Youth Organizations Demand Budget Reform, Threaten High Court

Two Israeli youth organizations, 'Perach HaDegel' and 'Emek LeYaakov BeYisrael,' have formally requested that the Ministry of Education revise its youth organization funding allocation methods, effective for the 2026 budget year. In a pre-litigation letter sent this week, the organizations argue that the current criteria do not accurately reflect the actual number of participants and have unfairly disadvantaged organizations experiencing growth for years. The appeal, submitted through attorney Yehuda Abeles and addressed to Education Minister Yoav Kisch, his ministry's director general, the head of the Society and Youth Administration, and other officials, seeks to prevent the distribution of the full remaining budget by the Support Committee, which was scheduled to meet on Thursday. The organizations propose distributing approximately 10 million shekels for ongoing activities and holding back an additional 40 million shekels pending a resolution of their claims. Alternatively, they demand a recalculation of the 2026 budget based on verified participant numbers, without growth caps or branch limitations.

The core of their grievance lies in the current funding formula, which they claim undervalues the number of participants and fails to recognize full growth. 'Perach HaDegel' reports having around 60,000 participants across approximately 260 branches in 42 localities, including special education students. The current criteria allocate 30% of the budget based on participant and young instructor numbers, 20% on activity centers, and 7% equally among organizations, with the remainder based on other activities. The organizations contend that growth caps disproportionately affect larger organizations: those with 1,000-6,000 participants can have up to 15% annual growth recognized, 6,001-20,000 up to 10%, and over 20,000 only up to 5%. This, they argue, leads to a cumulative gap between actual activity and budgeted funding, as demonstrated by 'Perach HaDegel's' 19% growth between 2023 and 2026, exceeding its recognized annual limit.

Furthermore, the organizations criticize the limitation on the number of recognized branches per locality, which allows only one activity center per 5,000 students. They report that in 2024, 82 out of 234 submitted branches were disqualified, and in 2025, 76 out of 252 were rejected under this rule, citing specific examples in cities like Beitar Illit, Beit Shemesh, and Bnei Brak. They assert that these branches are active but are not recognized for funding calculations, impacting their share of the budget component allocated by activity centers. The letter also vaguely suggests that this branch limitation may not be applied equally to organizations in Arab localities. The organizations also presented calculations based on data allegedly provided by the Minister of Education to the Knesset in June 2023, indicating that in 2022, large organizations (over 15,000 participants) received an average of 224 shekels per participant, compared to 609 shekels for small organizations (up to 5,000 participants), a difference of 2.7 times.

The organizations highlight past efforts to address these issues, including correspondence since 2020 and a meeting with Ministry of Education officials in July, where they were reportedly told a resolution would take about 1.5 months. They also point to a coalition agreement clause from 2023 mandating the establishment of a team to promote equitable distribution among youth organizations, which they claim has not been fulfilled. A recent Ministry of Education consultation process, initiated on October 7th, invited suggestions for changes to funding criteria, including branch limitations and budget allocation mechanisms, but the ministry stated no changes were guaranteed until a revised framework was finalized. The organizations fear that distributing the remaining 2026 budget before this consultation concludes could prevent practical adjustments this year. They cite the 'New Path' program for Ethiopian youth as an example of a system that allocates funding based on relative participant numbers without growth caps, demonstrating the ministry's capability for such adjustments. The funding disparities, they argue, result in fewer instructors, reduced activities, and increased participation fees for families.

In their concluding demands, the organizations call for the formation of the coalition-agreement team, their inclusion in developing revised criteria, and the immediate release of undisputed budget portions. They also request supplementary funding to address existing gaps without negatively impacting other organizations. The deadline for an urgent response was October 14th, before the Support Committee meeting. The organizations have declared their intention to petition the High Court of Justice, including a request for an interim order, if a substantive response is not received.