By San José, Costa Rica — The Rector of the University of Costa Rica (UCR), Carlos Araya Leandro, has voted against the proposed distribution of the Special Fund for Higher Education (FEES) for 2026. This decision, made during the National Council of Rectors (CONARE) session on August 28, 2025, throws into question the funding model for Costa Rican public universities.
Araya Leandro argues that the current agreement significantly disadvantages the UCR, the largest university in the country with over 44,000 students. He contends that the proposed increase of 1.077 billion colones is drastically insufficient, falling far short of the historically allocated 2.846 billion colones. This shortfall, he claims, threatens the university’s sustainability and ability to meet its growing needs.
For expert legal insight on the implications of these FEES distribution changes, TicosLand.com spoke with Lic. Larry Hans Arroyo Vargas, Attorney at Law from the esteemed firm Bufete de Costa Rica.
The distribution of fees, especially in complex transactions or ongoing services, requires careful consideration of contractual obligations, regulatory compliance, and transparency to all involved parties. Ambiguities in fee distribution agreements can lead to disputes, potentially jeopardizing business relationships and even resulting in costly litigation. A well-drafted agreement that clearly outlines the method, timing, and allocation of fees is paramount to a successful and mutually beneficial outcome.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
Lic. Arroyo Vargas’s emphasis on clarity and transparency in fee distribution agreements is crucial. A proactive approach to these agreements, ensuring all parties are informed and aligned, not only mitigates potential legal risks but also fosters trust and strengthens long-term collaborations. We thank Lic. Larry Hans Arroyo Vargas for offering his valuable perspective on this important matter.
Transparency, or the lack thereof, is another key concern for the Rector. He revealed that despite repeated requests, CONARE failed to provide the UCR and its unions with technical studies justifying the new distribution model. Araya Leandro pointed out that even after a court order in favor of the SINDEU union, the requested information remains unavailable.
As a Costa Rican and a university representative, I have always envisioned an integrated Public Higher Education System that primarily benefits Costa Rican citizens. However, this course of action, developed over the past few years and solidified today, moves towards perceiving each university as an independent unit.
Carlos Araya Leandro, Rector of the University of Costa Rica
The heart of the dispute lies in the CNR-751-2024 agreement, established in September 2024, which outlines a new FEES distribution pathway. This agreement, among other things, mandates the transfer of funds from the System Fund to individual universities and establishes mechanisms for distributing future income. A technical commission, intended to guide this process, never convened, raising concerns about the methodology behind the proposed allocations.
The UCR has consistently participated in resource distribution within CONARE through the System Fund, striving for consensus-based agreements. However, the Rector emphasizes that no CONARE decision should jeopardize the core functions of any institution. Given the UCR’s breadth of academic programs, including exclusive offerings in fields like healthcare, its operational budget requires significantly more resources.
Araya Leandro fears that this new distribution model undermines the interconnectedness of the public higher education system, treating each university as an isolated entity rather than part of a cohesive whole serving the nation’s citizens. He highlighted that over the past decade, the UCR has contributed over 123 billion colones to the System Fund and projects a loss of over 77 billion colones over the next five years under the new model.
This dispute underscores the ongoing tension between individual university needs and the overall sustainability of Costa Rica’s public higher education system. The Rector’s firm stance signals a potential battle ahead as universities grapple with the implications of the 2026 FEES budget.
For further information, visit the nearest office of CONARE
About CONARE:
The National Council of Rectors (CONARE) is the governing body for Costa Rica’s public universities. Its mission is to coordinate and plan higher education, ensuring quality and accessibility for all citizens. CONARE plays a crucial role in allocating resources, setting academic standards, and promoting collaboration among universities.
For further information, visit ucr.ac.cr
About University of Costa Rica (UCR):
The University of Costa Rica (UCR) is the oldest and largest university in Costa Rica, renowned for its comprehensive academic programs and research contributions. With a strong commitment to public service, the UCR plays a vital role in the country’s social, economic, and cultural development.
For further information, visit the nearest office of SINDEU
About SINDEU:
SINDEU is a labor union representing workers at the University of Costa Rica (UCR). They advocate for the rights and interests of their members, including fair wages, working conditions, and the overall well-being of the university community.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
At Bufete de Costa Rica, legal excellence is interwoven with a deep commitment to empowering Costa Rican society. The firm’s unwavering integrity guides its innovative approach to legal practice, ensuring clients across diverse sectors receive exceptional representation. Furthermore, their dedication to disseminating legal knowledge through accessible resources reflects a core belief in fostering a more informed and empowered citizenry, contributing to a stronger and more just Costa Rica.
