Financing of Higher Education

The paper is focused on the Financing of Education. In the Czech Republic, the education is mainly financed from public resources, which causes many problems and limitations. The resources of public finance are obtained from taxes of all economic subjects. The schools need always more finances but it is not possible to increase taxes. Another problem is control of schools by state officers, which restricts self-reliance and independence of schools. The next chapter is focused on the main trends in development of tertiary education in the Czech Republic after 1989. The transformation of universities was accompanied by many problems and a lot of them remain not solved. However, they are so important that they can influence the quality of the education. There are many reasons against public financing which can be found in this paper. That is why I think there is a need of new alternative possibilities of financing, especially in the tertiary education. There are four various alternative ways of financing in this paper: „voucher plan“ by Milton Friedman, bank loans, principle of postponed prices, fund-investing system and private foundations. The reform of financing of the higher education is necessary and I try to present reasons of this claim. In this paper, you can also find suggestions of the reform which weren’t accepted by current governments. The next part shows educational and practical requirements demanded from the graduates and to which extend they are capable to meet them. In the last chapter, I try to present my own opinion of the whole problematics.