131as a result of transfers and norms on per pupil expenditure. These developments are
evident in Zhaojue where we have compared conditions now with those two dec-
ades ago. Zhaojue is a state-level poverty-stricken county but is much richer than it
was in 1990. Education funding remains challenging but despite this most children
now attend school although too many still do not complete before dropping out. In
the words of a local education official in Zhaojue it is “a poor county that manages
comprehensive education. Although the foundation is poor, because of a series of
national preferential policies, education in Zhaojue has made great progress”. In Bier
district, another official rightly observed that “no matter which districts (villages or
towns) you go, you will find that the tallest and most beautiful building is school”.
There has also been substantial progress in Ansai of Shanxi Province. The qual-
ity of teachers has substantially improved in terms of qualification and supply, and
working conditions are much better. Thus, there are now no substitute teachers
in the complete schools in the case study area. The teacher qualification rate has
improved from 75 to 100 and 37 % are now college graduates. Teachers salaries
for public teachers were 172 yuan, and 79 yuan for substitute teachers in 1990 and
are now about 1200 yuan. The salary now excludes bonus payments and class fees.
6.3.3 Increases in Total Educational Investment
National expenditure has grown considerably and has promoted the development
of rural compulsory education. The “New Mechanism” resulted in 2007 in the
investment of 92.6 billion yuan to the benefit of more than 400,000 rural schools
and nearly 150 million rural primary and middle school students. The proportion
of the government budget to rural education rose continually and was over 80 % of
the total in 2006 (Liang 2008 ).
The source of funding of compulsory education fund is now guaranteed and
the amount remains high. In 2014, central finance for rural compulsory education
guarantee system was 87.9 billion yuan. At the same time the number of students
has fallen as a result of demographic transition thus increasing the amount avail-
able per child. Public funds benchmarked for every student in compulsory educa-
tion in rural has therefore increased. In the central and western areas, it is now 600
yuan in primary schools and 800 yuan in middle schools; in eastern areas, it is 650
yuan in primary school and 850 yuan in middle school.
These developments are evident in the case study areas in Tongzhou in Beijing
and Ansai in Shanxi province. In 1990, the public fund per student in Tongzhou was
13.4 yuan in primary school and 33.2 yuan in middle school. In 2007, public fund
had been increased dramatically and the average public fund for per student was
increased to 800 yuan per year in primary schools, and 900 yuan per year in middle
school. Ansai has also developed rapidly with large increases in educational fund-
ing. In 1990, non-government educational sources accounted for 31 % of total edu-
cational funds. Now government funding is the main source of school funding. In
1990, educational funds expenditure took only 19 % in local fiscal revenue. By 2008
the percentage was over 40 % and had been growing at over 15 % a year since 2003.
6.3 The Impact of the Reform of Management and Fund Guarantee System