The MPs from UKROP propose to provide the institutions of higher education with real financial independence at the legislative level. To this end, a draft law No. 8529 “On Amendments to the Law of Ukraine “On Higher Education” regarding the funds of higher education institutions” was registered in the Verkhovna Rada. The document was prepared by the MPs from the “Ukrainian Association of Patriots” Iryna Konstankevych, Taras Batenko, Oleksandr Dubinin, Viktor Shevchenko, Oleksandr Shevchenko, Valentyn Didych and Vitaliy Kupriy in cooperation with the representatives of other political forces.
The UKROP members noted that the Law “On Higher Education” adopted in summer of 2014 envisages the implementation of the autonomy concept for higher education institutions of state and communal ownership. More simply it means that legislation allows universities to dispose revenues from providing paid educational services at their own discretion – for example, spend money on property purchase, capital construction and repair of premises, renovation of material and technical base, etc.
However, within the legislative framework a serious legal conflict arose, because such independence of institutions of higher education contradicts the current rules of the Budget Code.
“The fact is that the current Code (Budget) does not allow budgetary institutions, in particular higher education institutions, to use revenues at their discretion. Funds are to be included in a special budget fund and can only be spent on clearly defined goals. The universities are preparing estimates, which are subject to approval, and their heads are personally responsible for the use of already budgetary funds,” explained the representatives of the “Ukrainian Association of Patriots”.
In addition, the Law “On Education” gives the right to the higher education institutions to open current and deposit accounts in state-owned banks. However, this norm also contradicts the budget legislation.
“The Budget Code prohibits state and municipal institutions to open current accounts in banks. This means that institutions of higher education in fact cannot exercise the rights provided by the Law “On Higher Education,” noted the UKROP representatives.
The draft Law No. 8529 proposes not to include university revenues from provision of paid educational services to special funds of budgets and estimates. In addition, the document should allow heads of higher education institutions to spend such funds on the activities of universities.
At the same time, the attraction of additional sources of income through the provision of paid services should not result in reduction of funding from the state and local budgets.
The UKROP members noted that the Verkhovna Rada should simultaneously make changes to the budget legislation. This concerns the draft law No. 8530 “On Amendments to Article 13 of the Budget Code of Ukraine regarding the Funds of Higher Education Institutions”.
The document also proposes not to include revenues from the provision of paid services to special budget funds of higher education institutions. In addition, according to the proposed changes, the prohibition on the opening of extrabudgetary accounts at banks for state and municipal institutions should not apply to higher education institutions in the event of placing funds received through the provision of paid services.
“Adoption of these bills will give real autonomy to the state and communal universities and will enhance the implementation of the autonomy concept for higher education institutions,” are convinced the representatives of the “Ukrainian Association of Patriots”.
