Fiscal decentralization of education: A social network analysis of values underlying local decision-making processes

Fiscal decentralization shifts financial responsibilities from central to local governments. Local policymakers make decisions based on diverse and sometimes conflicting values. Decision-making in public processes is inherently complex, involving a multitude of considerations and actors, like equity, liberty, efficiency, welfare, and security. Policymakers often face choices between competing values, necessitating compromises and prioritization. This study examines the values underlying the decision-making process of education policymakers in Israeli local authorities (LAs) through interviews. Using Mixed Method Semantic Network Analysis, we analyze these values and conceptualize different prototypes according to the LAs’ socioeconomic status (SES). We identify four prototypes that reflect values conflict: High SES LAs emphasize allocation to promote innovation or excellence and choice, while low SES LAs promote educational equity or needs-based funding. Our research highlights that fiscal decentralization may exacerbate SES-based resource disparities, thereby increasing inequity in education finance between LAs. This research offers valuable insights for socially diverse countries implementing decentralization in education finance policy.