Analysis of Education Financial Restructuring Strategies to Increase Human Resource Quality in Riau Province

Abstract

The purpose of this study is to analyze the efficiency of secondary basic education financing in Riau province consisting of 12 districts/cities. Efficiency measurements by using analytical methods Data Envelopment Analysis (DEA). In 2010, there were three districts/cities have reached the level of efficiency that is Indragiri Hulu, Meranti Island, and Rokan Hulu. In 2011, there was only one area that reaches the efficiency of education spending, that is Dumai. Subsequently, in 2012 Dumai and Meranti Islands achieve efficiency of education spending. Districts/cities that do not achieve the level of efficiency should make improvements. Potential improvement district/city of Riau Province in 2010 is on the input side, example the budget reductions. While on the output side, in the year 2010 does not need to be repaired. In contrast to the potential level of improvement in 2010, the overall improvement potential is not only done on the input side, but on the output side must also be repaired. That is, in 2011 the whole district/city must fix education spending, school capacity (the ratio of students to total number of schools), and the capacity of teachers to handle the students (the ratio of the number of students to the number of teachers). The overall potential improvement suggests the need for improvement through reduction 39,45% of education expenses, increase school capacity by 60,17% and improve the capacity of teachers to handle the students was 0,37 %. That's all indicates that the need for revamping the persistence of wasteful spending that occurred in several districts/cities that do not achieve efficiency. In 2012 the overall potential improvement that needs to be done in the form of improved inputs namely reduction education budget by 98,83 percent and the ratio of students per teacher was 1.17 percent. The need to reduce the education budget indicates that the use of the education budget in most district/cities in Riau province does not produce the maximum output. In other words, the output in 2012 should be generated through the budget in question. Thus, the use of the education budget in 2012 in most of the district/city is said to be inefficient. In addition, the existing budgets need capacity building of teachers in dealing with students.