Funding formula for Polish universities

Abstract

We describe and discuss in detail the funding formula distributing public subsidy for Polish universities. The formula is commonly considered as a kind of a „black box” almost impossible to be analysed. Even simple questions about amount of money generated by one student or one professor remained unanswered. Precise answers to such questions are presented only in this paper. Thus we were able to analyse quantitatively practical problems like profitability of granting scholarships for PhD students. Our study confirmed earlier hypotheses about drawbacks of the funding formula. The easiest way for getting more funding is to increase the number of students with simultaneous lowering of teaching standards which has a deteriorating influence on the system of higher education in Poland. Contrary to common views the algorithm turned out to be stable and predicatable with one exception: the reaserch component (based on the numer of research projects) is susceptible for chaotic fluctuations. In conclusion we indicate that appropriate modifications of the funding formula are both necessary (even urgent) and feasible.