Author considers education as an object of governance and therefore as a tremendous branch of the economy, which is producing the very special product, namely social and economic stability and prosperity. There are two main governance approaches to education sector management: a direct command method and an indirect funding mechanism. In this paper we focused on the latter, specifically for the United Kingdom and Canada. We intentionally chose these two countries to illustrate that the administrative-territorial division of a country and delineation of powers are not a barrier, protecting education from management at any level of territorial organization of powers via indirect funding governing tools. Funding mechanism makes education governance more flexible and free of unfunded mandates.