Funding Crunch in Education System
Why does education face a funding crunch. To me looking at real high level numbers it appears that overhead is way to high.
If the average teacher salary is 100k and you have 25 students per class average and the provincial funding level gives roughly $9500 per student that would mean each class would have a revenue of $237,500. In terms of a multiplier that is 2.3 times the cost of Salary. Compartively for business that don't produce an actual product this is a huge mark-up on Salary costs.
The 2.3 times multiplier also doesn't have to cover Capital costs for buildings which is covered by separate grants. So that makes it even lower cost to operate.
Consultancy firms will operate at a 1.5 to 2 multiplier and have to pay for the capital costs of their office space and still manage to make a profit. What costs are their in teaching that make it significanly more costly than other businesses especially considering they don't pay for classroom space. (I think they pay opex but not Capex).
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