A Study On The Financial Support Of Government In Private Colleges

As an vital part of higher education, Non-governmental higher education plays an increasingly important role in our country. In the context of popularization of higher education, it undertakes the task of popularization of higher education. Therefore, its development directly links to the process of entrance to the popularization stage for China’s higher education. With the conditions of socialist market economy, non-governmental higher education emerged as the times require. Because of its quasi-public goods property, it also needs the support of public finance when following the market law. How to effectively carry on the government financial support to the non-governmental colleges and universities is the key point to analyze and explain in this paper.On the challenges to financial support for private colleges and universities from the government in the society, the author analyzed the theory basis for the government to support private colleges and universities financially from the public goods theory, higher education cost sharing theory and externality theory. Meanwhile, the author also explain the necessity of it from a legal point of view, charity angle and economic angle. Moreover, the current government financial support for private colleges and universities are facing various predicaments: the old concepts, lack of policies, lack of support, single support mode and regulatory difficulties. On the basis of analyzing current dilemma, the author aims to point a clear direction for walking out of the predicament that the government financially support the non-governmental colleges and universities by the combination with exploration of the current Shanghai municipal government’s fiscal supports, such as the establishment of special support mechanism for private education、exploration of the implementation for the new classification management reform and etc. At the same time, through two cases study of non-government colleges and universities, the author analyzed the financial support conditions and the results and pointed out the existing problems in the two universities so as to provide a realistic evidence for the standardization and innovation of government financial support for private colleges and universities.In summary, after the analysis of the status of government financial support for private colleges and the case study of the two private universities in Shanghai, the author put forward five suggestions for the government’s financial support: to innovate the government financial support mechanisms, to improve the relevant policies; the implement the legal corporate property right of the school, to strengthen the construction of internal control system in private universities; to perfect the supervision system of special funds, to explore new management mechanism of private universities; to actively explore the classified management mode of private colleges, to clear the direction of government financial support; to reinforce the basic work of college financial management, to regulate the financial part of private colleges and universities by the laws; to richen the forms of government financial support and to clear the responsibility for local government financial support.