Chapter 693: Planning 'Zero-Fee Education

On May 6, the director of the Provincial Education Department, Wen Chaozhi, came to the Provincial Committee to report on the implementation plan for 'zero-fee' education; Lu Fan specially summoned Governor Luo Shiyu, Deputy Provincial Governor Zhang Rongqiu, and the director of the Finance Department, Sun Guoren, to discuss it together.

After everyone arrived, Lu Fan smiled and said, 'At the last Standing Committee meeting, I proposed province-wide zero-fee compulsory education; Comrade Wen Chaozhi has already drafted the plan. Let's listen together to see if it's workable and feasible, and help him fill any gaps.'

Wen Chaozhi reported, 'Following the Provincial Committee's arrangement, the Education Department visited dozens of schools and tens of thousands of families. Based on extensive research and repeated demonstration, we have drafted our province's zero-fee implementation plan. I will now report the specific details to all leaders; any shortcomings are welcome for criticism and correction.'

Lu Fan interrupted, 'Stop beating around the bush; get straight to the point. Ideally, go item by item, stating how much money each item requires from finance.'

Wen Chaozhi was not at all embarrassed; he felt that courtesy must not be abandoned, and furthermore, criticism from leaders is the greatest care!

He then immediately produced the second plan and continued reporting, 'Starting in autumn 2004, the province implemented the "two exemptions, one subsidy" policy: free textbooks, waived miscellaneous fees, and a living subsidy for boarders. This policy has been in place for over twenty years, so I won't repeat it. Below I will report the newly added free items:'

First, teaching aid material fees: for students in compulsory education, each subject will receive free teaching aid materials, selected and uniformly purchased by the Provincial Education Department and distributed together with textbooks. The estimated cost is 40 yuan per person per subject, totaling around 2.5 billion yuan……

Hearing this, the director of the Finance Department, Sun Guoren, felt a pang of pain and couldn't help saying, '2.5 billion? That seems excessive.'

Lu Fan glanced at him, displeased, and said, 'Major national affairs prioritize education; any amount spent is worthwhile! However, 40 yuan per subject is indeed too much. Wen Chaozhi, given the variety of teaching aids, you should combine the actual conditions of grassland education to select the most suitable materials for grassland children. Moreover, you can organize experts and scholars to develop and print the teaching aids yourselves to drive down the price; I estimate about 20 yuan per subject would be appropriate.'

Wen Chaozhi replied without hesitation, 'Okay, Secretary, I will start arranging this work when I return today and will certainly keep the cost under 20 yuan per subject. This way, the projected expenditure on teaching aid materials will be 1.25 billion yuan.'

Lu Fan gave a slight nod, signaling him to continue.

'Second, school supplies fees: centralized bulk purchase, estimated at 20 yuan per student……'

Sun Guoren couldn't help but say, 'Again, 178 million yuan!'

Wen Chaozhi glanced at Lu Fan and continued reporting, 'Third, exercise book fees: about 10 yuan per student, with a projected total of 89 million yuan;'

'Fourth, after-school extended service fees: an average of 570 yuan per student. The current provincial finance subsidy standard covers 60%; if we subsidize the remaining 40%, an additional 2.029 billion yuan of fiscal input is required.'

Seeing Sun Guoren's 'toothache' expression, Lu Fan interrupted, 'Let me say a few words about after-school extended services. I once served as director of the Education Department and have a deep understanding of this issue, but I have never found the time to address it.'

First, let's discuss the purpose of after-school extended services: mainly to solve the problem of parents picking up and dropping off children, to alleviate parents' burden, and also to improve students' academic performance and cultivate their interests and talents.

But now, after-school extended services have become a means for schools and teachers to generate revenue. I know some schools use this as an excuse, cutting part of the daily ten-plus classes and then offering them as extended services for a fee. Schools have also issued intention letters that must be signed regardless of agreement, resulting in all students in a class being required to attend after-school extended services, turning a beneficial policy into a harmful one.

Moreover, some schools have unilaterally expanded the scope of fees for after-school extended services and raised the standards, thereby increasing parents' burden. It's shameless; how could parents not complain?

At the elementary school next to our provincial government, I had Cheng Haohao look into it; the extended service fees are distributed according to the 631 plan: 20% to homeroom teachers, 500% to subject teachers, and 30% to school leaders.

This is blatant profiteering! And 'uneven distribution of the spoils'! Homeroom teachers and frontline instructors naturally contribute the most time and effort, yet what gives school leaders the right to take 30%? How thick-skinned! I truly speak up for the homeroom teachers and instructors.

I hereby stipulate that 90% of after-school extended service fees shall be used to subsidize teachers directly involved in the service, with the remaining 10% covering school expenses incurred during the service period.

Furthermore, after-school extended services must follow these three points: 1) the principle of parental voluntariness; 2) all after-school extended services shall be converted into interest classes, with no new lessons or homework, eliminating the transformation of extended services into collective teaching or 'make-up classes'; 3) no fees shall be collected from parents for after-school extended services, and funds shall be disbursed strictly according to the standards set by the Provincial Finance Department, genuinely alleviating parents' burden.

These three points must be strictly enforced; the Education Department should conduct both overt and covert inspections, and upon discovering any violation, investigate and punish it severely, with no leniency.

