| Abstract [eng] |
The division of power and accountability enters the system of Higher Education: higher education funding system is moving from Burocratical funding model to Collegial and Market funding models by changing the principles of higher education funding - the transition from a strong state control to balance of interests between the state, higher education institutions and society. Now market principles prevail in higher education system that encourage competition, the involvement of private entities and opportunities of choice for students. The state is still the major financier of higher education study. The state provides funding in order to cover the expenditure for basic categories of higher education institutions - this is study, administrative and current costs of higher education. Attracting private funding sources remains a serious problem. Comparing the growth of public and private funding, it is visible that private funding for higher education is more rapid. The results have shown that the private sector is able to adapt rapidly to changes in the system of the higher education and take into account the needs of the private sector. The amount of Private funding sources in Lithuania is ahead of Poland, France, Finland, and Denmark, but far behind the Great Britain. Currently very popular method of public study financing is based on performance contracts. European countries have moved from study funding by block grants and line-item budget to formula bases funding mechanisms and now it changing to performance contracts funding mechanism. Funding formulas is one of the most popular funding mechanism that is currently most often used as an auxiliary tool for the allocation of funding. Thus, we can see the transition from input to output based on criteria of funding. This promotes higher education institutions to improve the quality and efficiency of study. Performance contracts are applied in Scandinavian and Western European countries, Eastern European countries still use funding mechanisms based on the funding formula. Lithuanian financing method is still based on input funding criteria (enrollment rates) and it may adversely affect the quality of studies, may not improve the study programs of higher education but merely may increase the number of them. |
