Step 1. Formulating the problem. The distribution of public budget funding for higher education does not meet the needs of the contemporary society. In the circumstances of dynamic economic change, the gap between universities and the labor market is getting wider and wider. For example, the government’s priority in higher education is engineering, which receives many state-funded places; in turn, the applicants prefer social sciences.
Step 2. Desk research. We read international and Ukrainian laws, consulted about international experience, consulted experts and developed a hypothesis: the funding model was designed in the historical period of planned economy, and now we needed a model adapted for the market economy and democratic society.
Step 3. Collecting and analyzing data. Every year, we analyzed the state education budget, the mechanisms of distribution of public procurement, the budgets of higher education institutions.
Step 4. Drawing conclusions and formulating recommendations. The more efficient approach is the performance-based funding (PBF) of higher education institutions.
Step 5. Real-life impact. We helped to implement a more transparent and justified mechanism of distributing state-funded college places using some elements of PBF. At the same time, the Ministry of Education has started to implement PBF, prepare legislative changes and finalize the formula for calculating the amount of funding for each institution.