DECENTRALIZATION OF SCHOOL GOVERNING OPENS NEW POSSIBILITIES Decentralization of vocational schools’ governing in Lithuania started two years ago. During this process vocational schools, previously subordinate to the Ministry of Education and Science, have been reorganized into self-governing institutions. That has provided municipalities, enterprises and other interested bodies with an opportunity to take part in the governing of VET institutions. Reorganization of VET schools into self-governing institutions began in 2003 with the implementation of the resolutions of the Government of the Republic of Lithuania, concerning decentralization and deconcentration of the functions of the centrally governed institutions. During the initial stage this status was granted to 8 vocational schools situated in different counties of the Republic. By 2008 the status will be granted to 10 more VET schools. The main administrative body in a public institution is the general meeting of the shareholders, each shareholder having a single vote. The meeting has the power to appoint and dismiss the head of the institution, to approve and amend the regulations, to confirm financial and activity accounts. The founder of the institution - the Ministry of Education and Science – becomes one of the shareholders. Thus, the municipality and social partners, being equal shareholders, gain the right to take part in administrating the institution alongside with its founder. That enables them to effectively respond to the needs of a particular region as well as to the changing requirements for the qualification of the graduates. One of the shareholders of our school is a privately owned construction enterprise. It has become obvious that the status of a self-governing institution changes the approach of the enterprise towards the VET institution. The school financed from the State budget is usually associated with a beggar, and its support is regarded as charity. However, as soon as the enterprise becomes a shareholder of an institution the material and other values of the latter are considered the capital of the enterprise. The shareholder has the right to sell or transfer its capital to other shareholders as well as to get its share back when the enterprise is liquidated. Thus, participating in the administration of a public institution, the enterprise employs its capital to invest into the training of its workers. That gives a chance for a VET institution to make use of the company’s equipment and its specialists’ experience. The described relationship between an enterprise and a vocational school is highly relevant to builder training in Lithuania. Construction companies are modernizing their equipment and technologies while vocational schools, that train workers for these companies, do not have such equipment in their classrooms and workshops yet. The status of a self-governing institution is crucial in dealing with this problem. A self-governing VET institution retains a remarkable independence. It can be a member of various non-profit making organizations, which provide the school with a better access to useful information. The head of a VET institution is granted the right to replace and confirm the staff. The estimate of such an institution consists of only two lines, i.e. only the amount of money for wages is fixed. The rest can be used at the institution’s own discretion. The head of the institution is authorized to make decisions and various transactions on behalf of the institution. That gives a considerable freedom and a possibility to react timely to the changing situation, yet it also requires a high qualification and responsibility for the decisions taken. Our experience of working in a self-governing VET institution has proved its vitality and relevance. Its status is the most appropriate while dealing with today’s problems and challenges in VET. Therefore, the government programme for 2004-2008 provides for further increase in number of self-governing VET institutions. Juozas Baranauskas, The principal of Vilnius Builder Training Centre, 2005