REPUBLIKA SLOVENIJA

MINISTRSTVO ZA VISOKO ŠOLSTVO, ZNANOST IN

TEHNOLOGIJO

Beyond the Crisis: Funding Research

Universities in Economic Recession

Efficient Public Spending in

the Case of Financing of
Higher Education in Slovenia
Duša Marjetič
MHEST, Directorate for Higher Education

Zagreb, 3. 12. 2010

REPUBLIKA SLOVENIJA
MINISTRSTVO ZA VISOKO ŠOLSTVO, ZNANOST IN
TEHNOLOGIJO

HEIs mission
To respond to the needs of society by:
• Creating and maintaining an advanced base of
knowledge
• Encourage research and inovation
• Transfere knowledge to students preparing them for
a working career and active citizenship in democratic
society and encouraging their personal growth
• “Service to society”

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 REPUBLIKA SLOVENIJA
MINISTRSTVO ZA VISOKO ŠOLSTVO, ZNANOST IN
TEHNOLOGIJO

Financing of HE in Slovenia

HEIs Student support

health insurance, subsidised nutrition, subsidised
Teaching Research
rent in student dormitories, travel subsidies,
scholarships

Slovenian Human Other

Slovenian Research
Resource (SUO
Agency
Development and SWC
Scholarship Fund …)

Other MoHEST MoLFSA

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 Public funding HE
REPUBLIKA SLOVENIJA
MINISTRSTVO ZA VISOKO ŠOLSTVO, ZNANOST IN
TEHNOLOGIJO

• Students are considered to be financially dependent on their

parents.
• Dual track system. No tuition fee for full-time students.
• Full-time students and part-time students, who are not employed
or registered as unemployed also benefit from health insurance,
subsidised nutrition, subsidised rent in student dormitories
and travel subsidies.
• Indirectly additional benefits are guaranteed for parents and
students through tax benefits and tax relief on student’ work.
• Scholarships: materially deprived students (54%), talented and
gifted students (30%), company scholarships (12%).
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REPUBLIKA SLOVENIJA
MINISTRSTVO ZA VISOKO ŠOLSTVO, ZNANOST IN
TEHNOLOGIJO

GDP % for tertiary education (2007)

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 REPUBLIKA SLOVENIJA
MINISTRSTVO ZA VISOKO ŠOLSTVO, ZNANOST IN
TEHNOLOGIJO

% od public expenditure for TE student aid (2007)

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 REPUBLIKA SLOVENIJA
MINISTRSTVO ZA VISOKO ŠOLSTVO, ZNANOST IN
TEHNOLOGIJO

Public expenditure for TEIs in EUR PPS per student

(2007)

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REPUBLIKA SLOVENIJA
MINISTRSTVO ZA VISOKO ŠOLSTVO, ZNANOST IN
TEHNOLOGIJO

Brief history of lump-sum funding

in Slovenia

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 Why change of
HE funding?
REPUBLIKA SLOVENIJA
MINISTRSTVO ZA VISOKO ŠOLSTVO, ZNANOST IN
TEHNOLOGIJO

Weaknesses of the previous system (up to 2003):

• The way funds were distributed to HEIs.
• Funds were not (always) spent rationally.
• Governmental controls were focused on the way
money was spent and not on the realization of
goals and quality assurance in HE.
• Slow responsiveness of HEIs to changes
(example: demographic, HRM policy, labor market
needs, etc.).

