The Research On The Difference Of The Local Government Financial Investment In Local Colleges And Universities

With the arrival of high education popularization, local colleges and universitieshave been responsible for higher education of the main responsibility. Under the influenceof fiscal decentralization, local government is responsible for the local universitiesbecause that the central and local governments provide education expenditures togetheraccording to the higher education system and subordinate relationship. The financialinvestment of local government on local colleges and universities directly affects theinterests of college, students and teachers. The local colleges and universities have theproblem of higher education finance funds shortage to varying degrees that the situationwill affect the overall development of the local colleges and universities.Firstly, the paper demonstrates the necessity of the local governments’ funding,defines the importance of local colleges and universities which can promote regionaldevelopment and let higher education system better and analyzes the ability of the localgovernments’ financial investment. Secondly, the paper show the contribution ratio of theoutput of local colleges and universities to the growth of GDP and show the differenceamong different local governments’ financial investment based on data analysis. Thirdly,this paper explains the reason for the difference among local governments’ fiscal inputbased on simple linear regression model and theoretical analysis. At last, using theAmerican, Japanese and England experience for reference helps local governments tomake up its mistake on fiscal input.Through the study we can find that the fiscal on local college and universities indifferent districts is different and not enough. And this difference is not related with GDPand relate with fiscal revenue. How much the local governments input and the lack ofgovernment responsibility leads to the results above. Therefore the governments shouldmake clear local governments’ investment responsibility, take different financial investment policy according to the regional difference and establish competitionmechanism and supervision mechanism in order to promote the development of localcolleges and universities better.