2024 Budget Law: CRUCH requests an increase in the use of surplus funds from the Solidarity Credit Fund for universities

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The Council of Rectors and Rectors, as well as the various student groups, agreed on the need to approve an increase in the surplus funds for this fund, from 35% to 50%. Furthermore, each group (G9, CUECH, and AUR) outlined the measures they propose to safeguard the sustainability and development of universities.

On the other hand, during the session of Thursday, October 26, the CRUCH plenary accepted the invitation of the Undersecretary of Higher Education, Víctor Orellana, to join a working group to redesign the higher education system in the academic, management and financing dimensions.

Within the framework of the discussion of the proposed 2024 Budget Law for Higher Education, the plenary session of the Council of Rectors of Chilean Universities (CRUCH), meeting at the University of La Serena, discussed various measures to ensure the sustainability of universities in the short and long term and, in addition, accepted an invitation from the Undersecretary of Higher Education to participate in the redesign of the financing system.

The executive vice president of CRUCH, Emilio Rodríguez, stated that “we value the openness we have shown to a permanent and systematic dialogue with the Undersecretary of Higher Education, and we maintain that it is important that anything that does not entail additional expenses be duly considered. We believe this is a way to move forward without further expenditure, while still generating some room for maneuver.”.

In this regard, the CRUCH (Council of Rectors of Chilean Universities) is requesting an increase in the use of surplus funds from the Solidarity Credit Fund. The 2024 Budget stipulates that universities can access up to 351 TP3T (Third-Percentage Tax) of the surplus funds generated in 2023 and up to 201 TP3T of accumulated surplus funds, as in previous years. The CRUCH is requesting an increase of no less than 501 TP3T.

Rodríguez, who is also the rector of the University of Tarapacá, explained that these are funds that have no alternative use and are essential for the CRUCH universities. “While it is true that there is a budgetary effort, this will not relieve us of the stress and financial strain that the Chilean higher education system is experiencing, and particularly the CRUCH university system, which is why these resources are essential,” he stated on Thursday, October 26.

In this regard, the Undersecretary of Higher Education, Víctor Orellana, stated that “we are working together.” He explained that “the country is going through a complex situation, which our government will address with the utmost fiscal responsibility.“ However, he added that ”we will make an effort to continue strengthening higher education institutions, especially those grouped under the Council of Rectors, which have accumulated historical experience and a capacity for knowledge generation and professional training throughout our national territory, and which are fundamental.”.

Another important point of the session was the agreement adopted by the plenary to accept the invitation of Undersecretary Orellana to join a working group for the redesign of the higher education system in the academic, management and financing dimensions.

Rector Rodríguez stated that “we find the Undersecretary's invitation to consider a redesign of the financing, management, and academic system very pertinent, aiming for a much better configuration of the institutions that are part of CRUCH in their respective territories, given the challenges that arise from a society characterized by constant, systematic, and uninterrupted change, where knowledge has become the essential source of nations' competitive advantage. In this context, a redesign of instruments and systems seems highly relevant and necessary.”.

Proposals from groups

In this regard, the presidents of the three groups within CRUCH presented their respective proposals regarding financing for the year 2024.

The president of the G9 network of non-state public universities and rector of the Catholic University of the Holy Conception, Cristhian Mellado, stated that while the network acknowledges the complexities the country is experiencing, it is necessary to "move forward with the historical recognition of the G9 universities by reinstating the budget provision that allowed for specific resources for the group, which could not be incorporated this year." He added, "We must also explore ways to increase the core funding of our universities, a proposal that can be included in this budget.".

For his part, the president of the Association of Regional Universities (AUR) and rector of the Catholic University of the North, Rodrigo Alda, indicated that, with the aim of strengthening the funds that regional universities belonging to the Council can receive, “a concrete work plan will be established for next year, also with the Ministry of Science, Technology, Knowledge and Innovation, in order to configure how, hopefully, regional universities can have priority in the funds that will come from the royalty, so that resources will be increased over the next few years.”.

Meanwhile, the president of the Consortium of State Universities of Chile (CUECH) and rector of the University of Valparaíso, Osvaldo Corrales, indicated that they have proposed measures to the executive branch that would not generate greater public spending. “First, we are supporting the use of a larger proportion of the surplus from the University Solidarity Credit Fund (...); second, we are requesting that the authorization for long-term debt, which must be granted by law to state universities, include a more expedited mechanism and that, in other administrative situations, greater flexibility be considered for public universities,” he stated.

Considering the proposals put forward by the groups, the Undersecretary of Higher Education, Víctor Orellana, stated that “we as the Executive will make an effort to accommodate their proposals, which seem very reasonable and also very responsible.”.

Finally, she addressed the academic modernization process being promoted by the Undersecretariat. “We will be working on regulatory adjustments within this modernization process, based on dialogue, to which the Council of Rectors is invited, so that these changes can be implemented during 2024. These changes will make higher education a driving force for the country's development, for producing more knowledge, and for moving our nation forward. Without development, the country will be unable to meet its challenges.” Regarding these challenges, she mentioned lithium, green hydrogen, decarbonization, diversification of the productive matrix, and territorial development.

Text: CRUCH Communications.

Photos:  Communications University of La Serena.