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The executive vice president of CRUCH, Osvaldo Corrales, spoke before the Fourth Joint Subcommittee on Budgets and requested the restoration of base contributions to universities and the use of one hundred percent of the surpluses of the FSCU.
The committee rejected Chapter 90, corresponding to the Undersecretariat of Higher Education. The budget item will continue its processing in the Joint Special Budget Committee.
“The proposal presented by the Executive, which expresses a very significant decrease in the base contributions to the universities of the Council of Rectors, erodes the foundations on which a higher education system has been built that is a leader in Latin America and has broad international recognition and, therefore, represents a strength for the country,” stated the executive vice president of CRUCH, Osvaldo Corrales, during the start of the discussion of the 2027 Budget Bill corresponding to the Ministry of Education.
In his presentation before the Fourth Joint Special Subcommittee on Budgets, held on Wednesday, October 7, Corrales presented the diagnosis and proposals supported by the 30 institutions that make up the Council.
“The Chilean higher education system, and particularly its most important pillar, the universities of the Council of Rectors, are a strategic strength of the country and have demonstrated this on numerous occasions,” he stated. Based on this, he requested the restoration of base funding to at least the levels contemplated in the adjusted 2026 Budget and authorization for the use of the 100% surplus from the University Credit Solidarity Fund (FSCU).
Regarding this last point, he explained that these are university resources that have no alternative use and whose use does not imply increased public spending. The project reduces the authorization to use the previous year's surplus from 451,330 pesos to 351,330 pesos and the authorization for accumulated resources from 301,330 pesos to 201,330 pesos.
Significant drop in baseline contributions from universities
Rector Corrales stated that CRUCH recognizes the scenario of fiscal constraints and the need to optimize public spending, but warned that universities currently do not have the leeway to face new adjustments without affecting the fulfillment of their functions.
In his presentation, he noted that the project contemplates a real reduction of 11% in resources allocated to higher education compared to the adjusted 2026 Budget Law, equivalent to 1.4% of 36.035 billion pesos. He expressed particular concern about the decreases in four institutional allocations, whose cuts total 1.4% of 36.618 billion pesos: the Institutional Contribution to State Universities (-11.41%), the Direct Fiscal Contribution (-31%), the State Universities Strengthening Plan (-34.81%), and the Performance-Based Fund (-10.61%). He also highlighted the 27.31% reduction in contributions to private higher education institutions participating in the tuition-free program.
In detail, the AIUE decreased by 11.4% (equivalent to $13,184 million), the AFD registered a reduction of 3% (corresponding to $9,487 million), the State University Strengthening Plan by 34.8% (reaching $7,731 million), and the Performance-Based Fund fell by 10.6% (i.e., $6,216 million). Adding to this picture is the further decrease of 27.3% (equivalent to $2,609 million) in contributions to private Higher Education Institutions participating in the Free Tuition program.
Subcommittee rejected the Higher Education Chapter
Following the presentations and analysis of the proposal, the Fourth Joint Subcommittee on Budgets proceeded to vote on Chapter 90, corresponding to the Undersecretariat of Higher Education. The result was 3 votes in favor and 3 against, on two separate occasions, so it was agreed to vote again in the afternoon session. Ultimately, the chapter was rejected in the subsequent vote.
“We applaud the Commission’s decision to reject the allocation in order to open a space for dialogue with the Executive Branch and potentially reinstate these allocations that have been reduced in the current proposal,” Corrales stated.
The executive vice president added that changes in the financing system have reduced the margins that institutions have to cope with further adjustments.
“Changes in the financing system have meant that today there is no room in the higher education system for further adjustments without seriously compromising the ability of our institutions to fulfill their mission roles and the contribution we make to the country from Arica to Punta Arenas,” he stated.
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Text: CRUCH Communications
PhotographsCRUCH and UV
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