Concerns Over the 2027 Budget Impact on Base Funding for Non-State Public Universities

Original article: Preocupación por impacto del Presupuesto 2027 en fondos basales de universidades públicas no estatales

During the ongoing discussions on the proposed 2027 Budget law, Álex Paz, Vice-Rector for Administration and Finance at the Catholic University of Valparaíso, presented the position of non-state public universities on the Higher Education budget and the potential impacts of José A. Kast’s government proposal on their funding.

The presentation took place in the fourth mixed subcommittee, and addressed both the general and specific aspects of the main modifications outlined in the budget proposal and its effects on the traditional universities within the G9 Network.

One of the key issues raised was the reduction of base funding, which serves as a crucial financing source for the operations of educational institutions.

According to the insights shared, while the Higher Education budget shows a decrease of 1.7%, this reduction primarily impacts the base funding allocated to state universities and those in the G9 Network. In contrast, funding linked to tuition waivers, scholarships, and State Guaranteed Loans (CAE) remains unchanged.

In this context, Álex Paz clarified that G9 universities receive two mechanisms of base funding: the Direct Fiscal Contribution (Aporte Fiscal Directo, AFD) and Performance-Based Contribution (Aporte Basal por Desempeño), which was established in the latest reform of the Higher Education Law.

«Base funds are freely available resources for traditional universities that enable them to finance academic activities that generate public goods,» he noted, emphasizing that these resources «contribute to the development of areas such as advanced human capital formation, knowledge generation, and community engagement.»

One of the main arguments presented on behalf of the G9 Network concerned the scale of the proposed cuts to these resources.

As explained by the Vice-Rector of PUCV, for universities within the Network, the reduction in base funding could approach 15%, «which represents a significant impact on their institutional financing for 2027.»

According to him, this represents an «unprecedented situation in the evolution of such resources, which have never decreased in real terms and at most have remained at nominal values,» adding that «this occurs in a context where several universities are in a financially fragile position.»

«It is implausible to think that a public policy aimed at supporting G9 universities, which demonstrate the highest quality standards in Chile and rank among the best in Latin America, would end up reducing their funding,» asserted Álex Paz.

We will continue to provide updates.