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June 17-19, 2011

Bilkent University, Ankara, Turkey 

“Leveraging Quality Evaluation in the Planning and Budgeting of Higher

Education: The Current Israeli Experience”

Prof. Nachum FingerBen-Gurion University of the Negev and the Council for Higher Education, Israel

22nd INTERNATIONAL CONFERENCE ON HIGHER EDUCATION

Common Approach…

Budget Quality

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Example 2010…

“Government funding as leverage for quality teaching and learning: a south african perspective”

Source: Sabiha Y. Essack, Indirani Naidoo and Glen Barnes, University of KwaZulu-Natal, South Africa. Higher Education Management and policy, Volume 22/3, OECD 2010.

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Example 1984…

“if operational priorities are explicit, the budget can become an effective tool for the enhancement of quality.”

Dennis Jones, Budgeting for Academic Quality: Structures and Strategies, in J. Folger (Ed.). Financial Incentives for Academic Quality. New Directions for Higher Education, no. 48. San Francisco: Jossey-Bass, December 1984, pg.15.

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Can we interchange budget and quality?

“if operational priorities are

explicit, the budget can become an

effective tool for the enhancement

of quality.”

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In other words…

If quality problems are explicit, can they become an effective tool for planning and budgeting?

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BudgetBudgetQuality !Quality !

QualityQualityBudget ?Budget ?

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The Planning and Budgeting Committee (PBC) of the Israeli Council for Higher Education (CHE) has adopted this approach in negotiating the current six years budget of higher education.

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A Quick Glance at Israel and its Higher Education System.

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Israel: Some Basic Data – 2010/11 Area 22,145 sq. km. Population 7.5 million

$ (3.5 NIS) NIS GDP 218.0 bill. ~763.0 bill. State Budget 93.0 bill. 325.3 bill. Education Budget 9.3 bill. 32.4 bill. Higher Ed. Budget 2.1 bill. 7.2 bill.

Not including Higher Ed. Budget

*

*

Academic Institutions - 2010/11Research Universities 7 Open University 1Art Academies 2Comprehensive Colleges 12Engineering Colleges 7Teacher’s Colleges 24Non-Budgeted Colleges 13

Total 66

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Students & Faculty – 2010/11

Students 293,000 Bachelor 228,740 Master 52,460 Ph.D. 10,600 Other (Dip.) 1,200

Faculty ~ 7,000-10,000 Tech & Admin. ~ 10,000

Scientific Publications of IsraelAs Percentage of World Publications

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0.00

0.20

0.40

0.60

0.80

1.00

1.20

Per

cen

tage

s

Source: Science & Engineering Indicators 2008, US NSF

Scientific Publications per Million Population, 2005

14Source: Science & Engineering Indicators 2008, US NSF

The Council for Higher Education

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The Council for Higher Education The Law The framework of the system of higher

education in Israel is defined in the Council for Higher Education Law – 1958, with 11 amendments enacted over a period of 40 years.

 This law established the Council for Higher Education and the procedures for the accreditation of institutions of higher education.

The Council’s Responsibilities

AccreditationTo grant a permit for the opening and maintenance of an institution of higher education;

To accredit an institution as an institution of higher education;

To revoke the accreditation of an accredited institution.

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The Council’s Responsibilities Approval of New Degrees &

ProgramsTo authorize an accredited institution to confer an

academic degree

To approve new programs of study in existing

institutions

Licensing Foreign InstitutionsTo license branches/extensions of foreign institutions

of higher education which operate in Israel.

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Academic Freedom

Article 15 of the Law guarantees that the institutions of higher education are autonomous in the conduct of their academic and administrative affairs within the framework of their budgets and their terms of accreditation.

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The Planning Budgeting Committee (PBC)

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The PBC

The Council delegated to the Planning and Budgeting Committee (PBC) its responsibilities of planning and budgeting. The PBC is therefore the executive arm of the Council.

