Research On Investment And Financing Reform For Colleges And Universities In China

From the founding of New China,China has adopted a planned economic system.Funding for higher education has been burdened by financial department.After the reform of opening up policy,especially since the 1990 s,educational financial philosophy has undergone a major change,higher education has achieved leapfrog development,completing transition from elite education to mass education.Higher education investment in China has entered a multi-channel financing stage.There are three channels where investment and financing comes mainly from,government investment,personal and social investment,schools raised by themselves.Our continued growth in funding for education increased the proportion of GDP.The scale of higher education also increased exponentially.In this process,a series of investment and financing problems has also revealed.Higher education expenses per capita were lower than developed countries.Compared with the developed countries,the total investment is still insufficient.Financial allocation has become the main source of funding for colleges and universities,but out of efficiency.Private schools organizers investment and donations accounted for a very low proportion.Construction of infrastructure in Colleges and universities has made a big loan amount.Faced with China's large population and limited financial resources,tuition fee,there is an urgent need to form a perfect education investment and financing system to protect the development of higher education.From 2002 until now,China has adopted the "basic expenditure budget + project expenditure budget" allocation model.The mode is too simple,which leaves room for reform.In the USA,funding mode adopts systematic management system and pays attention to the performance of funding.In UK,funding model has adopted centralized system,mainly organized by Higher Education Funding Council.Explicit funding targets,a flexible organizational structure and assessment indicators are worth learning by China.Investment on construction in universities and colleges is at least tens of millions to more than hundred million dollars.The demand for funds has make the rapid expansion of loans which are mainly long term.However,there are someproblems,such as repayment ability of universities is limited,planning and construction indicators are not reasonable and so on.Thus,introducing PPP mode to the field of colleges and universities,developing professional and technical institutions,establishing resource sharing platform,improving the legal protection of construction funds is reasonable to considerate.Private Colleges investment in China has been at a low level.The primary problem to be solved is to make clear ownership and allocation of revenue.Category management will help straighten out ownership in private colleges and universities.Under insufficient financial allocation,the introduction of social capital into the private education would be an effective solution.In developed countries,donation is an effective way to cost share,and it is an important channel of University funding sources.Through professional operation,American universities and colleges invest in the field of domestic stocks,international stocks,fixed income products,non-traditional investment products as well as short-term bonds,to achieve a return of around 15%.Harvard University endowment supported one-third of university operating expenses.This suggests that Chinese universities should be more proactive in terms of the donation,setting up a special donor agencies to strengthen alumni relationship,carrying out professional management mode.With the strategy of developing the country through science and education,colleges and universities have gathered a group of scientific and technological achievements,which is one of sources of scientific and technological achievements in China.However,many research results have just stayed in publish stage.The technology transfer rate is only ten percent.In the United States,a lot of transfer of technology achievements have been made after the introduction of the Bayh-Dole Act.Colleges and universities in China should perfect the legal construction,strengthen the relationship of universities and enterprises,introduce new innovation system,accelerate the development of the intermediary market,improve investment and financing system and other measures to promote the transfer of technology.