private Schools that can be employed elsewhere to judge the financial implications of the RTE act compliance.
2. The effects of the same on budget private schools in Shahdara.
3. As a grass root study it can indicate towards the flaws in the structure of the RTE act and its unwanted consequences on BPS schools.

Points of Action

A. To compile major items of expenditure and revenue that are incurred by the budget private schools.
1. The items of revenue will have to be supplemented by information from the parents on any miscellaneous charges (like examination fees etc.) that may not be provided by the owners.

B. To prepare a selection of schools to be contacted from whom the data is to be collected.
1. The selection will be based on current fees charged and the time available to gather data from the schools.

C. To examine the RTE regulations and list out all the counts for which expenditure will have to raised to ensure compliance.
1. Cite all points clearly and mention which areas are of the most concern.

D. A detailed expenditure and revenue sheet for the chosen schools has to be prepared.
1. A future expenditure (RTE Compliant) and projected revenue (assuming that original margins are to be preserved)
2. The potential time required to break even.
3. Calculate the increase in fees required to fund the increase in expenditure.
4. Measuring the shortfall in financial assistance provided by the centre and state, if any.

E. Identifying the grass root financial problems being faced by the selected schools and its final effects on-
1. The amount payable by the parents after fee hikes.
2. Incentives for the owners to continue running existing schools or not.
3. Enrolment rates in BPS schools.

Research Methodology

A. Involves mainly primary methods with some secondary research also.

B. Primary
1. Involves going to the field to collect information on expenditure on the listed items by the selected schools.
2. Views of the owners of BPS schools and government authorities on the infrastructure guideline issued in the RTE act.
3. Going to the parents to evaluate the effects of an increase in fees on their personal finances.
4. Finding out the market rates of various items on which expenditure has to be incurred.

C. Secondary
1. Examining rules and regulations issued by the centre and the Delhi state on maintaining RTE complaint schools.

Feasibility Constraints

A. Time constraints may not allow the sample size of the schools to be very large. Hence it needs to be balanced in terms of location, student size etc.

B. The research uses some amount of mathematical modelling and care has to be taken to avoid any inconsistencies with procedure or method used.