Human resources management is a critical issue for supply and demand in elementary schools where strong and healthy citizens will be nurtured and educated. A steady condition of supply-demand decides educational quality and its performance. Thus, human resources planning and long-term budgeting of local governments are hot topics. In late 20th century, knowledge-based economy emerged, which drove authorities all over the world to make educational reforms. Taiwan is with no exception. Though educational reforms have been advocated everywhere in Taiwan since 1994, learning pressure of students still shows no signal of decreasing due to the setbacks from the parents, students and society under the new policy of diverse educational services . In recent years, educational system has to cope with some dilemma as follows： 1. Number of students in the right age decreases. 2. Schools in urban areas expand too much. 3. Schools with no economy of scale in rural areas will be scrapped possibly. 4. Private schools grow fast. 5. Gap between urban and rural areas enlarges. 6. Budget of compulsory education is deficient. 7. Teachers who can not retire because of budget deficiency lead to human resources disequilibrium. 8. An excess of qualified teachers bring more wandering teachers. 9. In addition, educational reforms also generate some problems. Part of local governments decides to recruit substitute teachers as replacement in order to solve financial difficulty, which seriously influences human resources structure of elementary schools. With regards to educational finance, budget deficiency in education is obvious over the past decades. Though the legislature has passed “the Act of Educational Budgeting ad Management”, helping “regional education development fund” subsidized more equally, either teachers eager to retire earlier or desperate to teach are dissatisfied. On the other hand, retirement system such as requirements, pension under the old regulations should be examined totally because of its increasing influence on supply-demand system of budgeting and human resources. Actually, such system should be discussed more widely because of its complexity and dynamic characteristics. This article is to use system dynamics as a model to construct a supply-demand structure of these two dimensions under the interaction of the above factors in order to have a better understanding of systematic behavior and simulate related policies.