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The PBC as a Buffer

To be an independent intermediary body between the Government and the institutions of higher education, in all matters relating to allocations for higher education

To negotiate with the Ministry of Finance the share of higher education in the state budget.

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Allocation of Funds

To ensure that institutional budgets are

balanced and executed according to plan

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The Budget

Some 60% - 70% of the higher education budget comes from the Government

It is usually based on a 5-year plan

through … Negotiations between the Finance Ministry and

the Planning and Budgeting Committee (PBC) of the Council for Higher Education (CHE)

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Breakdown of the Income of the Institutions of Higher Education

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PBC Allocations – 65%PBC Allocations – 65%

Tuition Fees – 21%Tuition Fees – 21%Other – 14%Other – 14%

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The PBC The PBC BudgetBudget

Institutions of

Higher Education

Research & other Bodies

Student Aid

Planning and Coordination

To draw up plans for coordinated and efficient

development of higher education on the national

level

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CHANGE…

June 2003 The CHE adopts the recommendation of a

National Committee to institute Quality Assessment and Assurance throughout the entire Higher Education System

2003/04 CHE establishes a QA unit and the first two

disciplines are chosen for a pilot evaluation

2004/05 The Process is underway…

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What prompted this change? Some major reasons Transition to mass higher education Internationalization of higher education Economic/budgetary pressure Pressure from stakeholders An inductive / ripe environment Perhaps . . . a realization by CHE that as part

of the enhanced accessibility to HE some control may have been lost and another look may be beneficial

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Transition to mass higher educationInstitutions 90/91 05/06

10/11Res. Universities 7 7 7Open University 1 1 1Art Academies 2 2 2Comp. Colleges 0 8 12Engr. Colleges 2 8 7Teachers’ Colleges 7 27 24Non-Budg. Colleges 2 8 13Total 21 61 66

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*Students 89,000 250,000 293,000

*Not including branches/operations of foreign institutions

2010

Fast growth *4

200019901980

Number of Students

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Main Features of Adopted QA Process All Institutions every 8 years All programs every 6 years External Review Committee (top in discipline)

Appointed by & Reports to CHE On-Site visit by Committee

Self-evaluation process as basis for review

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Issues evaluated

Mission, goals Study programs - all degrees Faculty - achievement, promotion criteria, etc. Students - admissions, grading, services, etc. Organization - committees; decision process Infrastructure - labs, library, IT, etc. Community involvement and cooperation

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External Review Committee Composition Chair - senior academic figure Members - senior faculty from abroad and

from Israel. In special cases also a leading (non-academic) professional figure

Number - depending on no. of programs and nature of discipline

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Unique Features

All programs within a discipline are reviewed at the same time by the same committee.

Committee is asked to provide: Individual reports for each program to serve

as guideline for improvement General overview of discipline to serve as

guideline for CHE & PBC policy decisions Set of standards.Source: The Israel HE & QA, Feb 2011.

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Thus far we evaluated

31 Fields

209 DepartmentsAt time of budget negotiations:

16 fields, 125 departments

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Recent Experience Israel:

Decade of Budget Cuts

Concurrent with…

Increased Student Enrollments

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Problem not Unique to Israel…

HE budgets are under pressure and targeted for reduction in many countries throughout the world

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“Proposed budget cuts would lower quality of higher education.” (USA)In an on-going series of posts this week we discuss what proposed cuts to our higher education system will do to our state’s future. Policymakers should strive to sustain a higher education system that is accessible, affordable, and high quality.Under the Governor, House and Senate proposals for the 2011-13 biennium, four-year institutions would experience at least a 20 percent reduction, and community and technical colleges would be reduced by 10 percent or more.

Source: Tara Lee 6/5/2011. http://budgetandpolicy.org/schmudget/proposed-budget-cuts-would-lower-quality-of-higher-education   

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“Budget Cuts Will Affect Quality of Higher Education” (Mozambique)Maputo — Education Minister Zeferino Martins has warned that cuts to the budgets of the country's two public universities, the Eduardo Mondlane University and the Pedagogical University, will compromise the quality of education in both institutions…

the budget cuts are due to the current international financial crisis, which has forced the government to reduce funds for some parts of the public sector, including health and education.

