Renewing the Concept of Financing Higher Education in Hungary Ernő Keszei, head of the National Bologna Board in Hungary (vice rector for science and research, Eötvös University)

Article 13 The United Nations INTERNATIONAL COVENANT ON ECONOMIC, SOCIAL AND CULTURAL RIGHTS 1. The States Parties to the present Covenant recognize the right of everyone to education. ….. 2. The States Parties to the present Covenant recognize that, with a view to achieving the full realization of this right: (c) Higher education shall be made equally accessible to all, on the basis of capacity, by every appropriate means, and in particular by the progressive introduction of free education ; Effective of 3 January 1976 parties: 160 (all EHEA countries)

Deputy Secretary of State for Higher Education Secretary of State for Education Ministry of National Recources Educational Government in Hungary

2011: new Act on School Education new Act on Higher Education Educational reforms in Hungary New Higher Education Act: Fine-tuning of the Bologna system Reinforcing teacher training Extra support for science and engineering education New financing system for HEIs and students

Heritage from the system of the Soviet block Short history of higher education Only state universities and colleges HEIs financed based on their previous year budget Development financed according to party decisions Numerus clausus for enrollment ( 7 / 12 % of the cohort) Strong competition of students to enter HEIs Free education (no tuition fee) Progressive payment for housing and food (depending on the income of parents) Scholarship for higher grades – ”penalties” for low grades (called tuition fee)

(Based on the Soviet block heritage) Current system of financing HEIs Public-, church- and private universities and colleges – financed partly by the state partly by their own revenue (mostly grants) State-funding of HEIs (”normative funding”): ~ 35% per capita of students (for education) ~ 29% per capita of students (for student allowances) ~ 18% for scientific quality (formal indicators) ~ 18% for the infrastructure Central role of the state in regulation and funding

(Based on the Soviet block heritage) Current system of financing students Numerus clausus for student enrollment: ”state-funded”: no tuition fee ”fee-paying”: paying part of tuition expenses alien students: paying full tuition expenses Scholarship for ”state funded” students Switching between state funded / fee-paying status for the lower / upper 15 % (average grades) Student quota determined yearly by the state Competition of students to become state-funded, based on secondary school performance (less than before; ~ 30 % of the cohort is enrolled)

Future system of financing HEIs Public and some church universities and colleges – still financed partly by the state Private universities and colleges no more state-financed (except for education ”ordered” by the state) State-funding of HEIs („normative”): ~ 70% task financing, including infrastructure (the state as owner, according to HEI capacities) ~ 15% per capita of students ~ 15% for scientific quality (formal indicators) Extra funding for selected research universities Independent student financing system

Future system of financing students Independent from the financing system of HEIs Student quota determined yearly by the state Numerus clausus for student enrollment: ”state-funded”: no tuition fee ”fee-paying”: paying full tuition expenses ( no difference between fee-paying and alien students) Competition of students to become state-funded, based on secondary school performance Remains basically the same as the current system, but approaching European regulations

Presented: concept of the Ministry of Human Resources by consulting with other ministries This week: discussion of the concept by the Hungarian government Future system of financing HEIs Possible changes are to be expected Probable outcome: more Euro-conform financing system