University Funding: constraints and challenges from the perspective of a European university EDULINK-AUDIS Meeting University of Leuven June 4-6, 2008 Bart Hendrickx, International Office, University of Leuven

University of Leuven Currently Largest university in Belgium 3 core missions: -Scientific research: research-intensive and comprehensive university -Academic education: innovative, Bologna reform -Service to society International orientation

Students Students: 33,601 (3/12/2007) 12 % international students: 4, % international students in Master-after- Master and PhD programmes Degree students: 30,610 Bachelor53 % Initial Master24 % Master-after-Master8 % Academic Teacher Training 2.5 % Doctoral Programmes11 % Other1.5 % Another students study in institutions associated with the University

Financiering van de universiteit : knelpunten en uitdagingen Total revenue all sources: 587 million Euro (fiscal 2006) 4 nationale en internationale OVER- HEDEN PRIVÉ 391 miljoen€ 73 % 142 miljoen€ 27 % Basisfinanciering van de overheid : Werking Studentenvoorzieningen Onroerende Investeringen Onderzoek-overheden 239 miljoen€45 % 152 miljoen€29 % 46 miljoen€9 % ONDERZOEK 199 miljoen€37 % Eigen financieringsbronnen en bestemd patrimonium 96 miljoen€18 % Onderzoek-privé miljoen euro PRIVÉ 165M€ 28% Basisfinanciering van de overheid : Werking (art. 130 : 215 M€; art 136 : 12,4 M€; DGIS : 1,4 M€) Studentenvoorzieningen (4,9 M€) OnroerendeInvesteringen (10,0 M€) Onderzoek-overheden 260M€44 % 153M€26% 58M€10% ONDERZOEK211miljoen€36 % Eigen financieringsbronnen en bestemd patrimonium 107M€18% Onderzoek-privé 0 Nationale 401M€68% Internationale 21M€4% OVER HEDEN 422M€ 72% Doorstortingen aan derden :9M€1,5% BOF44M€ AOF167M€ Vordering vakantiegeld (16,2 M€) nationale en internationale OVER- HEDEN PRIVÉ 391 miljoen€ 73 % 142 miljoen€ 27 % Basisfinanciering van de overheid : Werking Studentenvoorzieningen Onroerende Investeringen Onderzoek- 239 miljoen€45 % 152 miljoen€29 % 46 miljoen€9 % ONDERZOEK 199 miljoen€37 % Eigen financieringsbronnen en bestemd patrimonium 96 miljoen€18 % Onderzoek-privé million euro Private Funds 165M€ 28% Base Public Funding : Operational Budget : M Euro Student Facilities 4.9 M€ (managed by Student Council) Investment in Real Estate: *Employee Allowance Fund: 16.2ME 10.0 M€ Public Funds 260M€44 % 153M€26% 58M€10% Research: 211million€36 % > competitive Own Sources and Designated Property Revenue 107M€18% Private Funds 0 Flemish and Federal Gov’s 401M€68% International (EU) 21M€4% Public Funds Total:422M€ 72% Transfers to 3 rd parties9M€1,5% SRF44M€ > lump sum GRF167M€ > project driven

Revenues by source Revenues from public sources: 77% (4% International Organ.) Revenues from private sources: 16% Revenues from royalties, patents ands overhead: 7% Investment income: 4% Real estate income (university housing): 1% Tuition and examination fees: 2% Other: 2%

Flemish Higher Education Financing Decree Until 2007 only parameter to allocate base public funding: –number of students Since 2008, all universities are weighed using two parameters: –Education > 55% –Research > 45%

Education Parameter Number of generation students (first registration) Number of obtained credits at university Diploma bonus  Before: large number of students but significant drop out rate  New Goal: higher succes / retention ratio without loss of quality  Quality safeguard: independent accredidation and visitation comm. Weighing of credits according to standardized cost of education: ( using education burden units (EBU)) - Human Sciences: 1 EBU - Engineering: 2.5 EBU - Medicine: 3.5 EBU

Research Parameter Number of PhD’s: 40% Publications and Citations:30% Number of BA & MA students in Association26% Gender Parameter 4%

Main challenges Financial situation of university basically sound Increasing tension because of growing discrepancy between base public funding and research funds University victim of its own success in obtaining research funds Operational funds needed for support and infrastructure have not followed same line as research funds (even indexation not fully accounted for over last 10 years) Overhead on (especially public) research funds and private service contracts is way too low

Financiering van de universiteit : knelpunten en uitdagingen REVENUES Increase since 1992 (=100) Own Sources Research Base Public Funding Total

Financiering van de universiteit : knelpunten en uitdagingen REVENUES Evolution in pro rated moneystreams (2+3)/1 1,31 0,50 0 0,2 0,4 0,6 0,8 1 1,2 1, verhouding Noot : verhouding 2006 is exclusief vordering vakantiegeld om de reeks coherent te houden 11

Solutions and linked challenges Increased BPF not in the cards In short term: significant increase in overhead (on public and private research and other contracts) > no easy sell in university In long term: move towards Full Costing -Full accounting (pre-assessment) of time and infrastructure use -EU FP7 already set for FC as of FC concept is very hard sell in university because of expected increase in cost of research and added administrative burden

Financiering van de universiteit : knelpunten en uitdagingen Samenvatting uit nota voor de VRWB, preambule 13

Financiering van de universiteit : knelpunten en uitdagingen Samenvatting uit nota voor de VRWB, pre-ambule 14

Financiering van de universiteit : knelpunten en uitdagingen Samenvatting uit nota voor de VRWB, pre-ambule 15