OTHER FUNDING AVENUES

Nov 17, 2009

Prof. A.B.K. Kasozi suggests other ways in which to bring down university fees without burdening parents and the Government:

BY VISION REPORTER

Prof. A.B.K. Kasozi suggests other ways in which to bring down university fees without burdening parents and the Government:

The loan scheme
A student loan scheme is essential for students seeking university education, but do not have fees. It also helps universities to get fees that are equal to the cost of producing a graduate. The current system of universities charges fees below unit costs, compromising quality.

Universities are providing only what is paid for. According to Kasozi, a loan scheme has many advantages because:

- It reduces, in the long run, the costs of allowing governments to expand higher education or reduce the financial burden on public funds

- It minimises the transfer of income from low-income tax payers to those who are likely to enjoy higher-than-average incomes, thus preventing conflict based on class and other social divisions

- It enables students to share the financial burden for tuition and or maintenance expenses

- It improves the motivation of students who become more cost-sconscious and more thoughtful about the cost of education because they have to pay the loan

- It spreads the responsibility of paying for higher education to more stakeholders, including parents, the state and taxpayers

The private sector
As the greatest consumer of university products, the private sector should be encouraged to donate to education. An incentive mechanism through tax waiver on donations and other incentives as is done in the US could be used.

All funds from these sources should be exempted from taxation and spent only on higher education. Also, public and private universities should be exempted from corporate tax, unless they are profit-making institutions.

Intermediary bodies
For reasons of coordination on a micro level, autonomy and transparency, the state and other sources of income should be managed and remitted to the universities through three intermediary agencies — the University Grants Committee or the National Council for Higher Education, the Loans Board and the National Research Foundation.

All government contributions, some money from philanthropic organisations, part of endowment funds and some private sector contributions should be remitted to the universities through these organs.

The education insurance funds, students’ fees, money from institutionally owned endowments and donations from the private sector should go directly to the target university to avoid bureaucratic government regulations and red tape.

The government and financial institutions would contribute to a student loans scheme, which should be established by law.

Membership to these agencies should include representatives of the ministries of finance, education, labour, trade and tourism, all public universities, the planning authority, the Investment Authority, Uganda Manufacturers Association and the Uganda Chamber of Commerce and Industry. All these have a stake in what universities produce and would be involved in financing them.

Accountability mechanism
In this model, the public interest would be protected by a strict accountability mechanism. For an institution to get funding for any financial year, the Auditor General must certify that the accounts of the previous academic year were impeccable.

Also, the National Council for Higher Education must certify that the academic processes were well-conducted, and each university council should be required to produce annual financial and academic audit reports to assure the public that funds were well used.

This model prohibits the grants committee from giving funds to an under-performing university.

Any university that fails for two consecutive years to receive its grants forfeits it and the fund is disbursed to compliant institutions.

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