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 Desired qualities
REPUBLIKA SLOVENIJA
MINISTRSTVO ZA VISOKO ŠOLSTVO, ZNANOST IN
TEHNOLOGIJO

Desirable qualities of the new funding model were:

• Flexibility: it should recognise differences between HEIs and allow
their flexibility to maximise autonomy (academic and financial) so that
they can achieve their mission.
• Choice: HEIs should not be limited in offering a selection of study
programmes.
• Quality: funding should reward and promote excellence of results in
education.
• Simplicity/efficiency: it should be simple for governing by the state
and comprehensible for HEIs and students. It should assure the best
results for invested funds.
• Predictability: it should enable planning with a certain level of
predictability both, for the state and HEIs.
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 Formula
REPUBLIKA SLOVENIJA
MINISTRSTVO ZA VISOKO ŠOLSTVO, ZNANOST IN
TEHNOLOGIJO

LS = OLS + NLS : (Annual Funds = Fixed AF + Normative AF)

LS (AF)
- OLS (FAF)
= NLS (NAF)

LIV = (LS – Σ OLS) / Σ ((Š + D * Ud ) * f(s))

The annual initial value (LIV) represents the standard annual funds per student in the
first study group and is calculated as the quotient of the difference of annual budget funds
(LS) and the basic annual funds of all HEIs ( OLS) and the total number of students (Š)
and the number of graduates (D) multiplied by the weighting (Ud) and the factor f(s) of
the study group to which the HEIs.
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 Public funding of HEIs for
teaching (in mio EUR)
REPUBLIKA SLOVENIJA
MINISTRSTVO ZA VISOKO ŠOLSTVO, ZNANOST IN
TEHNOLOGIJO

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 REPUBLIKA SLOVENIJA
MINISTRSTVO ZA VISOKO ŠOLSTVO, ZNANOST IN
TEHNOLOGIJO
Inconvenient truth
• The introduction of a lump sum will solve the budget problems.

• Lump sum funding leads to rationalization and better use of

resources at HEIs level by making them more accountable for
their actions and at the same time give them more flexibility on
how they manage and distribute the money.

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Mechanisms promoting
good governance
MINISTRSTVO ZA PRIMER

• Accreditation • Annual work programme

(unified form set by the ministry)
• National register of HEIs
• Annual report
• Evaluation
• Administrative board
• Matura (ticket to HE)
• Concessions are given to
• Public tender for enrolment
private HEIs based on
places (for public institutions
public tender by the
with Government's consent)
Government (for a fix period
• National enrolment office (for
of time with restrictions)
all publicly financed
undergraduate studies) • Involvement of HEIs in EU
financed projects

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 REPUBLIKA SLOVENIJA
Mechanisms promoting
good governance
MINISTRSTVO ZA PRIMER

• Obligatory annual internal audit for public institutions

• Budget Supervision Office of the Ministry of Finance
– Risk management – documented risk assessment
• Court of auditors of the Republic of Slovenia
(independent by the Constitution and law)
• Labour Inspectorate of the Republic of Slovenia
• Anti-corruption commission
• Examples of good practice

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 Strengths/weaknesses
REPUBLIKA SLOVENIJA
MINISTRSTVO ZA VISOKO ŠOLSTVO, ZNANOST IN
TEHNOLOGIJO

Strengths:
• Autonomy of universities
• Financial autonomy of universities
• HRM (policies) of universities

Weaknesses:
• Decentralised universities
• Inefficiency in spending of (public) funds
• Low effectiveness of HE: drop out, long duration
of study, ?unemployment?
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 Challenges
REPUBLIKA SLOVENIJA
MINISTRSTVO ZA VISOKO ŠOLSTVO, ZNANOST IN
TEHNOLOGIJO

• Limited resources in national budget

– Efficiency in spending of resources
• Equity
– “Free” higher education
– Full time / part time studies
• Accountability (vs. autonomy)
– Professional management at universities
– Transparent management
– Responsiveness and reporting to society
• Quality

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REPUBLIKA SLOVENIJA
MINISTRSTVO ZA VISOKO ŠOLSTVO, ZNANOST IN
TEHNOLOGIJO

Master plan for HE 2020

• Increase of total funds available to HE and scientific and
research work.
• By means of multi-annual financing mechanisms that will
reward successful HEIs to create a system of financing with a
basic and a developmental pillar.
• Ensure stability of financing of scientific and research activities
of universities through the introduction of comprehensive
financing of research (i.e. research “lump-sum”).

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