2027 Budget: CRUCH calls for rejection of Higher Education allocation

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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.

Chapter 90, corresponding to the Undersecretariat of Higher Education, obtained three votes in favor and three against, so it was agreed to submit it to a vote again in the session scheduled for this Wednesday at 5:00 p.m.

“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 this 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.

During her presentation, she explained that resources allocated to Higher Education have decreased by 11.3 trillion pesos compared to the adjusted 2026 Budget Law, a reduction equivalent to 1.4 trillion pesos (36.035 billion). In this regard, most of this decrease is due to reductions concentrated in four institutional allocations, which together account for cuts of 1.4 trillion pesos (36.618 billion): the Institutional Contribution to State Universities (AIUE), the Direct Fiscal Contribution (AFD), the State Universities Strengthening Plan (PFUE), and the Performance-Based Fund for G9 universities.

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.

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.

The subcommittee will vote again on the Higher Education chapter.

Following the presentations, 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, so it was agreed to vote again at the next session, scheduled for Wednesday afternoon at 5:00 p.m.

After the session, Corrales valued the decision as an opportunity to review the budget proposal and address the concerns raised by the universities.

Text: CRUCH Communications

PhotographsCRUCH and UV