Reconsideration of financing higher education institutions at international and national level

Abstract

In recent years, the methods of financing higher education institutions around the world have undergone substantial changes. University autonomy requires a rational management of university funds, but especially of public funds. New approaches to budget financing are discussed both in academia and in various publications. Research shows that a wide and diverse range of models is used in European countries to finance higher education institutions. Research shows that budget-financing systems are becoming increasingly complex and demanding. The practice of funding higher education institutions is performed based on a formula that is calculated on indicators regarding the number of effective students, equivalent students, the number of employment, indicators of academic and research performance or strategic university objectives. Even if block grants based on formulas are the main way of budgetary financing, but also negotiated financing also remains an important financing mechanism. The implementation of a formula for calculating the financing of HEIs in the Republic of Moldova brings an increased interest in being acquainted with the financing practices of other states. In this way, it is possible to notice the differences and similarities of approach of the different education financing systems, as well as to identify possible examples of good practice in overcoming common challenges.

Keywords

• university funding
• budget funding
• funding formula
• block grant