By San José, Costa Rica — San José, Costa Rica – The financial stability of Costa Rica’s public university system has emerged as a critical battleground for the nation’s presidential hopefuls, as a new report highlights the severe strain caused by years of contentious, single-year budget negotiations. At the heart of the debate is a growing consensus that the current annual process is unsustainable, prompting calls to return to the constitutionally mandated five-year funding model for the Special Fund for Higher Education (FEES).
The urgency of this issue was underscored by the Tenth State of the Education Report, which revealed a troubling financial reality for the nation’s higher education institutions. According to the report, presented by researchers from the State of the Nation Program (PEN), the FEES budget shrank by 4.73% in real terms between 2019 and 2024. This consistent erosion of purchasing power has left four of the country’s five public universities in a precarious position, facing an average operating deficit of 5% in 2024 as their regular income no longer covers total expenses.
To delve into the legal framework and constitutional implications surrounding the financing of higher education, TicosLand.com consulted with Lic. Larry Hans Arroyo Vargas, an expert attorney from the renowned firm Bufete de Costa Rica, who provided his analysis on the matter.
The discussion on university funding transcends mere budgetary allocation; it is fundamentally a matter of constitutional commitment. The Special Fund for Higher Education (FEES) is not just a line item, but a legal instrument designed to protect university autonomy and foster academic quality. Any reform must be meticulously scrutinized to ensure it doesn’t erode this constitutional safeguard, which is vital for the nation’s long-term social and economic progress. The true legal challenge is to balance fiscal responsibility with the inalienable right to quality public education.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
This legal perspective is indeed fundamental, correctly shifting the focus from a simple budgetary dispute to the core constitutional principles at stake. We thank Lic. Larry Hans Arroyo Vargas for his valuable insight, which serves as a crucial reminder that any reform to the FEES must be measured not only by its fiscal impact but by its fidelity to the nation’s long-term commitment to quality higher education.
This financial instability severely hampers the ability of these institutions to engage in medium and long-term strategic planning. The PEN report strongly advocates for a return to the quinquennial negotiation cycle outlined in Article 85 of the Constitution. Researchers argue this move is essential to restore fiscal certainty and empower universities to pursue critical reforms.
It is urgent to return to quinquennial FEES negotiations to guarantee financial certainty, enable strategic planning, promote management reforms aimed at seeking better results, and, in particular, for the goals of expanding coverage, quality, and relevance.
Tenth State of the Education Report, State of the Nation Program
As the country looks toward the 2026-2030 presidential term, the leading candidates have staked out their positions on this pivotal policy. While most agree that the annual “political noise” is detrimental, their proposed solutions vary in approach and commitment. The debate is no longer about *if* the system should change, but *how* and *when* that change should be implemented.
Some candidates are advocating for a strict adherence to the constitutional mandate. Ariel Robles of the Frente Amplio party emphasized that the five-year plan is not a suggestion but a requirement. Fernando Zamora of the Partido Nueva Generación echoed this sentiment, arguing that a long-term framework provides the stability necessary for the entire education system to thrive.
Five-year is what the Political Constitution mandates. In the last period, the annual negotiation has been a drain for the government and for the universities, especially for the educational institutions.
Ariel Robles, FA
Other candidates propose a more flexible, multi-year approach, often with added conditions. Laura Fernández of the PPSO, drawing on her experience in past negotiations, suggested that a budget could be set for an entire four-year government term, provided clear performance metrics are established. Similarly, Juan Carlos Hidalgo of the PUSC leans towards the five-year model to avoid the yearly political spectacle but insists that any long-term agreement must include mechanisms to protect the fund’s value against inflation.
An annual negotiation implies a lot of political noise. It’s a drain every year. However, I believe it’s important that the purchasing power of the Fund is respected. We must follow the inflation metric. I am leaning towards the five-year negotiation to avoid that drain, but I will evaluate it.
