Fiscal Deterioration Due to Government Revenue Decline, Shortfall Covered by Funds
Expenditure Restructuring and Budget Cuts... Continued Promotion of Customized Public Education Enhancement
The Ulsan Metropolitan Office of Education has prepared a budget of 2.2948 trillion KRW for the year 2025.
On the 6th, Superintendent Cheon Chang-su held a press conference at the Ulsan Education Office Press Center to announce the key details of the "2025 Ulsan Metropolitan City Education Special Account Budget Proposal."
Although the budget proposal for next year increased by 62.9 billion KRW (2.8%) compared to 2024, considering 169.4 billion KRW covered by the Financial Stabilization Fund and the Education Facility Environment Improvement Fund, as well as increases in personnel expenses and operating costs, it is effectively a substantial negative budget.
The education office’s finances are expected to become more difficult due to major revenue reductions such as free high school education costs and the sunset of local education taxes from tobacco consumption tax, along with continuous decreases in tax revenue.
With rising personnel costs and the expansion of Neulbom Schools, as well as the establishment of digital education environments, the financial burden on the education office is increasing as more projects necessary for the education field are added.
Funds that had been previously reserved are being continuously used to cover the shortfall in tax revenue, depleting reserves and further worsening the financial situation of the education office.
Accordingly, the Ulsan Education Office plans to fully implement the 2025 Ulsan Education Plan and national agenda while reducing general project expenses (excluding personnel costs and educational welfare) by 15%, restructuring expenditures, and cutting the budget to proceed with projects as planned, considering financial conditions.
The shortfall will be covered by utilizing 33.6 billion KRW from the Financial Stabilization Fund and 135.9 billion KRW from the Education Facility Environment Improvement Fund, totaling 169.4 billion KRW.
As major expenditure projects, a budget of 261.1 billion KRW has been allocated to support student-tailored learning, strengthening academic achievement through the continued operation of the one-class two-teacher system, and opening a public online school to operate online joint education courses.
Student life education will be strengthened through mental health management and mutual respect culture education, and reading and humanities education will be revitalized through campaigns such as proper speech and writing refinement. Customized sports activity spaces will be expanded, and a complex adventure experience facility will be established at the Ulsan Student Education Center to enhance students’ healthy growth and experiential activity opportunities.
A total of 265.4 billion KRW will be provided to support detailed educational welfare and create healthy schools. Free education for private kindergartens for ages 3 to 5, which began in 2023, will be completed in 2025, and the unit cost for free school meals will be increased to provide high-quality healthy meals. Improvements to school kitchens and gymnasium ventilation will continue to promote the health of students and staff.
Neulbom Schools will be expanded up to the second grade of elementary school, and 56.1 billion KRW has been allocated for education reform projects such as the introduction of Artificial Intelligence Digital Textbooks (AIDT) and digital education training for teachers.
To ensure students can learn in a safe and comfortable environment, 280.2 billion KRW will be provided to improve educational environments such as school heating and cooling facilities. To minimize learning interruptions and provide tailored education, a new alternative high school will be established using the special rooms of the existing Ulsan Goun Middle School, and new schools?Yaksu High School and the second Daun Elementary School?will be opened to continue the policy of fostering appropriately sized schools.
To gradually expand Ulsan’s educational infrastructure, projects such as the Ulsan Student Creativity Nuri Center, Children’s Reading Experience Center, and Ulsan Student Safety Experience Education Center will also proceed without delay.
Superintendent Cheon Chang-su stated, “The reduction in grants due to a sharp decline in tax revenue is causing a crisis in education finances, and the burden is increasing as we face a second consecutive year of tax revenue shortfall following last year.” He added, “The government must prepare special measures to stabilize local education finances, which are facing a serious crisis, and ensure education is a national responsibility.”
Superintendent Cheon emphasized, “We will improve the quality of education and strengthen the foundation for future education so that students can dream and realize various futures within the framework of public education.”
The Ulsan Education Office has prepared a second supplementary budget for 2024 amounting to 2.2618 trillion KRW, which is 61.5 billion KRW less than the first supplementary budget.
Due to decreased revenue, 55.3 billion KRW was cut reflecting differences in school facility construction bids and unspent balances, and an additional 37.1 billion KRW was cut through project plan changes and adjustments to continuing expenses to cover the revenue shortfall. The shortfall will be covered by utilizing 35.3 billion KRW from the Integrated Financial Stabilization Fund.
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