Funding of Higher Education September 2011, Yerevan1 Performance Based Financing in Higher Education: Slovak Experience Peter Mederly Ministry of Education, Science, Research and Sport, Slovakia

The goal of the presentation to present principles of the funding system used in the Slovak HE since 2002 to present some impacts of the funding system in the Slovak HE environment Funding of Higher Education September 2011, Yerevan 2

3 Overview of the presentation Introduction Priorities of the government´s HE policy and their support by funding system Basic characteristics of the Slovak HE funding system Where we were and where we are – selected indicators Strengths and weaknesses of the funding system What now ?

Funding of Higher Education September 2011, Yerevan 4 Slovak HE in the academic year 2010/ higher education institutions 20 public 3 state (police, military, health) 10 private Number of students total (full-time 66,1%) public HEIs 80,2% (full-time 70,9%) private HEIs 17,7% (full-time 24,6%) state HEIs 2,1% (full time 39,1%) Entry rate 60,9% of 19 years old full time 41,9% under 20 years 36,5%

Funding of Higher Education September 2011, Yerevan 5 History and political background 1999 – 2006: two governments with one HE policy – deep HE reform started in 2000 (Bologna process compatible) New HE Act and funding system introduced in : different government: development in HE partly distorted but principles remained mostly unchanged Since 2010: new government - the original development in HE restored; a review of the system after 10 years of running started

Funding of Higher Education September 2011, Yerevan 6 Priorities of the government´s HE policy set in 2002 and their support by funding system (1) Priorities of HE policyMeasures in the funding system for the priority support Enabling broad access to HE (increasing capacity of HE) Funding based on number of students and graduates Strengthening the system of students’social support More subsidies from State budget to HE system Increasing quality of HEFunding depending on qualification structure of teachers Support of HE research and development Motivation scholarships Support of qualification growth of young teachers Support for using IT, support for advanced laboratories Strengthening the HE research Funding for research dependent on research performance Allocation of funds for projects in competitive way More funds for support of research and development Support of PhD study, support for advanced laboratories

Funding of Higher Education September 2011, Yerevan 7 Priorities of the government´s HE policy set in 2002 and their support by funding system (2) Priorities of HE policyMeasures in the funding system for the priority support Increasing the scope and efficiency of PhD study More funds for new PhD students Inclusion of results of PhD study into criteria for funding (research performance) Support for development of advanced laboratories Support of multisource financing Transformation of HEIs from State budgetary organizations to public HEIs Introduction of tuition fees in case of study exceeding the standard length Inclusion of results in obtaining grants from other sources into criteria for allocation of subsidy

Funding of Higher Education September 2011, Yerevan 8 Reform of financial management of HE in 2002 multisource financing introduced – funding mostly but not completely from the State budget the transfer of unspent subsidies from the State budget to next fiscal year allowed for HEIs subsidies from the State budget in the form of block grant HEIs own property visualization of the true economic state of HEIs by introduction of write-offs and fully accrual accounting allocation of investment funds on central level just for development purposes or bigger reconstructions, not for replacing used-up standard equipment and facilities

Funding of Higher Education September 2011, Yerevan 9 Allocation of funds from the State budget to HEIs Four kinds of subsidies for HEIs from the State budget: subsidy for teaching (depending on teaching performance) subsidy for research (depending on the research performance) subsidy for further development of the HEIs (provided for accepted development projects) subsidy for social support of students (depending on different factors: social scholarships, motivation scholarships, accommodation, meals)

Seminár o hodnotení výskumu, Bratislava, apríl The structure of the HE budget in 2011 teaching261,5 mil. € research 106,0 mil. € development 4,9 mil. € social support. 52,6 mil. € total 425,0 mil. €

Indicators of teaching performance number of students and graduates full time / part time cycle (Bc, MSc, PhD) personal demandingness of the study field – 20 groups – from 4 students/teacher (arts) to 19 students/teacher (law) qualification structure of teachers unemployment rate of graduates volume of foreign grants for teaching, size of mobilities, number of foreign students (used for allocation of small amounts of money) number of publications (proxy for necessary scholarship activities of teachers – research indicator used for allocation of teaching funds – weight 15%) Funding of Higher Education September 2011, Yerevan 11

12 Block grant for teaching and operation Block grant Allocation scheme for funds for teaching

Indicators of research performance Indicators used for „short money“ (evaluated each year) volume of national research grants (during last 2 years) volume of research grants from abroad (during last 2 years) number and quality of publications (during last 2 years) number and quality of artistic outputs (during last 2 years) Indicator used for „long money“ (in use since 2011) complex research performance during 6 years within period evaluated by British RAE-like methodology in Further indicators used till 2010 number of PhD students and graduates research capacity Funding of Higher Education September 2011, Yerevan 13

Example: allocations for publications vs. „normative subsidies“ per student in 2011 Funding of Higher Education September 2011, Yerevan 14 Subsidies for publications : monograph: € textbook, professional book: € publication in currented journal: € publication in other reviewed journal: 36 € € The „normative subsidy“ for one student varies from 540 € (law undergraduate student) to € (graduate veterinary medicine student) from € to € for PhD student in different fields

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Funding of Higher Education September 2011, Yerevan 17 Where we were and where we are – selected indicators Funding of public HEIs from the State budget Students in HEIs New students entering HEIs System of students’ social support Qualification structure of teaching staff PhD students and graduates Salaries of teaching staff Structure of allocation of subsidies R&D funding in public HEIs

Funding of Higher Education September 2011, Yerevan 18 Funding of the public HEIs from the State budget in 2000 and 2011 Item / Year Total subsidies for public HEIs from State budget170 mil. €425 mil. € Subsidies for public HEIs as percent of GDP0,54%0,54%0,61% Number of full-time students in public HEIs Increase in number of full-time students in % 42,3% Increase of total subsidies in current prices in % 150,6% Average subsidy per full-time student in current prices1 923 €3 386 € Increase of total subsidies in prices of 2000 in % 60,4% Average subsidy per full-time student in 2000 prices1 923 €2 168 €

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Funding of Higher Education September 2011, Yerevan 22 Strengths of the HE funding system clear rules and transparency of allocation of subsidies from the State budget motivation of HEIs to increase teaching and research activities specific and focused support for development in selected areas support of access to HE by the system of social scholarships incentives for students by motivation scholarships (10 % of best students a 500 € a year)

Funding of Higher Education September 2011, Yerevan 23 Weaknesses of the funding system systemic weaknesses: lack of direct indicators of teaching quality motivation of HEIs to retain poor students to get subsidy for them missing evidence of real costs of individual study programmes; the evidence is necessary for further tuning of the allocation formulae low sensibility of some research indicators used for funding with regard to research fields non-addressed provision of some kinds of social support (accommodation, meals) there are also some further weaknesses coming from the implementation of the system (e.g. reliability of input data)

Plans for further development the increase of quality is the main goal for further development in the Slovak HE for funding system it means to make further tuning we are analyzing possible ways; in any case we need: to decrease motivation of HEIs for retaining students with poor performance to make the research performance indicators more sensitive with regard to the research fields to develop a system for the calculation of full-costs of HE activities (the implementation of British TRAC-like system is running) to improve the overall implementation of the system Funding of Higher Education September 2011, Yerevan 24

Thank you for your attention Funding of Higher Education September 2011, Yerevan 25