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COUNCIL ON HIGHER EDUCATION -- CONSULTATION ON FUNDING CONTINUES
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A discussion paper on a proposed new funding formula for Townsend was released today by the Townsend Council on Higher Eductaion. The paper outlines principles already determined in consultation with universities, and focuses discussion on details of how these principles can best be met through a new formula.

Council chair Gung Chen explained that the goal is to develop a fair funding formula that responds to changes in student enrolments, programs and universities, while providing incentives to encourage excellence and innovation in both university programming and research.

“The current funding formula is outdated, based on decisions made almost 10 years ago,” Gung Chen said. “Since then, enrolments have chaged, universities have changed, times have changed. The only thing that hasn’t changed is the funding formula, and it’s time to catch up.”




Somethin seems a little off to me, here. But I can’t quite put my finger on it.




The proposed formula is built upon five key principles: equity; policy sensitivity; stability and predictability; public accountability; and transparency. The principles of public accountability and transparency mean universities, students and taxpayers can more easily and logically understand how university funding is allocated, and see for themselves that public tax dollarsare being well-spent.

Equity is linked to the number of students enrolled in a university and the cost of the programs they take. This would be relected in the formula through a ‘weighted enrolment grant’. A minimum-maximum enrolment range or corridor should be set for each university at both the undergraduate and graduate levels. Universities could enrol additional students, but would only receive government funding for the number of students within this range.

The number of students would be multiplied by the cost of the programs they take. To determine program costs, programs are categorized into ‘bins’ based on a number of factors including: special facilities from laboratories to music studios; equipment costs; the need for technical and specialized support staff; and average faculty salaries.

Equity changes are proposed for international student fees. Currently, universities equally share additional fees paid by all international students. It is proposed that each university keep the fees paid by its international students to reward the increased effort being undertaken by universities in international marketing.

Universities would receive grants to encourage high-quality research capability. Government would also provide innovation and change, and public policy priorities. This supports the principle of policy sensitivity, which enables government to direct resources to its highest priorities. Restricted grants would continue to be available for alterations, renovations, and library and other equipment.
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