Funding Systems and their Effects on Higher Education Systems

This international OECD/IMHE study deals with the issue of the effects of funding systems on higher education systems. The Austrian study refers to the public university system. At this point in time the implementation of the overall Austrian university reform is under way and experiences with and information on the new funding system vary to a high degree. The study results are based on a set of 70 personal interviews of representatives of all institutions being affiliated with the university system (defined as “stakeholders ” in this study) and responses of 380 so called “Academic Directors ” (heads of scientific university units: faculties, departments, institutes) who completed online questionnaires. A summary of their views and opinions shows the following key results: � The basic concept of the funding system is mainly positive.- The three year global budget is very positive and results in positive effects.- Performance agreements as steering instruments, in principle, are positive. However, there is scepticism concerning the future concrete design and management of this instrument.- The formula based budget is assessed in widely differing ways, from being “very positive” to “very negative”.- The feasibility of measurement, assessment and control of university core tasks in general or for specific core tasks are very difficult challenges.- There are too many instruments of accountability and reporting which result in increased work loads for universities (main instruments are: private sector book keeping, performance reports, financial reports, intellectual capital statements). The instruments are assessed in very differentiated ways ranging from “very positive ” to “very negative”.- The allocation of state funds for specific tasks (in addition to the basic state budget) via peer reviews is an appropriate concept to foster these activities. � Austrian universities are funded to a high degree (> 90 %) by Federal Government.- There is a demand for an increase of state general funds (General budget – negotiated in the performance agreements, 80 % of the total budget, and the formula – based portion,