According to the Minister, Eduardo Mondlane University, the largest and oldest institution of higher education in the country, will suffer a budget cut of 38 per cent..

Source: http://allafrica.com/stories/201104130139.html, 12 April 2011

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Budgeting & the Budgeting Model

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General objectives of the Budget Model:

1. To provide an objective and fair tool for the allocation of public funds to the regular operating budgets of the institutions of HE while encouraging the efficiency, quality and the enhancement of teaching & research outputs.

2. To enable the institutions to plan and budget their activities in a way that maintains the academic and administrative autonomy of each institution.

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Israeli Higher Education Funding:The Basics1. Dual support system

• Block grants budgeting model support the core human capital and basic infrastructures

• Public & private science funds provide grants to specific research projects

2. Outputs based budgeting model

• Quality & quantity related funding formula

• Allocation takes into account the outputs over the previous periods

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The New Budgeting Model:Main Features Reforming the model after 18 years:1. Competition over excellence in research:

emphasizing scientific publications and competitive grants

2. Incentivizing institutions to hire new faculty and strengthen competitive advantages

3. Reducing the time interval between output and budget

4. Addressing national needs: periphery, labor market5. Transparency of the model to the institutions and

general public

•Competitive grants (34%)•Scientific publications (34%) •Non competitive grants (15%)•Ph.D students (15%)•Master thesis graduates (2%)

•Competitive advantage bonus per discipline

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•The equation is a product of:

•Students numbers•Tariff per discipline & degree level•Graduation rate coefficient•Faculty/students rate coefficient

Teaching component

Bottom Up – Absolute model

(Universities & Colleges)

Research component

Top Down – Relative model

(Universities only)

The Budgeting Model Components

The New Budget

Reverses Trend Gradual Return of Budget to previous levels and more Lines Infrastructure Special Programs I-CORE Student/Faculty Revised Funding/Discipline

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Goals of New Budget (5 yrs.)

Faculty: Universities 16% Colleges 25%

Student/Faculty Universities 12% Colleges 8%

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Disciplines Reviewed

Business Administration Electrical Engr. Physics Medicine History Social Work Industrial Design Mechanical Engr.

Economics Psychology Chemical Engr. Communication Genl. Philosophy Computer Science Physical Theraphy Architecture

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Economics example.…

The Evaluation Committee Prof. Elhanan Helpman- Harvard University, U.S.A. Prof. David M. Kreps- Stanford University, U.S.A.

Committee Chairperson Dr. Leora Meridor- The Private Sector, Israel. Prof. Joel Mokyr- Northwestern University, U.S.A. Prof. Ariel Pakes- Harvard University, U.S.A. Prof. Robert S. Pindyck- MIT, U.S.A.

Source: A General Report of the Committee for the Evaluation of Economics Studies, December 2008, CHE.

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BRAIN DRAIN

“in Winter 2007, Ali et al. compiled biographical data on Assistant Professors at the top ten economics departments within the United States. Approximately 28% received their first degree from U.S. college or university; standing second in terms of country of origin (measured by the first degree) was Israel. With 16% or 18 Assistant Professors.”

Source: Ali et al. “Elite Scientists and the Global Brain Drain”, preprint, university of Warwick, September 2007. the departments in sample are Harvard, Chicago, MIT, Berkeley, Princeton, Stanford, Northwestern, Pennsylvania, Yale, and NYU, with a total of 112 assistant professors.

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Problem not unique to Israel

Getting Graduates to Come Home – Not So Easy!

“It is said that we live in the new era of the ‘brain exchange’, but in our view the old-style brain drain continues to a significant degree.”

Source: Philip G. Altbach and Wanhum Ma

International Higher Education, No. 63, spring 2011, p. 8.

