Republic of Croatia is facing with ineffective public consumption in education plans. Government is trying to make changes in education system which would lead to creative model of studying. Education is funded from the public sector in the whole world, and it is the main activity of the sector. Every child is obligated to go to school until the certain age. Every attendant can choose if wants to go to public or private school. Croatian education system is mostly funded from the public sector just like the rest of the countries in transition and the main part of European countries. To see the changes in the system, it is necessary to compare supply and demand on the labor market, to control the quality of education system, to eliminate bride and corruption and to set clear goals that each individual education program needs to achieve. The chronical lack of money, outgrown education plans and programs, to wide content and too much classes, underplayed teachers with degraded position in society, unhappy students who complain for years about learning things that are not necessary, and would not be used in real life, that is the picture of state that Croatian education system is in currently. The quality of human resource is key in quality education. It is not about the teachers only, it is also about the quality of managing school, the whole degree of usage of the resources is depend on. The net of schools need to be optimized. The optimization of the net is the big problem for Croatian education which would lead to saving a lot of funds. Economic progress of the country depends of connection of education and the labor market. It is necessary to create educated labor force who will satisfy all demands of the labor market. Introducing dual education (connecting studying and application in practice) would connect the universities with various companies which would lead in better competition for companies and development of skills, knowledge and capability for young people.