Dinky, that's the way we do it. The kids have their supplies at the beginning of the year and it has to last the whole year. Because I have such a young grade, all of the coloured pencils, led pencils, glue sticks etc. are just put in tubs in the middle of their tables and they all share. I have almost run out of glue and the led pencils are depleting at the children use them up like crazy! There just weren't enough ordered!
Whatever is left over (and I doubt any will be left over) stay in the classroom for the next year. Eventually each classroom builds up a bit of a supply (though always limited of course). I have a new classroom so there isn't much of anything in back-up supplies.
I don't think the schools do it maliciously. I think they just try to use it to the best advantage and try to spread the supplies out as far as they will possibly go. There are limited funds and state schools are very reluctant to charge even more in fees for more supplies. They are already aware that fees are hard enough to pay as it is.
The grade next door to me have their own pencil cases as the teacher prefers the kids to have their own things and be responsible for their own things. That's her preference and I would probably do it that way if I had older children (I just find that the children that "lose" things alllll the time benefit from the sharing because then they are not always missing out iykwim?).


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