universities to lead europe out of the crisis challenges ... · financial autonomy – trends...
TRANSCRIPT
Universities to lead Europe out of
the crisis – Challenges and
responses
Helena Nazaré, EUA President
and
Thomas Estermann, Head of Unit
Governance, Autonomy and Funding EUA
Structure
I. A Reminder. Challenges/Why university autonomy?
II. The state of university autonomy in Europe/Greece: data – trends – scorecards
III. Funding: Trends and the impact of the crises
IV. Reform processes
…2…
Educate citizens, train researchers / professionals /
innovators / entrepreneurs, supply the high qualified HR
that Europe needs to boost competitiveness.
Diverse missions in basic and collaborative research
Capacity to foster interdisciplinary research skills and
expertise
Embeddedness in cities and regions as components of
social and economic development
Focal points for dialogue and knowledge exchange with
society
International cooperation building upon institutional
historical and cultural links – strengths and capacities
A Reminder(1)
“The overall level of education… of European citizens
constitute a key determinant for european
competitiveness”
“ What matters for good performance is money and good
governance” (Bruegel policy brief – 200.. ,Aghion et All
2008)
Adequate Funding and appropriate governing
instruments (autonomy) are preconditions.
A Reminder(2)
Elements of autonomy
Institutional autonomy is contingent on the diverse cultural, political, legal and historical backgrounds of Europe’s HE systems
All areas and elements of autonomy are related;
Organisation (Governing Bodies and Selection of Leadership), Financial, Staff (Recruitment, dismissals, salaries) and Academic
The Autonomy Scorecard allows to compare different sytems, (Greece does not score high!)
Organisational autonomy - trends
External members are now included in university governing bodies in a majority of systems, though external authorities often remain involved in their selection.
Universities in nearly all systems are free to create legal entities and decide on academic structures.
Rectors are always chosen by the universities, although external authorities often have to confirm the appointment.
Discussion for GR
External candidates for leadership should be possible
Only internal members in governing bodies – other countries have more flexibility. Lobby.
More flexibility to decide on academic structures
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Organisational autonomy – the scorecard
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Financial autonomy – trends
Universities generally have block grant funding
Surpluses can be kept and money borrowed in a majority of systems, but in practice, various limitations still apply.
Universities in most systems are able to own their buildings, but often require external permission to sell them.
The situation is complex, but universities tend to be more free to set tuition fees for MA and non-EU students.
Discussion for GR
Move from line item budget to block grant
Capacity to keep surplus
Balancing effects of financial crisis
Financial autonomy – the scorecard
…9…
Staffing autonomy - trends
Recruitment procedures are less prescribed than before.
In most systems, restrictions still apply to staff salaries, although these are less likely to be due to the civil servant status of university staff.
Staff dismissals and promotions remain restricted in more than half of the systems studied.
The financial crisis has strongly affected staffing policies.
Discussion for GR
More flexibility to recruit academic and administrative staff
More flexibility to decide on staff salaries
Fade out civil servant status
…10…
Staffing autonomy – the scorecard
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Overall student numbers are limited in nearly all systems.
Universities in Europe still have little freedom in choosing QA mechanisms.
Accreditation is still compulsory for BA/MA programmes in a majority of systems.
The language of instruction can be chosen freely in approx. 2/3 of all systems.
Discussion for GR
More freedom to select students
Language of instruction
Academic autonomy - trends
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Academic autonomy – the scorecard
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How to balance accountability and autonomy?
Appropriate quality assurance procedures
Participation of external members in institutional decision-making
Financial transparency through full costing
Appropriate reporting (only what is used to make decisions)
FUNDING MODELS AND TRENDS
16
Funding Trends: state of play
On average almost 30% of universities’ funding comes from
additional funding sources
73%
9%
6% 3%
5% 4%
Public funding (national and regional)
Student contributions
Funding coming from contracts with business sector
International public funding
Philanthropic funding
Service-related income17
Great diversity of funding models in Europe
18
30%
35%
14%
19%
2%
UK universities
Public funding
student fees
contracts
services &philanthropy
EU research funding
76%
5%
9%
10%
Austrian universities
Public funding
student fees
contracts
other(EU+philanthropy)
Balance between public and private?
No single model, but dependent on economic situation,
socio-economic environment, culture, etc.
Greatest diversity through fees (varies between 35% (UK)
and 0% (Norway) of total university budget. Often
differentiated fees according to cohort, degree level and
course.
Potential of contracts, services, and philantropy
Efficiency is another aspect of a sustainable funding system
19
Shift from public to
additional sources
possible?
Unequal starting
points also due to
economic crisis!
20
www.eua.be/publicfundingobservatory
10 Figures corrected for inflation Raw figures
-50%
-40%
-30%
-20%
-10%
0%
10%
20%
30%
Public funding in 2012 compared with 2008, corrected for inflation
Greek funding situation in comparison
From 2008-2013 : -43 % (Only Latvia cut more)
From 2012/2013 highest cuts in Europe
High inflation in 2008, 2010 and 2011
Outlook?
22
How do other countries deal with it?
Institutions apply cuts themselves
Precondition staffing autonomy and financial autonomy
Impact on cicil servant status
Salary reductions, less holiday, longer working hours, etc.
Incentives to attract other funding sources
Development of differentiated tuiton fees
Efficency measures
Public private partnerships, shared services, etc.
23
Challenges and opportunities
Challenge:
Keep or improve quality
devlop long term vision and reform
investment in future when ressources are scarce
staff development
Opportunities
Restructuring of system
Pressure for reform
Develop benchmark with other countries
Reform processes need to take long term view even if financial pressures are current
24
What can authorities do?
Incentives in public funding to increase private funding
Funding formula
Targeted funding
Performance contracts
Support the development of full costing and financial management in universities
Universities need to have a professional financial management to raise cost awareness
Implement smart funding incentives:
Matched funding schemes including capacity building
Tax incentives for philantropic funding
Other tax incentives for universities
25
What can authorities do - II
Support Leadership development - Key success factor to:
lead change in institution
reinforce strategic approach
implement successful income generation
Human Resource development and professionalisation to develop:
new skills
management capacity
new staff profiles
Support for development of young generation to leadership
26
What can authorities do - III
Support efficiency measures:
Through targeted funding (like Innovation funds UK, IE)
Cooperation through sharing services, equipment, facilities,
ICT
Process improvement (improvement through ICT)
Public private partnerships
Outsourcing and shared services
Public procurement
Data and benchmarking (to drive improvements in efficiency)
27
What can universities do?
1. Integrate income diversification in the overall strategy
2. Identify the strengths & specificities of the university to develop a branding strategy
3. Analyse perspectives for income generation of activities
4. Invest in people, leadership and management
5. Communicate (internally and externally)
6. Change structures and organisation
7. Provide internal incentives
28
Key aspects of implementation
Dialogue among stakeholders
Universities
Relevant public
authorities
Funding bodies/ governl
Other stakeholders
(employers, students, society
at large)
Leadership commitment Coordinated approach
Continuous communication
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Further Information: www.eua.be
Contact: [email protected] 30
AUTUMN 2014
DEFINE project (2012-2015)
Designing strategies for efficient funding of
higher education in Europe
2013: European mapping study
2014: University managers focus groups
Financially
Sustainable Universities series
Current EUA’s activities on funding