1. Financing, resources diversification, private funds
Daniel Münich
(CERGE-EI, MŠMT)

2. TRENDS ~1995 – 1999 ~2000 – 2006 Slow growth of funding
Fast growth of funding
Growth of enrolment
Rapid growth of enrollment
Real per student funds fell 26%
Growing real funding per student
Spending per student still bellow 1995 CR levels and bellow OECD average
Lack of private funding
..and efficiency of spending?

3. STRENGHTS &CHALENGES Strengths Challenges Normative funding formula
Lack of transparency
(should be costs not actual costs)
Little emphasis on soc-econ needs
Growing real funding per student
Weight put also on graduation rate
Effective control of budgets
and allocations within institutions
Development programs (competitive)
Over-reliance on public funding
Small share of private providers

4. OVER-RELIANCE ON PUBLIC FUNDING
Private funding from:
Students (domestic, EU, non-EU)
Firms (R&D, innovations, students)
Other
Consequences
Constraint of faster growth of the system
Inefficient behavior of students and schools (incentives)
…introduce fees and attract private sector

5. FRAMEWORKS FOR PRIVATE FEES/TUITION (1)
Student loan system, need-based scholarships
Differential fees by level of studies
BA, MA, foreign students: pros & cons, Irish experience?
Encourage growth of private tertiary sector
make students eligible for public loans/scholarships
real estate endowment (?)

6. FRAMEWORKS FOR PRIVATE FEES/TUITION (2)
Dual fee system
Charge more market based programs, non-EU students.
Higher tuition subsidies (public) to priority fields
Parallel fees structures – not recommended
Attract support from industries (students and R&D)

7. REFORM OF FINANCING Current funding mechanism
streamlined and transparent
according to normative (current) costs) (?)
according to labor market needs (?)
more responsive to soc-econ needs (?)
consolidate graduate-base component
who will decide?
is there a space left for customer’s preferences and competitive forces?
Greater governance power to management
priorities setting (feedback?)
allocation of funds

8. INCENTIVES, INFORMATION, COMPETION
Government
Rules, goals, incentives setting
Information flows
Schools
Students
Firms
Can we afford relying on smart central planning?
Is there a space for disciplining competitive forces?