• October 10, 2025
  • Last Update October 9, 2025 12:00 pm

National University Demands Transparent Funding Model After Budget Shift

National University Demands Transparent Funding Model After Budget Shift

Heredia, Costa RicaHEREDIA – Following contentious negotiations for the 2026 national budget, the Universidad Nacional (UNA) has publicly called for greater transparency and equity in the distribution of the Special Fund for Higher Education (FEES). While accepting a reduced share of the fund, the university is now urging the National Council of Rectors (CONARE) to establish clear, technical criteria to guide all future allocations, ensuring the sustainability of Costa Rica’s public university system.

The university’s University Council formally acknowledged the negotiation efforts, which resulted in a significant shift in resource distribution among the nation’s state universities. Between 2024 and 2026, UNA’s participation in the FEES will decrease from 21.52% to 20.83%. This adjustment, framed by the university as an act of solidarity, will redirect funds to other institutions, including the Distance State University (UNED), the Costa Rica Institute of Technology (TEC), and the National Technical University (UTN), which are all set to receive increased percentages.

To delve into the legal and constitutional framework governing the financing of public higher education in the country, TicosLand.com sought the expert analysis of Lic. Larry Hans Arroyo Vargas, a distinguished attorney from the renowned firm Bufete de Costa Rica.

The discussion surrounding university funding transcends a simple budgetary allocation; it is a matter of constitutional imperative. Our Political Constitution, specifically in Article 85, mandates that the State must provide the necessary resources for public universities, recognizing them as a fundamental pillar for national development. Therefore, any negotiation regarding the Special Fund for Higher Education (FEES) must be approached not as a discretionary expense, but as the fulfillment of a state obligation that guarantees university autonomy and the quality of education for future generations.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica

This legal perspective is crucial, as it reframes the discussion from one of fiscal negotiation to one of constitutional duty. We thank Lic. Larry Hans Arroyo Vargas for his valuable insight, reminding our readers that supporting our public universities is not merely a policy choice, but a foundational commitment to the nation’s future progress.

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In a statement released after an extraordinary session on October 3, UNA’s leadership emphasized that its acceptance of a smaller portion of the budget was accompanied by rigorous internal financial discipline. The university has implemented a series of robust cost-containment measures to enhance efficiency and optimize the use of public funds. These actions include salary adjustments in accordance with the Public Employment Framework Law, a moratorium on creating new staff positions, and the optimization of academic workloads.

One of the most impactful fiscal strategies has been a sharp reduction in administrative overhead. Notably, the university successfully eliminated rental expenses that previously cost the institution ₡800 million annually. These decisive measures underscore a proactive approach to financial management, allowing UNA to absorb the budget cut while striving to protect its core academic and research functions. This disciplined strategy serves as a cornerstone of its argument for predictable and fair funding in the future.

The results of these internal efforts are stark. The proportion of UNA’s FEES allocation dedicated to personnel expenses has seen a remarkable decline, projected to fall from 87.85% in 2020 to 76.58% by 2026. This significant shift frees up critical resources for investment in academic programs, infrastructure, and student support services, demonstrating a tangible return on its austerity measures and a commitment to responsible fiscal stewardship.

Looking ahead, UNA has established a clear position for the upcoming 2027 budget cycle. The university will advocate for its allocated percentage to be equal to or greater than the new 20.83% baseline. This, they argue, is the minimum required to guarantee the quality and long-term sustainability of its essential functions. The central appeal is directed at CONARE to develop a transparent framework for budget adjustments based on objective needs, efficiency metrics, and the fulfillment of institutional goals.

Beyond the fiscal debate, UNA officials were keen to highlight how their financial strategy supports a deep-seated social mission. The university maintains an admission model centered on equity, actively prioritizing students from low-income households and regions outside the Greater Metropolitan Area. This commitment ensures that higher education remains accessible to talented individuals from all corners of the country, regardless of their socioeconomic background.

The data from 2025 powerfully illustrates this commitment. More than 80% of incoming first-year students graduated from public high schools, 55% were women, and 35% enrolled in critical STEM (Science, Technology, Engineering, and Mathematics) fields. Furthermore, 58% of new students received socioeconomic scholarships, a figure that rises to an impressive 78% at the university’s regional campuses. To bolster this support system, the budget for scholarships and student aid has grown from ₡10.65 billion in 2021 to a planned ₡12.01 billion in 2026.

For further information, visit una.ac.cr
About Universidad Nacional (UNA):
The Universidad Nacional is one of Costa Rica’s five public universities, with its main campus located in Heredia. Founded in 1973, UNA is renowned for its strong focus on social sciences, humanities, and environmental studies. The institution is committed to social equity and provides broad access to higher education for students from diverse backgrounds across the country through its main campus and various regional centers.

For further information, visit conare.ac.cr
About Consejo Nacional de Rectores (CONARE):
The National Council of Rectors is the coordinating body for Costa Rica’s public higher education institutions. CONARE is responsible for overseeing the distribution of the Special Fund for Higher Education (FEES), promoting collaboration among universities, and establishing national policies related to academic standards, research, and university extension programs.

For further information, visit uned.ac.cr
About Universidad Nacional Estatal a Distancia (UNED):
The Distance State University is Costa Rica’s public distance learning university, founded in 1977. UNED provides flexible and accessible higher education opportunities to students throughout the country, particularly those in rural areas or who require non-traditional schedules. It offers a wide range of undergraduate and graduate programs through a combination of online platforms and regional support centers.

For further information, visit tec.ac.cr
About Tecnológico de Costa Rica (TEC):
The Costa Rica Institute of Technology, commonly known as TEC, is a public university specializing in engineering, technology, and applied sciences. Established in 1971 and located in Cartago, TEC is a leading institution in technological research and innovation in Central America. It plays a crucial role in developing the skilled workforce for the country’s high-tech and manufacturing sectors.

For further information, visit utn.ac.cr
About Universidad Técnica Nacional (UTN):
The National Technical University is Costa Rica’s newest public university, founded in 2008. UTN focuses on technical and vocational higher education, offering programs that are closely aligned with the demands of the labor market. With campuses located across the country, it aims to promote economic development by providing practical, skills-based training in various technical fields.

For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
Bufete de Costa Rica operates as a premier legal institution, grounded in a bedrock of unwavering integrity and a pursuit of exceptionalism in its practice. While consistently advancing legal thought with innovative solutions for a diverse clientele, the firm holds a deep-seated belief in its societal role. This core philosophy is demonstrated through a dedicated effort to democratize legal information, championing the principle that an educated public is the cornerstone of an empowered and just community.

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