SEPT. 2, 2015

757 Schools will become free in 2016. The Inclusion Act will function as follows

At least 757 subsidized private schools will become free in 2016. This means that from March next year, 228,481 families will educate their children in these schools, free of charge.

Important aspects of the Law

Families will no longer be discriminated against

Families could have been discriminated against for sending their children to a school that receives public funding. For example, they could have been interviewed or documents could have been requested. Under the Inclusion Act families will choose the school for their children and not the other way around.

Gradual implementation of free education

The law allows schools to take many years to adapt to the new system. For example, free education will depend on the circumstances at each school, and although many will be free immediately in 2016, others may continue with contributions from families, which will gradually decline. The contributions from families will be replaced by public contributions.

The transfer of financial support from trustees within corporations or foundations may not be implemented until December 31, 2017, which is in two and a half years’ time.

Teachers and educational assistants will continue to work in their schools

Employees will continue working at each school, and the rights and obligations in their employment contracts and collective agreements will be maintained. This Act will not cause the termination of employment contracts.

School owners’ equity will be protected. They will be able to recover their investment, and be able to continue working in those schools whilst receiving a remuneration in line with market rates for their level of responsibility. There will be no public service positions, and the schools will not be acquired by the State.

The result will be better schools and more public resources

Resources will be used exclusively to improve education. Furthermore, the Act puts an end to the withdrawal of profits.

What will happen to private subsidized schools in 2016?

a. All public resources will be focused on improving the quality of education. Profits can only be withdrawn from shared funding, and only until December 31, 2017.

b. Non-profit institutions with a low family contribution of up to about Ch$5,500 per month shall be free of charge.

c. Those that charge today, but voluntarily want to become free from 2016, have until August 31, 2015 to give notice. It could be worth their while, as there are new contributions only available to free schools.

d. Those who wish to continue collecting contributions from families will be able to do so. The family contribution for 2016 will be the same as in 2015, adjusted for inflation.

What will happen to private subsidized schools in 2017?

a. The contribution from families will begin to be replaced by public resources. The family contribution will decrease to the same degree that the state subsidy increases. Therefore, the school’s income shall remain the same.

b. Schools voluntarily wishing to become free, may request it.

c. December 31, 2017 is the deadline for transferring the school administration to not-for-profit organizations.

Family contributions will begin to decrease from 2017. Their contribution for 2016 will be the same as in 2015, adjusted for inflation. The family contribution will decrease to the same degree that the state subsidy increases, because President Bachelet’s commitment was that each peso that the family stops contributing will be matched by the State.

Families can continue to contribute financially to the education of their children. The same funds that they currently pay to a school, can be channeled into sporting, cultural or artistic activities, and even donated to the same school to support extracurricular activities.

What will happen to private subsidized schools in 2018?

a. Making money from school education using public resources now ends, as the withdrawal of profits will no longer be permitted. All schools that receive public and family contributions shall be administered by not-for-profit legal entities.

b. Schools with family contributions of up to around Ch$11,000 per month will be free.

c. Schools voluntarily wishing to become free, may request it.

d. Schools who wish to continue collecting contributions from families will be able to do so, but the amount will reduce each year, as the State subsidy increases.