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In a letter addressed to the Minister of Finance, Jorge Quiroz, the Council of Rectors and Rectors proposed to address structural problems of the university system with the Executive.
The initiative includes the creation of a working group to study the duration of university degrees and a review of the financing mechanisms for higher education.
Agreeing with the Executive on a long-term agenda for higher education, establishing a working group to study the duration of degree programs, and moving towards fiscally responsible and sustainable financing for universities are the three pillars of the proposal from the Council of Rectors of Chilean Universities (CRUCH) within the framework of the discussion of the 2027 Budget.
The proposal was sent to Finance Minister Jorge Quiroz late Monday afternoon, November 9, in a letter signed by the Executive Vice President of the Council of Rectors of Chilean Universities (CRUCH), Rector Osvaldo Corrales, on behalf of the Council's 30 member universities. In the letter, the institutions acknowledge the need to safeguard public finances and emphasize that this objective must be compatible with preserving the country's academic and scientific capabilities.
“We share the goal of a fiscally sound state. At the same time, we are convinced that higher education is a strategic issue for the same purposes of growth, productivity, and development that the Government seeks to promote,” the document states, highlighting the role of universities in the training of advanced human capital, research, and innovation.
The first commitment proposes agreeing with the Executive Branch on an agenda for the development of higher education that addresses the system's structural problems, moving beyond the tensions of the annual budget debate. The universities have expressed their willingness to begin this work and review their own practices.
“A shared agenda, with objectives, deadlines and commitments from both parties, would allow the State to have the fiscal predictability it needs and the universities the stability they require to fulfill their mission,” the letter states.
Review of the duration of the races
As a second measure, CRUCH proposes to establish “a working group to study the current duration of degree programs, considering the proposal for a national framework of qualifications in higher education presented by the Commission of Academic Vice-Rectors; and the existence of institutional programs that address the leveling of knowledge from the school system to guarantee university success, taking into account the heterogeneity of degree programs and institutions and safeguarding the quality and territorial contribution of research-intensive universities.”.
“We propose that this committee be formed during the first quarter of 2027 and that its conclusions be available before the 2028 Budget is formulated,” the document states.
Sustainable financing
The third commitment proposes to move towards a fiscally responsible and sustainable financing system for universities and the country, through changes in regulated fees and student credit.
“This entails reviewing the methodology for setting the Permanent Regulated Fees associated with free tuition, so that they adequately reflect the real costs of providing the programs. It also entails replacing the State-Guaranteed Loan system with an income-contingent loan, which does not transfer the risk to higher education institutions,” the letter states.
In this context, the Council warns that institutional funding from families has been steadily declining, a situation that jeopardizes the viability of universities and is exacerbated by the country's demographic crisis. "Current demand-side subsidy policies, on their own, do not allow the system to project its development in the medium and long term. We need a funding model that makes this possible," the text states.
The letter concludes with an appeal to the Minister of Finance: “Mr. Minister, we believe these proposals pave the way for understanding between the Executive branch and the universities, in which both parties make commitments and whose ultimate goal is the country's development. Moving forward with this agenda would also allow us to approach the 2027 budget discussion from a different perspective, focused on fundamental solutions. We believe that the fiscal effort we are requesting—that is, to avoid any reduction in the core funding of universities in the 2027 budget, while maintaining the contributions established for 2026 in real terms, in exchange for these commitments—will allow both parties to effectively address the tasks outlined in this letter.”.
Text: CRUCH Communications
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