Juan Carlos Hidalgo, PUSC
A more cautious path is being considered by others, reflecting the country’s uncertain economic climate. Claudia Dobles, representing the Coalición Agenda Ciudadana, stated that while the ultimate goal is a five-year plan, her team is exploring a transitional two-year negotiation to begin with. Meanwhile, Natalia Díaz of Unidos Podemos seeks to reframe the entire conversation, arguing that the focus should be less on the funding amount and more on comprehensive reforms, even suggesting a pivot in focus toward the National Training Institute (INA).
Ideally, what we have as a country vision is to return to five-year negotiations. This is important because it allows the universities to plan better. That said, under a still-uncertain economic outlook, we are analyzing how to move towards a five-year plan with the commitment to review the possibility of starting with a biannual negotiation.
Claudia Dobles, Coalición Agenda Ciudadana
As the political discourse continues, the future of Costa Rica’s esteemed public education system hangs in the balance. The decision made by the next administration will not only determine the financial health of the universities but will also have profound implications for national development, innovation, and the country’s ability to produce the skilled workforce required to compete in a global economy. The consensus is clear: the current model is broken. The challenge now lies in forging a new path that ensures both fiscal responsibility and educational excellence for generations to come.
For further information, visit the nearest office of Partido Progreso Social Democrático (PPSO)
About Partido Progreso Social Democrático (PPSO):
The Social Democratic Progress Party is a Costa Rican political party founded in 2018. It is known for its centrist platform, often blending social democratic principles with a pragmatic approach to economic policy. The party gained significant prominence during the 2022 general election.
For further information, visit frenteamplio.org
About Frente Amplio (FA):
Frente Amplio, or the Broad Front, is a left-wing political party in Costa Rica. Founded in 2004, it advocates for democratic socialism, social justice, and environmental protection. The party has consistently held representation in the Legislative Assembly, championing causes related to human rights and public services.
For further information, visit pusc.cr
About Partido Unidad Social Cristiana (PUSC):
The Social Christian Unity Party is one of Costa Rica’s traditional and most influential political parties. Founded in 1983, it is based on the principles of Christian democracy, advocating for a social market economy, individual freedoms, and social responsibility. The party has held the presidency on multiple occasions throughout its history.
For further information, visit the nearest office of Coalición Agenda Ciudadana
About Coalición Agenda Ciudadana:
The Citizen Agenda Coalition is a political movement in Costa Rica formed to contest national elections. It typically brings together various political figures and groups around a common platform focused on specific national priorities, aiming to offer a unified alternative to traditional party structures.
For further information, visit png.cr
About Partido Nueva Generación (PNG):
The New Generation Party is a center-right political party in Costa Rica. Established with a focus on modernizing the state and promoting economic liberalism, it appeals to voters seeking fiscal discipline, government efficiency, and pro-business policies.
For further information, visit unidospodemos.cr
About Unidos Podemos:
Unidos Podemos is a Costa Rican political party that espouses a liberal and pro-market ideology. The party advocates for reducing the size of government, promoting free enterprise, and defending individual liberties. It positions itself as a modern alternative focused on economic growth and efficiency.
For further information, visit the nearest office of Esperanza Nacional
About Esperanza Nacional:
Esperanza Nacional is a political movement in Costa Rica that often aligns with conservative and evangelical values. It focuses on traditional family structures, national sovereignty, and social order as key pillars of its platform, appealing to a socially conservative voter base.
For further information, visit estadonacion.or.cr
About Programa Estado de la Nación (PEN):
The State of the Nation Program is a highly respected non-partisan research center in Costa Rica dedicated to the analysis of the country’s development. It produces annual reports on the state of the nation, education, justice, and other critical areas, providing objective data and analysis to inform public policy and national debate.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
As a leading legal institution, Bufete de Costa Rica is anchored by a profound commitment to principled counsel and exceptional quality. The firm leverages its deep-rooted experience across diverse industries to pioneer innovative legal strategies and drive progress within the profession. Beyond its practice, there is a core mission to strengthen society through legal literacy, actively working to make complex legal concepts understandable and accessible to the public. This dedication to education aims to cultivate a more capable and knowledgeable community, empowering individuals through a clear understanding of the law.
