Trends in University Autonomy in Europe and Ireland

Thomas EstermannDirector Governance, Funding and Public Policy

Development

Dublin29.09.2014

850 members in 43 countries

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Structure

I. Why university autonomy

II. The state of university autonomy in Europe/Ireland: data – trends – scorecards

Staffing autonomyFinancial autonomyOrganisational autonomyAcademic autonomy

Positive correlations exist between autonomy and: performance quality degrees of income diversification internationalisation efficiency and effectiveness

Institutional autonomy:

allows universities to decide on strategic priorities according to their strengths;

does not automatically lead to better performance, but it is an important prerequisite.

Why university autonomy?

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Challenges

• Institutional autonomy: is a complex concept that consists of various interconnected

elements

is contingent on the diverse cultural, political, legal and historical backgrounds of Europe’s HE systems

cannot be measured objectively

There are diverse systems, even within countries

There is not just one model – context is very important

• The Autonomy Scorecard: had to take into account constantly changing legislative

frameworks and at times contradictory policy developments

had to simplify complex situations…6…

Methodology of the Autonomy Scorecard

• The scoring system:

is based on deductions → restrictions on institutional autonomy are assigned a deduction value based on how restrictive a particular regulation is seen to be;

produces percentage scores for each indicator;

calculates the score for one autonomy dimension as an average of the scores for all indicators making up that dimension.

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Organisational

• Selection procedure/ criteria for rector

• Dismissal/ term of office of rector

• Inclusion/ selection of external members in governing bodies

• Deciding on academic structures

• Creating legal entities

Financial

• Length/ type of public funding

• Keeping a surplus

• Borrowing money

• Owning buildings

• Charging tuition fees for national/ EU students

• Charging tuition fees for non-EU students

Staffing

• Staff recruitment procedures

• Staff salaries

• Staff dismissals

• Staff promotions

Academic

• Deciding on overall student numbers

• Selecting students

• Introducing/ terminating programmes

• Choosing language of instruction

• Selecting QA mechanisms/ providers

• Designing content of programmes

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Staffing autonomy - trends

Recruitment procedures are less prescribed than before.

In most systems, restrictions still apply to staff salaries, although these are less likely to be due to the civil servant status of university staff.

Staff dismissals and promotions remain restricted in more than half of the systems studied.

The financial crisis has affected staffing policies in some countries.

Staffing autonomy – the scorecard

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Staffing autonomy issues now

The financial crisis has affected institutional autonomy

The Employment Control Framework has reduced staffing autonomy in all indicators and effects other dimensions as well

Salary bands are prescribed at central level

Additional restrictions and lower salaries at entry level for new staff

Reductions in salary through between 6-14% gross

Increased taxation, larger pension contributions, and other social charges impacts on salaries

Staffing autonomy 2014

Original scorecard

Updated 2014 version

Change Main reason

82%“high” cluster

43%“medium low” cluster

-39% Increased deductions on recruitment, salaries and promotions. Change in collective agreements on dismissal.

Financial autonomy – trends Universities generally receive their public funding as a block

grant, although its allocation may be restricted.

Surpluses can be kept and money borrowed in a majority of systems, but in practice, various limitations still apply.

Universities in most systems are able to own their buildings, but often require external permission to sell them.

The situation is complex, but universities tend to be more free to set tuition fees for MA and non-EU students.

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Financial autonomy – the scorecard 2012

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Financial autonomy issues now Earmarking of parts of the block grant for specific purposes should

be kept to minimum as well as top slicing

Institutions should be able to keep a surplus

Funding linked to student numbers requires reflection

Capacity to borrow money could be more flexible

Universities should have a longer funding period

Discussion on fees for national and EU students at Bachelor level

Financial autonomy 2014

Original scorecard

Updated 2014 version

Change Main reason

66%“medium high” cluster

63%“medium high cluster”

-3% Higher deduction to reflect increase in top-slicing from general budget

Organisational autonomy - trends

External members are now included in university governing bodies in a majority of systems, though external authorities often remain involved in their selection.

Universities in nearly all systems are free to create legal entities and decide on academic structures.

Rectors are always chosen by the universities, although external authorities often have to confirm the appointment.

Organisational autonomy – the scorecard 2012

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Organisational autonomy issues 2014

• Organisational autonomy in IE is advanced but:

more advanced countries have more flexibility in composition of governing bodies and smaller bodies

Threats to academic structure if legislation over staff numbers is implemented

Regulation on employment in legal entities should be made more flexible.

Organisational autonomy 2014

Original scorecard

Updated 2014 version

Change Main reason

81%“high” cluster

73%“medium high” cluster

-8%Change due to further deduction on capacity to decide on academic structures and further deduction on capacity to create legal entities

Overall student numbers are limited in nearly all systems.

Universities in Europe still have little freedom in choosing QA mechanisms.

Accreditation is still compulsory for BA/MA programmes in a majority of systems.

The language of instruction can be chosen freely in approx. 2/3 of all systems.

Ireland is the most autonomous system evaluated in the Scorecard.

=> No change in 2014

Academic autonomy - trends

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Academic autonomy – the scorecard 2014

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Other autonomy issues 2014

• Universities Act in principle strong framework for autonomy – but danger of reduction through additional legislation or threats of emergency legislation to force compliance.

• General direction of state policy towards increasing control of universities has intensified.

• Declining public budget and increasing state control in relation to staffing

• Draft legislation regarding ministerial directives, national labour agreements has the capacity to significantly impact on university autonomy

• Binding decisions of the Labour Court have an impact on institutions without their involvement.

Other autonomy issues II Strategic dialogue and performance contracts should not be taken

out of the core funding

These apply for the first time for 2014/2015 and funding was held back by the HEA on that basis

Public service reforms (e.g. shared services initiatives, central procurement, employment control framework, etc.) have an impact on universities' ability to manage their own affairs (individually and/or collectively)

The introduction of a National Research Prioritisation Exercise that orients competitive research funding towards 14 priority areas reduces scope for internal strategic decision-making.

9-10 October 2014, Bergamo, Italy

www.eua.be/eua-funding-forum-bergamo

http://www.eua.be/eua-funding-forum-bergamo.aspx

Strategies for sustainable funding of universities

Thank you for your attention!

For further information, please contactthomas.estermann@eua.be

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