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Physics example.…

The Evaluation Committee Prof. Hanoch Gutfreund, The Hebrew University,

committee Chairman Prof. Daniel Ashery, Tel Aviv University Prof. Moshe Deutsch, Bar-Ilan University Prof. James Langer, University of California Santa

Barbara, U.S.A. Prof. Stephen Lipson, the Technion, Haifa

Source: A General Report of the Committee for the Evaluation of Physics Studies, December 2007, CHE.

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Problems pointed out

“…Specifically, it is necessary to allocate funds for the renewal of old equipment and modernization of outdated experiments.

[…]

Israel’s standing in the international physics arena is not guaranteed. If it is to maintain this standing, it must be able to sustain its human resources, attract the best young scientists and provide them with the necessary working conditions.”

A General Report of the Committee for the Evaluation of Physics Studies, December 2007, CHE.

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Psychology and Behavioral Science Committee Prof. Susan Andersen, Chair of the committee, New York University Prof. Emeritus Victor Azarya, Hebrew University Prof. Yinon Cohen, Columbia University Prof. Susan Goldin-Meadow, University of Chicago Prof. Avishai Henik, Ben Gurion University Prof. Morris Moscovitch,Toronto University Prof. Steven J. Sherman, Indiana University Prof. Varda Shoham, University of Arizona Prof. Seymour Spilerman, Columbia University Prof. Emeritus Sidney Stauss,Tel Aviv University

A General Report of the Committee for the Evaluation of Psychology and Behavioral Science, December 2009, CHE.

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:Recommendations

Psychology is a laboratory science like other life sciences & should be cassified as such.

Requires comparable human resources, equipment, laboratory space

The PBC should budget psychology as a life science, not as a social science, as is typical in North America.

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Problems…

Lack of Faculty e.g. Economics Deteriorating Infrastructure e.g. physics Budget allocation e.g. Clinical Psychology

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Lack of Faculty

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Freeze in hiringFreeze in tenure

Downsized facultyLarger classes

BRAIN DRAIN

Budget cuts

To Tackle BRAIN DRAIN & Research Infrastructure CREATE

I – COREIsraeli Centers of Research Excellence

30 centers over 5 yrs.

With investment of 1.35 bill. NIS (~386 mill. $)

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Centers of Excellence Goals…

Strengthen Leading Role Reverse Brain Drain Create Critical Mass – Comparative Adv. Promote Academic Innovation –

Interdisciplinary Research Promote Inter-Institutional Collaboration

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Typical Center Package

1. Academic Appointments

2. Research Grant up to 400,000 NIS ($114,000/yr for 5 years)

3. Eqpt. Grant. Lab. setup up to 2 mill. NIS ($571,000)

4. Critical Mass of Top Researches in Area 20-30 researcher 5-10 new 25%-50% returning

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First 3 I-CORE announced:

Molecular basis of human diseases (HU) Cognitive processes (W) Compute science (TAU)

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HE Budgets & the Global Recession“Many nations, such as China, are providing generous salary and start-up funds to recruit Chinese-nationals – to in essence, reverse the brain drain toward a strategic policy of “brain gain”. Increased global competition for talent is inevitable as nations invest in their higher education systems and research capabilities, and one variable will be access to research grants and funds for quality laboratories and graduate students.”

Source: Higher Education Budgets and the Global Recession- Tracking Varied National Responses and Their Consequences, February 2010, John Aubrey Douglass, University of California- Berkeley. Research &Occasional Paper Series: CSHE.4.10

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Infrastructure & Budget Allocation

Infrastructure (Physics example)

In addition to specific infrastructure via the I-CORE program- New budget includes allocation for lab. equipment modernization.

Budget Allocation (Psychology example)

Budget allocation tables were updated. Psychology removed from social sciences and is now funded somewhere between social science and life science.

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Summary…

Being explicitly aware of quality problems (not incidental, local problems) and having objective data quality can be used to leverage both budget and planning!

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http://www.che.org.il

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CHE website

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