Funding In Norway 090608[1]


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  • Funding In Norway 090608[1]

    1. 1. Funding Higher Education Institutions in Norway Presentation by Jan Roth Johnsen Student delegation from the University of Oslo 9. July 2008
    2. 2. <ul><li>General overview </li></ul><ul><li>Principles of governance </li></ul><ul><li>Funding system </li></ul><ul><li>Experience and challenges </li></ul>The Norwegian funding model in higher education
    3. 3. This is Norway <ul><li>4,7 mill inhabitants </li></ul><ul><li>Total land area of 386 958 km2 </li></ul><ul><ul><li>sparsely populated </li></ul></ul><ul><li>GDP per capita 462 000 NOK </li></ul><ul><ul><li>2nd in OECD </li></ul></ul><ul><li>Oil driven economy </li></ul><ul><ul><li>surplus national budget </li></ul></ul><ul><li>Membership of EU: No </li></ul><ul><ul><li>but member of EEA 1 Jan. 1994 </li></ul></ul><ul><li>Capital: Oslo </li></ul>
    4. 4. The Norwegian Higher education institutions <ul><li>One unified system and one act </li></ul><ul><li>7 universities </li></ul><ul><li>7 specialised universities </li></ul><ul><li>24 University colleges </li></ul><ul><li>2 national colleges of art </li></ul><ul><li>About 25 private colleges </li></ul><ul><ul><li>Mostly small, but one very large: </li></ul></ul><ul><ul><ul><li>National School of Management (9000 full-time and 9000 part-time students) </li></ul></ul></ul>
    5. 5. Organization and overall funding of higher education <ul><li>The total number of students is 224 200 </li></ul><ul><li>31% of 19-24 year olds are now enrolled in higher education </li></ul><ul><li>Women now comprise the majority (almost 60 per cent) of the graduates </li></ul><ul><li>Tax based systems </li></ul><ul><li>Public owned higher education institutions </li></ul><ul><li>No tuition fees in public owned institutions </li></ul><ul><li>State subsidies/ grants for students </li></ul>
    6. 6. Funding system introduced in 2002 <ul><li>Both a simplification and an extension of the economic responsibility of higher education: </li></ul><ul><ul><li>simplification because the state’s control more resembles overall control of framework </li></ul></ul><ul><ul><li>an extension because they activate a larger element of local financial autonomy and responsibility </li></ul></ul><ul><li>Control by the authorities is restricted to the control of frameworks by means of contracts in order to ensure attention to national targets </li></ul><ul><ul><li>plus some restrictions concerning investment in capital goods, such as e.g. buildings </li></ul></ul>
    7. 7. Principle <ul><li>Simple – easy to understand </li></ul><ul><ul><li>avoid unclear and crossing incentives </li></ul></ul><ul><ul><li>few and general indicators </li></ul></ul><ul><li>Foreseeable and predictable </li></ul><ul><ul><li>stable indicators and weights </li></ul></ul><ul><ul><li>transparent and open </li></ul></ul><ul><li>Institutional level </li></ul><ul><li>Neutral </li></ul><ul><ul><li>no geographic, institutional or other preferences </li></ul></ul>
    8. 8. Components <ul><li>Basic component (60%) </li></ul><ul><ul><li>about 55% of university budgets, 69 for university colleges </li></ul></ul><ul><li>Education component (25%) </li></ul><ul><ul><li>about 21% of the total allocation for university, 28% for university colleges </li></ul></ul><ul><li>Research component (15%) </li></ul><ul><ul><li>result based redistribution: about 10% of university budgets, 1-2 for university colleges </li></ul></ul><ul><ul><li>strategic part: about 14% of university budgets, about 2 for university colleges </li></ul></ul>
    9. 9. Overall figures 2008
    10. 10. Basis component <ul><li>Average 60% of the total funding </li></ul><ul><li>A residual after the education and the research component is calculated </li></ul><ul><li>Stable subsidy based on historical experience, local differences and special tasks </li></ul><ul><li>The national targets of activity is evaluated annually </li></ul>
    11. 11. Education component <ul><li>Average 25% of the funding </li></ul><ul><li>Incentive-based component </li></ul><ul><li>Open budget frame </li></ul><ul><li>A close link between actual production and unit cost funding </li></ul><ul><li>Resources are allocated according to number of credit points taken and number of students on international exchange programs </li></ul><ul><li>Make the Ministry’s budgetary process more predictable for the institutions and improve their capacity for planning and rational operations </li></ul>
    12. 12. Education component <ul><li>Each study is placed in one of six categories according to how expensive they are. 60 credit points (one years study) gives (in NOK): </li></ul><ul><ul><li>group A: 114 000 </li></ul></ul><ul><ul><li>group B: 87 000 </li></ul></ul><ul><ul><li>group C: 58 000 </li></ul></ul><ul><ul><li>group D: 42 000 </li></ul></ul><ul><ul><li>group E: 36 000 </li></ul></ul><ul><ul><li>group F: 29 000 </li></ul></ul><ul><ul><li>each exchange student generates 6000 NOK </li></ul></ul><ul><li>Covers 40% of the costs </li></ul>
    13. 13. Education component <ul><li>The national target of activity is evaluated annually </li></ul><ul><li>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 </li></ul><ul><li>Correspondingly the financial subsidy is reduced on the margin if the number of credits are less than the national target </li></ul><ul><li>Alteration in the result component is based on the results two years ago </li></ul>
    14. 14. Research component <ul><li>Average 15% of the funding </li></ul><ul><li>Two parts; strategic and redistribution </li></ul><ul><li>Strategic – resources for Ph.D.’s, scientific equipment etc. </li></ul><ul><li>Redistribution between institutions based on indicators (weights): </li></ul><ul><ul><li>scientific publications (0,3) </li></ul></ul><ul><ul><li>Ph.D. candidates (0,3) </li></ul></ul><ul><ul><li>allocations from EU’s Framework Programs (0,2) </li></ul></ul><ul><ul><li>allocations from Norwegian Research Council (0,2) </li></ul></ul><ul><li>Closed budget frame </li></ul>
    15. 15. Research component -Scientific production <ul><li>Local, national and international level </li></ul><ul><li>Defined by the origin of the authors </li></ul><ul><li>Publication types </li></ul><ul><ul><li>complete book </li></ul></ul><ul><ul><li>article in ISSN-title </li></ul></ul><ul><ul><li>article in ISBN-title </li></ul></ul><ul><li>Weighting of publication types </li></ul><ul><ul><li>Level 1 and 2 </li></ul></ul>
    16. 16. 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-points Number of exchange student Basic component Education component Strategic component Redistribution component Quality and activity in research Quality and efficiency in education
    17. 17. Some experiences <ul><li>Strong incentives </li></ul><ul><li>Increased number of ECTS-credits </li></ul><ul><li>Focus on research and results. There is a discussion if the focus has gone from quality to quantity </li></ul><ul><li>General acceptance of the principles in the model </li></ul><ul><li>Pressure to include new indicators </li></ul><ul><li>Debate of publishing indicator </li></ul>
    18. 18. Some challenges <ul><li>Reliable data </li></ul><ul><li>Some frustration with the online documentation system </li></ul><ul><li>Some researchers claim there is too much focus on accountable indicators </li></ul><ul><li>The internal design of incentives in institutions – need to behave as autonomous bodies </li></ul>
    19. 19. Fin. flow chart 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 funding Appl. transfers Global funding