Profile Lyceums in the Allocation Formula for Education Subvention: A New Analytical Brief by Polaris Programme

Polaris experts have prepared an analytical brief, “Profile Lyceums in the Allocation Formula for Education Subvention”, dedicated to one of the key aspects of preparing for the upper secondary education reform – adapting education financing mechanisms to the introduction of profile lyceums.

The introduction of profile lyceums will mark the final stage of the New Ukrainian School (NUSh) reform. According to the plans of the Ministry of Education and Science of Ukraine, the reform will begin in September 2027 and will introduce a three-year upper secondary education cycle (Grades 10–12), profile-based learning, and expanded opportunities for students to pursue individual educational pathways.

One of the key challenges of the reform is ensuring its financial sustainability. In the brief, Polaris experts analyze how changes in the organisation of learning will affect the allocation formula for education subvention and what adjustments need to be considered when financing profile lyceums.

In particular, the document examines the features of the new learning model, under which part of instruction will be delivered not only in classes but also in smaller interclass groups. This approach is intended to provide greater flexibility in designing learning profiles and broader educational choices for students, while also requiring appropriate reflection in state financing mechanisms.

The brief also analyses the phased implementation of the reform during 2027–2029, when students following both the current curriculum and the new curriculum will be studying simultaneously within the education system. This transition period will require corresponding adjustments to budget planning and the allocation of education subvention.

A separate section is devoted to demographic projections and forecasts of student numbers through 2030. According to the analysis, the secondary education system will continue to experience the effects of demographic decline and migration processes, which will influence both student enrolment and education financing needs.

Based on demographic projections and the proposed funding model, the brief assesses the potential budgetary implications of the upper secondary education reform. The analysis shows that although profile lyceums will require additional resources, demographic trends are simultaneously creating fiscal space that can support the financing of these changes.

The Polaris Programme provides the Ministry of Education and Science of Ukraine with systematic support on issues relating to the funding of education and preparations for the implementation of the Upper Secondary Education Reform.

Click here to view the analytical report.

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