Generally, local governments are responsible for providing basic education. Local governments (education providers) assign pupils a place in a local school, but pupils are free to enrol in another school if it has places available. In 2009, there were a total of nearly 3 100 comprehensive schools, and the network covers the whole country. 45 per cent of the schools accommodate less than 100 pupils. The largest schools have over 900 pupils. During the past few years, the tendency has been to cut down the number of schools through closures, especially of the smallest ones. Since 2004, the total number is down by appr. 500 schools.

Pre-primary and basic education are funded as part of the System of central government transfers to local government. Calculating the general transfers, and granting the municipalities the money is the responsibility of the Ministry of Finance. Provisions on state grants to basic municipal services are stipulated in the Act on Central Government Transfers to Local Government, and the Act on the Funding of Educational and Cultural Services, administered by the Ministry of Education and Culture.

The calculation of financing takes into account the number of 6 to 15 year old inhabitants of the municipality, which will be multiplied by the basic price for pre-primary and basic education as determined by the Ministry of Finance for every fiscal year.

The purpose of the central government transfers is to even out differences between municipalities with diverging revenue and cost structures and service needs. Hence, the final grant also relates to various circumstances and other factors affecting the costs of services. Adjustments take into consideration the density of the municipality, bi-lingual population, and the location of the municipality in a hard-to-reach archipelago, and numbers of Swedish-speakers and those who have a foreign language as their mother tongue in the age cohorts of 6 to 15 year olds.

The distribution of costs between local and central governments is stipulated in the Act on Central Government Transfers to Local Government. The government transfer covers 34 percent of the calculatory costs while 66 per cent remains with the municipality.

The municipalities can also receive additional payments related to any specific functions that are not covered by the government transfers based on age cohorts. These would be functions such as provision of additional basic education (10th grade), prolonged compulsory education (applied to children with major disabilities), preparation of immigrants for basic education, boarding schools, reform schools, and the like. These transfers are based on the numbers of pupils in need for such provisions and the prices determined per pupil. Additional funding is administered by the Ministry of Education and Culture.

 Numbers of comprehensive schools, pupils and leaving certificates in basic education, years 2005-2009

Source: WERA Information Service, Finnish National Board of Education

Private provision

In addition to public provision, there are nearly 90 private education providers, with a student population of ca. 14 000. They may deliver pre-primary and basic education throughout the grades 1 to 9 or only in the grades 7 to 9. Some also offer general upper secondary education. A number of the providers are folk high schools and adult education centres that among other provision provide basic education, especially for mature and immigrant students. Private provision is often run by associations and societies with a religious basis or based on a certain language (English, Russian, and German) or Steiner pedagogy. Six of the private providers are offering basic education for those who have needs for special support and care, run by one major foundation, associations and societies.

Private education providers are licensed by the Government. A private provider of basic education is usually required to have a contract with a local authority. If the education is deemed to serve a national need for education, however, a contract with a local authority is not necessary.

The private schools follow the same legislation and national core curricula as public schools. The Basic Education Act governs all basic education irrespective of the provider. The tuition must be free of charge and the provision of education cannot produce profit. Private schools whose instruction is a foreign language can collect tuition fees.