Wen Chaozhi continued reporting, 'Fifth, summer and winter vacation homework: projected 445 million yuan; sixth, full subsidy for boarders' accommodation: projected 850 million yuan……'

These eight items together require a projected fiscal investment of 5.5 billion yuan.

After a moment's thought, Lu Fan said, 'Wen Chaozhi, to achieve big results with small spending, let's develop the summer and winter vacation homework ourselves; the cost per copy would be just a few yuan.'

'Okay, Secretary, we'll save wherever we can!'

Lu Fan turned his gaze to Luo Shiyu and asked, 'Governor Luo Shiyu, please share your opinion.'

Luo Shiyu tapped his fingers on the desk, sighed, and said, '5.5 billion yuan puts great pressure on the finances! Last year, the province's total general public budget revenue was 3,151 billion yuan, setting a new annual high with a year-on-year increase of 3%.'

Looking at major expenditure guarantees, the province's general public budget expenditure was 6,950 billion yuan, up 9.2 billion yuan year-on-year. Of this, 2,381 billion yuan went to the coordinated guarantee of the 'five major tasks,' which is indispensable; the vast majority of the remainder went to the 'three guarantees' expenditure, with education spending growing by 1.6%.

Our province's fiscal self-sufficiency is insufficient, and we rely heavily on higher-level government subsidies and transfer payments. A sudden increase of 5.5 billion yuan in expenditure leaves me at a loss as to which areas to cut; it's like one radish per hole!

Finance Department Director Sun Guoren echoed, 'Secretary, after economic growth slows, all tax categories continue to decline, and our province's public budget revenue shows a low-speed growth trend. Excluding transfer payment funds, we face a significant shortfall where revenue fails to cover expenditure.'

From January to May, local fiscal total revenue was 1,075 billion yuan, up only 0.1% year-on-year, far below the 15% total revenue growth target set at the beginning of the year. The Provincial Finance Department has already strengthened revenue collection to ensure that the first-half budget achieves 'both sides over half'.

The additional 5.5 billion yuan of fiscal expenditure is indeed difficult to sustain!

Hardly had he finished speaking when Sun Guoren saw Governor Luo Shiyu glare at him fiercely, and he immediately felt a pang of anxiety.

Some difficulties can be emphasized by the governor, given their equal rank. 'Such a petty finance department director—where does he get the nerve?' It's truly a case of overstepping one's position.

Luo Shiyu clearly understands that the 'zero-fee' education is a livelihood project that Lu Fan has resolved to implement, and he also knows that Lu Fan is preparing for the upcoming leadership transition; even if there are difficulties, he must grit his teeth and support it.

She raises difficulties merely to earn Lu Fan's gratitude—what business is it of yours, the finance department director? Who do you think you are? If he's displeased, he could replace you with an obedient person as finance department director—what would you do then? It's utterly pointless!

Lu Fan gave Sun Guoren a meaningful glance and said, 'In recent years, various regions have relied on land finance and the model of operating cities to achieve rapid GDP growth, causing local fiscal revenues to surge, making life extraordinarily comfortable.'

However, once economic growth slows, real estate regulation tightens, and the land market turns cold, local governments fall into a quagmire of stagnant growth. Although 'strengthening revenue collection' may meet short-term fiscal revenue growth targets, it exacerbates burdens on enterprises, sowing greater hidden risks for future development. Clearly, this approach must be exercised with extreme caution.

In the coming period, pressure from reduced revenue and increased expenditure will persist, leaving fiscal operations in a tight balance. The greater the fiscal revenue-expenditure pressure, the more we must insist on the government living frugally, using saved funds for people's livelihood welfare, and achieving thriftiness that benefits the populace.

On one hand, provincial finance should optimize the expenditure structure, by compressing general outlays and protecting key priorities, so that limited funds are used where they matter most;

on the other hand, we must strictly control government expenditures, vigorously compress general spending—cut what should be cut, reduce what should be reduced—to lower administrative operating costs;

on the other hand, we should implement performance management to improve fund utilization efficiency. In situations where fiscal revenue-expenditure contradictions are particularly prominent, we must especially emphasize 'spend money must be questioned for effect; ineffective spending must be questioned for responsibility,' accelerate the establishment of a comprehensive, full-coverage, full-process budget performance management system, vigorously cut low‑ineffective expenditures, ensure every penny yields benefit, and guarantee that fund use meets expected targets.

I propose several hard requirements: first, no new government‑owned buildings shall be constructed; second, personnel supported by the finance department shall only be reduced, not increased, with this year's target being a 20% cut in the establishment numbers and all contract staff cleared; third, publicly funded receptions, overseas trips, and vehicle purchases shall only be reduced, not increased.

This is all about finding every possible way to compress government administrative expenditures and avoid unnecessary waste. Local governments must also change their extravagant habits, endure a hard‑won frugal life, and devote precious fiscal funds to where they matter most.

At the same time, we must abandon the illusion of relying on land finance and investment‑driven economic growth, respect the laws of market‑economic development, adopt measures akin to 'releasing water to nurture fish,' and give businesses a chance to rest and recuperate.

At this juncture of difficulty, enterprises are precisely in need of government support. The government should seek ways to lower business operating costs and help enterprises weather the storm together, rather than exploiting the crisis to raise taxes and push companies to the brink of a cliff.