The paper considers the ways to optimize financing public higher education institutions of Ukraine. Public higher education institutions acutely feel the lack of financial resources. The study describes that it is necessary to reform the models, methods and forms of financing higher education institutions. The paper explains the impact of autonomy of higher education institutions on their development. The autonomy level of university determines the possibilities for diversification from additional sources. The results found that more autonomy of higher education institutions will allow them effectively generate and use financial resources. The review outlines the diversification of financial resources public universities. One of the key factors of the university success is to implement the diversification strategy into the overall academic strategy and mission of the higher education institution. The analysis recommends the performance-based funding system and public higher education institutions achieve certain performance indicators. The performance-based funding system will promote higher competitiveness of education institutions and improve the quality of higher education in general. The conclusions suggest the development trends of financing public higher education institutions of Ukraine.

Keywords: financing, public higher education institutions, optimization of financing, diversification, performance-based funding, financial au-tonomy.

Date of submission 31.07.2017

DOI: https://doi.org/10.17721/1728-2667.2017/194-5/1

References

1. Law of Ukraine 1556-VN of 1 July 2014 [online] Verkhovna Rada of Ukraine. Available at: http://zakon4.rada.gov.ua/laws/show/1556-18
2. Boholib, T., 2006. Financing the development of higher education and science in the transformational period. Kyiv: Millennium, 506 pp.
3. Vasylyk, O., 2000. Theory of Finance. Kyiv: NIOS, 416 pp.
4. Barr, N., 2009. Financing higher education: lessons from economic theory and reform in England. Higher Education in Europe, 34 (2), p. 201. DOI: http://dx.doi.org/10.1080/03797720902867419
5. Johnstone, D. Bruce, 2013. The Politics of Higher Education: Common Misunderstandings about the Financing of Higher Education. Peking University Education Review, 2, pp. 36-45.
6. Data of statistical bulletins of the State Statistics Service of Ukraine [online] State Statistics Service of Ukraine. Available at: http://www.ukrstat.gov.ua
7. Education at a Glance 2016: OECD Indicators [online] Organization for Economic Co-operation and Development (OECD). Available at: http://www.oecd-ilibrary.org/education/education-at-a-glance-2016_eag-2016-en
8. World Bank Open Data [online] World Bank Group. Available at: http://data.worldbank.org
9. Stadnyi, E., 2016. Conceptual model of public performance-based funding [online] Analytical Center CEDOS. Available at: https://cedos.org.ua/uk/osvita/kontseptualna-model-derzhavnoho-finansuvannia-vnz-za-rezultatamy-diialnosti
10. Varnaliy, Z., Krasilnyk, O., Khmelevska, L., 2017. Financing Public Higher Education Institutions of Ukraine. Kyiv: Knowledge of Ukraine, 231 pp.
11. Reports of the Association of European Universities [online] Association of European Universities. Available at: http://www.eua.be/activities- services/publications.aspx
12. Hillman, Nicholas W., David A. Tandberg, Alisa H. Fryar., 2015. Evaluating the Impacts of ‘New’ Performance Funding in Higher Education. Educational Evaluation and Policy Analysis, 37 (4), pp. 501-519. DOI: https://doi.org/10.3102/0162373714560224
13. Organization for Economic Co-operation and Development (OECD), 2010. Performance-based Funding for Public Research in Tertiary Education Institutions: Workshop Proceedings. [online] Organization for Economic Co-operation and Development (OECD). Available at: http://www.oecd- ilibrary.org/education/performance-based-funding-for-public-research-in-tertiary-education-institutions_9789264094611-en
14. Hicks, D.,   Performance-based university research funding systems. Research Policy, vol. 41 (2), pp. 251-261. DOI: https://doi.org/10.1016/j.respol.2011.09.007
15. Kalenyuk, I., 2013. Problems of improvement financial and economic management of education system. Herald of Kyiv National University of Technology and Design, 5, pp. 172-178.