Liudmyla Yurchyshena
https://orcid.org/0000-0002-5904-0758
HIGHER EDUCATION FUNDING MODEL: CONCEPTS
AND PRACTICAL RESULTS OF IMPLEMENTATION IN UKRAINE
Full text (pdf)
Language: Ukrainian
Abstract. The problem of financing higher education is becoming increasingly important in both domestic and international practice. Changing approaches to financing models and simultaneous reduction of public funding depends on several factors, mainly due to the transformation process related to the changes in technology, the wave of innovations, the effects of the Covid-19 pandemic, financial and economic crises causing the review of the role and priorities of the institution of the state, public finance potential on the financing of higher education. The aim of the article is to study theoretical approaches to understanding the concept of the «financing model», assess the results of the introduction of the formula for the allocation of the state budget expenditures between higher education institutions of Ukraine to identify the most impactful components of the model and trends. In the process of our research, we used such methods as: analysis, synthesis, comparison, system analysis, statistical methods (regressions, means, grouping, data distribution), data visualization method and others. Based on a synthesis of approaches of foreign and domestic scholars to the concept of «the funding model», the author proposes to consider it at two levels: macro (public funding, which is a tool for allocating budget funds between the state and higher education institutions under pre-defined conditions, agreements, parameters, indicators) and micro (formed at the level of a separate university, and includes budget and additional funding in certain proportions). The article examines the macro approach to the results of the introduction of the funding formula in 2020–2021, assesses the level of funding for the HEIs, determines the interdependence of the integrated performance indicator and the estimated student body of the HEIs, assesses the strength of relationship, distribution criteria and obtained values (estimated body, scale of activity, regional support, scientific activity, international recognition, employment of graduates). The positive effects of the introduction of the formula model of financing are the implementation of the state educational policy, strategic positioning of universities, the introduction of innovative approaches to management, conducting educational and scientific activities, improving quality indicators. The disadvantage is the dependence on student body studying at the request of the state, limited resources (material, human, financial, etc.) to achieve efficiency (as a result – underfunding), so powerful, innovative universities able to respond to stakeholder requests, produce quality services and effectively promote them in the market of educational services have advantages.
Keywords: financing model, formula financing, financing of higher education, financing of universities, complex activity indicator.
https://doi.org/10.32987/2617-8532-2021-3-17-32
Keywords: financing model, formula financing, financing of higher education, financing of universities, complex activity indicator.
https://doi.org/10.32987/2617-8532-2021-3-17-32
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4. Kovalenko, Yu. M., & Vitrenko L. O. (2020). Financing of higher education institutions in Ukraine. Irpin: Universytet DFS Ukrainy [in Ukrainian].
5. Mhamed, A. A. S., Kaca, R., Sagintaeva, A. K., & Vossenshtejn, G. (2018). Sustainability of universities in relation to the model of financing the higher education system in the Republic of Kazakhstan in the conditions of transition period. Nur-Sultan: Nazarbayev University Graduate School of Education. Retrieved from https://gse.nu.edu.kz/wp-content/uploads/2019/06/Monografiya.pdf [in Russian].
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7. Ziderman, A. (2017). Financing Universities Through Vouchers: Lessons from the Republic of Georgia. Higher Education Policy, 30, 161–184. Retrieved from https://doi.org/10.1057/s41307-016-0008-6.
8. Popovych, L. O. (2018). Financing mechanism of higher education institutions: general principles. The Scientific Heritage, 2(24), 13–17 [in Ukrainian].
9. Stadnyi, Ye. (2016). Conceptual model of state funding of universities based on performance. Retrieved from https://cedos.org.ua/researches/kontseptualna-model-derzhavnoho-finansuvannia-vnz-za-rezultatamy-diialnosti/ [in Ukrainian].
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11. Lepori, B. (2007). Funding models of Universities of Applied Sciences. Retrieved from https://www.swissuniversities.ch/fileadmin/swissuniversities/Dokumente/Kammern/Kammer_FH/Publikationen/UAS_funding.pdf.
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13. Jongbloed, B., Teixeira, P., Dill, D., & Amaral, A. (Eds.). Regulation and Competition in Higher Education. Markets in Higher Education. Rhetoric or Reality, 87-111. Dordrecht: Kluwer Academic Publishers.
14. Arnhold, N., Kivistö, J. , Püttmann, V., Vossensteyn, H., & Ziegele, F. (2018). World Bank Support to Higher Education in Latvia. Volume 2: Internal Funding and Governance. Retrieved from https://openknowledge.worldbank.org/handle/10986/29739.
15. Jongbloed, B. (2010). Funding Higher Education: A View across Europe : Report for the Modern Project: European Platform Higher Education Modernisation. Brussels: ESMU. Retrieved from https://www.utwente.nl/bms/cheps/publications/Publications%202010/MODERN_Funding_Report.pdf.
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17. Verkhovna Rada of Ukraine. (2017). About education (Act No. 2145-VIII, September 5). Retrieved from https://zakon.rada.gov.ua/laws/show/2145-19#Text [in Ukrainian].
18. Verkhovna Rada of Ukraine. (2017). About higher education (Act No. 1556-VII, September 28). Retrieved from https://zakon.rada.gov.ua/laws/show/1556-18#Text [in Ukrainian].
19. Cabinet of Ministers of Ukraine. (2010). About the statement of the list of paid services which can be rendered by educational institutions, other establishments and establishments of system of education belonging to the state and municipal form of ownership (Decree No. 796, August 27). Retrieved from https://zakon.rada.gov.ua/laws/show/796-2010-%D0%BF#Text [in Ukrainian].
20. Cabinet of Ministers of Ukraine. (2019). The formula for the distribution of state budget expenditures on higher education between higher education institutions (Decree No. 1146, December 24). Retrieved from https://www.kmu.gov.ua/npas/pro-rozpodil-vidatkiv-derzhavnogo-byudzhetu-mizh-zakladami-vishchoyi-osviti-na-osnovi-pokaznikiv-yih-osvitnoyi-naukovoyi-ta-mizhnarodnoyi-diyalnosti-1146-241219 [in Ukrainian].
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22. State Statistics Service of Ukraine. (n. d.). Retrieved from http://www.ukrstat.gov.ua/ [in Ukrainian].
23. Cabinet of Ministers of Ukraine. (2020). The procedure for forming the minimum tuition fee for higher education on the basis of indicative cost (Decree No. 191, March 3). Retrieved from https://zakon.rada.gov.ua/laws/show/191-2020-%D0%BF#Text [in Ukrainian].