São Paulo's Legislative Assembly approved a constitutional amendment (PEC) proposed by Governor TarcÃsio de Freitas, allowing a shift of funds from education to healthcare.
This amendment reduces the mandatory education budget from 30% to 25% of the state's net revenue, potentially freeing up approximately R$11 billion annually.
Governor TarcÃsio argues that the state's healthcare needs currently outweigh those of education and claims this is a necessary budget flexibility adjustment. He points to changing demographics, including a declining birth rate and aging population, as justification. He also highlights a proposed increase in the overall education budget for 2025.
Opposition parties argue that the amendment is a setback for public education, resulting in reduced resources for already struggling schools and that the necessary funds for healthcare could come from other sources, like reviewing tax breaks.
Concerns were raised regarding the possible use of this amendment to justify privatization of education and to circumvent legal challenges concerning spending on retired personnel.
The PEC passed with 59 votes in favor and 19 against, despite protests from education groups. The delay in the voting process is attributed to the municipal elections. Although a budget increase is proposed for education in 2025, the amendment potentially decreases the investment in education by a significant margin.