The impact of the main elements of the new funding formula on the block grants for Polish universities

Abstract

In 2017, the new funding formula for distribution of block grants for Polish universities came into force. Based on the figures, we discuss the impact of the new funding formula on block grants for universities. Besides the analysis of both size and structure (partition into different components) of the grants, we present accurate calculations concerning gains or losses for individual universities resulting from the introduction of elements of the algorithm such as: a reduction of the student component if the student-academic staff ratio is greater than 13, multiplication of the staff component by the academic category (based on the evaluation of the research activity) or benefiting the university for enrolling foreign students. The new funding formula provides powerful and fast-acting incentives, and so will have a great influence on the higher education system in Poland.