Czech Universities to Receive CZK 1.3 Billion Boost in Funding Amidst Plans for Long-Term Sustainability

The financial challenges that Czech universities have long faced are set to be alleviated as the Education Ministry prepares to allocate a minimum of CZK 1.3 billion more in funding next year compared to the initial budget proposal. This significant increase in funding is part of a broader effort to enhance the long-term sustainability of these educational institutions.

Radka Wildová, the head of the ministerial division overseeing higher education, science, and research, revealed this development during a Senate public hearing. According to Wildová, the additional funding of CZK 930 million for universities in the institutional category comes from internal restructuring in both fixed and executive segments. Additionally, CZK 387 million has been allocated to support the long-term strategic development of research organizations. Wildová emphasized that this represents the maximum feasible allocation at this time.

The Education Ministry’s budget draft for the next year earmarks approximately CZK 30.903 billion for universities, representing a CZK 2.3 billion increase from the previous year. For the current year, universities are expected to receive a total of CZK 30.915 billion, according to the Ministry of Education’s budget breakdown. The overall education budget for the upcoming year is projected to be around CZK 269 billion, marking an increase of CZK four billion from the current year, primarily attributed to higher salaries for primary and secondary school educators.

While the situation for universities is expected to improve over the next two years, Deputy Education Minister Jaroslav Miller acknowledged the challenges they face in the upcoming year. However, he highlighted that unspent funds from previous years remain available and anticipates significant improvements starting in 2025, aligning with the ministry’s plans to revamp the funding system that has been in place since the mid-1990s.

This transformation will be led by a panel of experts and may include the implementation of contractual funding, which would provide universities with guaranteed subsidies for several years. Another option under consideration is linking university spending to the gross domestic product (GDP), a proposal also advocated by university representatives.

Milena Králíčková, the rector of Charles University in Prague, stressed that the underfunding issue facing universities is a long-term challenge that requires a medium-term perspective aimed at fostering a knowledge-based economy. She proposed measures such as expanding foreign language programs for international students and greater engagement with practical applications, potentially through the issuance of micro-certificates for skills and knowledge acquisition.

Martin Štěpnička, Vice-Rector of the University of Ostrava, highlighted the recent decrease in higher education funding, from 0.48% to 0.42% of GDP. He noted that spending on higher education in the Czech Republic lags behind that of Slovakia and Poland. The country’s public expenditure on tertiary education, at 0.86% of GDP, falls short of the EU average of 1.27% of GDP, highlighting a notable disparity in educational investment.

In response to the ongoing financial challenges, academics from the philosophy faculties of Charles University and Palacký University in Olomouc have announced a strike scheduled for October 17, citing inadequate wages and teaching conditions. Jan Stejskal, Dean of the Olomouc philosophy faculty, revealed that the underfunding issue amounts to CZK 10 billion annually and suggested potential solutions, including basing university funding on the economic intensity of individual study programs, eliminating wage disparities between faculties, and reducing redundant study programs, subject to debate moderated by the National Accreditation Office.

Article by Prague Forum

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