Private schools in Karnataka have raised concerns over the delay in reimbursement and the non-revision of Per Child Expenditure (PCE) under the Right to Education (RTE) Act, stating that the financial burden is increasingly being transferred to fee-paying parents.

School management associations have urged the state government to revise the reimbursement amount and clear pending dues to ensure the smooth implementation of the RTE scheme.
The issue was highlighted by the Karnataka Associated Managements of Schools (KAMS) and the Associated Management for Primary and Secondary Schools in Karnataka, which claimed that the reimbursement amount has remained unchanged for several years despite a significant rise in educational costs.
Under the RTE Act, private unaided schools reserve 25% of seats for children from economically weaker and disadvantaged sections. The government reimburses schools based on the Per Child Expenditure (PCE) determined by the state.
According to school management representatives, Karnataka has been reimbursing private schools for RTE admissions since the 2013-14 academic session, but the PCE has not been revised since 2017, even as operational expenses, staff salaries, infrastructure costs, and educational requirements have increased considerably.
School associations argue that the current reimbursement amount no longer reflects the actual cost of educating a student.
Representatives of private school managements stated that delayed reimbursement payments and an outdated PCE have created financial challenges for institutions. They claim that schools continue to provide education to students admitted under the RTE quota while waiting for government reimbursements, affecting their cash flow and day-to-day operations.
According to the associations, many schools are finding it increasingly difficult to manage recurring expenses such as teacher salaries, maintenance, utilities, and academic resources due to pending reimbursements.
School managements have also expressed concern that the funding gap created by lower reimbursements has indirectly affected families paying regular school fees. They argue that schools are often compelled to absorb the shortfall, which places additional pressure on their financial planning.
The associations have urged the government to ensure that RTE implementation does not create an unintended financial imbalance for private institutions or parents who pay tuition fees.
Association representatives have pointed out that the state's expenditure on school education has increased substantially over the past decade. They believe that the government should reassess the current Per Child Expenditure to reflect actual educational costs and ensure transparency in reimbursement calculations.
They have appealed to the government to review the reimbursement formula and release pending payments at the earliest so that schools can continue implementing the RTE provisions without financial hardship.
School associations have requested the Karnataka government to:
The associations maintain that timely financial support will help private schools continue providing quality education to students admitted under the RTE quota while maintaining financial stability.