Dáil Éireann Debate, Tuesday - 24 May 2022
516. Deputy Rose Conway-Walsh asked the Minister for Further and Higher Education, Research, Innovation and Science the estimated cost to the Exchequer of providing equal funding per student to both traditional and technological universities in order to end the situation of a 60:40 split in core funding through an increased allocation to the technological sector; and if he will make a statement on the matter. [25874/22]
Amharc ar fhreagraIn considering this issue it is important to reflect that the current Higher Education Authority (HEA) approach has developed over time and that the sector has been consulted in developing the allocation model. Reforming core funding including the allocation model must be positioned within a wider context of performance, governance and reform across the tertiary education and training system being driven by my Department.
At present the Department allocates recurrent funding to the Higher Education Authority (HEA) for direct disbursement to HEA designated higher education institutions. Funding is distributed via the Recurrent Grant Allocation Model (RGAM) which currently utilises a 'two pot' system. The Recurrent Grant Allocation Model (RGAM) is allocated through a funding formula. The formula is driven by audited prior-year student numbers. These are weighted for the relative costs of providing education in different disciplines.
In 2016, the Higher Education Authority (HEA) appointed an independent Expert Panel to review the current allocation model for funding higher education and to make recommendations on the most appropriate funding model for the future. The completed review recommends reforms to the HEA funding distribution model. A key recommendation was that (in principle) the future funding model should adopt a universal approach to supporting all higher education institutions facilitated by the development of a Costing Model applied consistently across Higher Education Institutes.
Aligned with the significant transformation of the sector in terms of the development and designation of Technological Universities, the implementation of this recommendation requires consideration in the context of the sustainable model of funding for higher education. In this regard, on the 4th of May I launched Funding the Future, a landmark policy on the future of higher education.
Funding the Future, which was approved for publication by Government, settles the question on sectoral funding Higher Education. The policy sets out the vision and direction of higher education funding, our commitment to addressing legacy issues in higher education and detailing our ambitious plans for investment and reform.
As outlined in the framework, my Department will engage with the HEA to develop and implement the necessary changes and updates to the funding distribution model to ensure it aligns with and facilitates key reforms necessary. The objective of this process is to ensure a transparent funding model which reflects sectoral developments, encourages high quality teaching & learning provision, excellent research and the achievement of key strategic objectives.
This will be supplemented through the development of a comparable reporting process with the sector, which will inform the consideration of future strategic policy objectives and outputs. This will build on the progress realised from the RFAM report and will be further informed by the recent report between the HEA and the OECD on resourcing higher education.
However, it is important to be clear that the funding model is the means to allocate the agreed level of available recurrent funding to higher education institutions. Changes to the allocation model may alter the allocations that are ultimately provided to individual institutions, however such changes should not, in their own right, be a cost increasing or decreasing measure in terms of the overall allocation that will be available for distribution to the institutions.
