Financial autonomy and accountability of the Public Higher Education Institutions: Lessons learned from the FAITH project Prof. Ass. Dr. But Dedaj Dean of the Faculty of Economics of the University of Prishtina

Main principles There are general interdependencies between government policy and strategic goals and the HE funding system The specialized universities in particular need the flexibility as well as the ability to respond quickly to changing market conditions Republic of Kosovo in its current economic situation requires academically and practically trained professionals to carry new application-oriented knowledge into the local economy

FAITH - White Paper A new or adapted financing model has to be made in stages Need for development of a comprehensive national strategy for a Kosovarian Higher Education Area Funding of TEACHING” - Per capita funding models based on output-oriented indicators

Across Europe large variety of financing the HE An overwhelming majority of countries make use of formula funding A growing importance of output measures in the funding formulas An increase in the use of project funds to increase competition for (research) funding and to meet specific national goals (targeted funding) An increase in the use of contracts agreed between ministries and individual HEIs, where part of the HEI’s budget is tied to a performance agreement or performance contract

The following aspects should be considered: In situation when the budgets cannot be increased and continue to be scarce, the implementation of a per capita funding model - maybe new admission rules The definition of study places and the definition of upper limits are not in line with the current free access to universities in Kosova. A definition of precise study place capacities has to be determined within the performance agreements, which in turn must be clearly defined All funds should be allocated by the Ministry of Education, Science and Technology based on a specific formula based on a unit price per student & performance-based

Financing public Higher Education System – Lessons Learned An adequate model has to be drawn up for Kosova, which appears to achieve the national targets most helpful “Funding of TEACHING” - Per capita funding models based on output-oriented indicators Transparency and objectivity very important principles An output-oriented model Profilisation of the public HEIs

Financing public Higher Education System – Lessons Learned Budget allocations should be made according to the cost of the study fields University Place Management The first step for implementing a system for managing study places would be the determination of the student capacities that Kosovan HEIs are able to provide with the given human resources (teaching staff) unit price per student* x Number of students * unit price per student depends on the equipment required. The cost of the study places can be distinguished according to seven groups of subjects:

Unit price per student – 7 categories

Performance-based funding model Number of degrees awarded by the University (Average of past two years) Number of students who have gained more than x study credits Number of employed graduates Drop Out Rate

Other possible indicators defined by EUA, 2013 Number of BA students, No. of MA students, Doctoral degrees Amount of EU/international funding, Amount of external funding, Research evaluations, Number of ECTS Number of staff, Research contracts, International students, Doctoral theses, Scientific activities, Successful patent applications, Diversity indicators, International staff, Graduate employment rate, Floor space, Community outreach, Patent applications, National rankings.

Thank you but.dedaj@uni-pr.edu