Funding in Norway - aic.lv · 3 Norwegian Ministry of Education and Research This is Norway • 4,7...

Funding Higher Educations Institutions in Norway

Presentation by Knut SlettaLatvia, 13. November 2007

2 Norwegian Ministry of Education and Research

General overview Principles of governance Funding system Experience and challenges

The Norwegian funding model in higher education


This is Norway

4,7 mill inhabitants Total land area of 386 958 km2

sparsely populated GDP per capita 462 000 NOK

2nd in OECD Oil driven economy

surplus national budget Membership of EU: No

but member of EEA 1 Jan. 1994 Capital: Oslo


The Norwegian Higher education institutions

One unified system and one act 7 universities 5 specialised universities 24 University colleges 2 national colleges of art

About 25 private colleges Mostly small, but one very large:

National School of Management (9000 full-time and 9000 part-time students)


Organization and overall funding of higher education

The total number of students is 224 200 More than one out of four 19-24 year olds are

now enrolled in higher education Women now comprise the majority (almost 60

per cent) of the graduates Tax based systems Public owned higher education institutions No tuition fees in public owned institutions State subsidies/ grants for students


Funding system introduced in 2002

Both a simplification and an extension of the economic responsibility of higher education: simplification because the states control more

resembles overall control of framework an extension because they activate a larger

element of local financial autonomy and responsibility

Control by the authorities is restricted to the control of frameworks by means of contracts in order to ensure attention to national targets plus some restrictions concerning investment in

capital goods, such as e.g. buildings


Principle

Simple easy to understand avoid unclear and crossing incentives few and general indicators

Foreseeable and predictable stable indicators and weights transparent and open

Institutional level Neutral

no geographic, institutional or other preferences


Components

Basic component about 55 per cent of university budgets, 69 for

university colleges

Education component about 21 per cent of the total allocation for

university, 28 per cent for university colleges

Research component result based redistribution: about 10 per cent of

university budgets, 1-2 for university colleges strategic part: about 14 per cent of university

budgets, about 2 for university colleges


Basic:11 865 mill NOK; 60 %

Education4 870 mill

NOK; 25 %

Research2 955 mill

NOK; 15 %

Overall figures 2007

(384 mill euro)

(1541 mill euro)(632 mill euro)


Basis component

Average 60% of the total funding A residual after the education and the

research component is calculated Stable subsidy based on historical experience,

local differences and special tasks The national targets of activity is evaluated

annually


Education component

Average 25% of the funding Incentive-based component Open budget frame A close link between actual production and

unit cost funding Resources are allocated according to number

of credit points taken and number of students on international exchange programs

Make the Ministrys budgetary process more predictable for the institutions and improve their capacity for planning and rational operations


Education component

Each study is placed in one of six categories according to how expensive they are. 60 credit points (one years study) gives (in NOK): group A: 114 000 group B: 87 000 group C: 58 000 group D: 42 000 group E: 36 000 group F: 29 000 each exchange student generates 6000 NOK

Covers 40% of the costs


Education component

The national target of activity is evaluated annually

If the number of credits obtained by an institution within higher education exceed the national target set by authority, the financial subsidy is increased on the margin

Correspondingly the financial subsidy is reduced on the margin if the number of credits are less than the national target

Alteration in the result component is based on the results two years ago


Research component

Average 15% of the funding Two parts; strategic and redistribution Strategic resources for Ph.D.s, scientific

equipment etc. Redistribution between institutions based on

indicators (weights): scientific publications (0,3) Ph.D. candidates (0,3) allocations from EUs Framework Programs (0,2) allocations from Norwegian Research Council

(0,2)

Closed budget frame


Research component -Scientific production

Local, national and international level Defined by the origin of the authors Publication types

complete book article in ISSN-title article in ISBN-title

Weighting of publication types Level 1 and 2


The 3 main components

Long term perspective and stability

Special cost structure and historical funding

Criteria based upon R&D (Funding from EU, NRC, PhD-candidates and publications)

Number of ECST-pointsNumber of exchange student

Basic component Education component

Strategic component

Redistribution component

Quality and activity in research

Quality and efficiency in education


Some experiences

Strong incentives, the institutions has adapted Focus on research and results. There is a

discussion if the focus has gone from quality to quantity.

General acceptance of the principles in the model

Pressure to include new indicators Debate of publishing indicator


Some challenges

Difficult to measure quality: Focus on quality or quantity?

The need of reliable data Some frustration with the online

documentation system Some researchers claim there is to much

focus on accountable indicators The internal design of incentives in institutions

need to behave as autonomous bodies


Funding of Higher education in the other Nordic countries - Sweden

Education Payment based on the number of students Payment based on student results There is a ceiling for the payment

Reasearch Payment based on historic and political

decisions No objective criteria or result based criteria Funding based on fields where they offer

PhD


Funding of Higher education in the other Nordic countries - Finland

Base component Formula based that includes unit costs and

results Historic stable

Project component Strategic tool

Result based component Includes result based indicators in quality

and efficiency in research


Funding of Higher education in the other Nordic countries - Denmark

Education Payment per student based on different

cost categories and results

Reasearch Payment based on history and tradition


Sweden and Denmark

Education Reimbursement per student year An activity part based on degree of

performance (credit points) Research

Basic grants and external funding

1 2 3 4 5 6 Subjects Reimbursement

per student-year

Activity based part per student year

Degree of performance (aggregate)

Payment for performance (5=3*4)

Total payment (6=2+5)

Humanoria 17 217 16 958 0,78 13 227 30 444 Nature Science

43 431 37 421 0,80 29 937 73 368

Health care 48 241 41 783 0,93 38 858 87 099 Medicine 53 908 65 572 0,93 60 982 114 890


Principles of governance

Autonomy and delegation Relatively seldom are issues brought before

the Ministry Framework regulation Incentive-driven Non-intervention

Many decisions can be appealed to the Ministry needs to remain uncommitted


Public Higher Education Institutions

Private Higher Education Institutions

Research Council of Norway

European Commission

Ministry of Education and Research (Gov. budget)

State Education Loan Fund

Population

(X-)Students

Taxes

Tuiton fees

Loan/ Grant

Repayment

Resultat based funding

Resultat based fundingAppl. transfers

Global fundingFin. flow chart

Funding in Norway - aic.lv · 3 Norwegian Ministry of Education and Research This is Norway • 4,7...

Documents

Transcript of Funding in Norway - aic.lv · 3 Norwegian Ministry of Education and Research This is Norway • 4,7...