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- First, the budget sponsored admittance to the noted specialties losses its sense. If those who have won the enrolment competition and are receiving the budget funded tuition are not going to work in the budget sector, it is unclear why they study in a given university, for they either receive any university education as they have failed to get to any other higher educational institution, or they are keen to master a certain subject, but then it is unclear why this particular knowledge or just the university degree should be received at the budget expense, while the government is compelled to spend extra GRS funds to cover the tuition for those who will be working in the budget sector. If the budget finances the tuition for those who will be employed, for instance, as teachers in urban schools, while GRS is allocated to those who will be working in a rural school or remote regions, again, it is not clear while GRS should complement the budget funded university admittance. In other words, it is unclear why some budget funds should be earmarked to cover the tuition costs of a student with a burden, while others without that, and for what exactly the budget pays. Accordingly, the budget funded ad mittance to pedagogical, medical or agricultural universities should be cut down (perhaps, to the level of the GRS funded admittance) and it should be based on a fundamentally different basis.

- However, in the circumstances the rest of the budget funded admittance would loose its sense, for getting a prestigious and well paid job upon graduation is not specified by any terms and obliga tions vis vis getting of a non prestigious and poorly paid for spe cialty at the same government expense.

- Rather, GRS could be paid for the sake of providing the deprived family offspring with greater chances to receive a prestigious edu cation. In that case GRS would play the role of "social lift", but that would make the requirement to work for a certain period of time un der the compulsory terms an absurd.

There are far more questions to ask in this regard. The mechanism was suggested basing on the Chinese experience. However, in China, the university education is mostly paid one, while GRS are allocated to those who cannot pay for tuition and substitute the payment with an as sumption of the obligation to pick a compulsory given job.

Under the mixed model that combines both the budget and paid admittance GRS does not so much solve the problem of enhancing effi ciency of budget expenditures, as prejudices the principle of the budget financed (by means other than GRS) admittance. In addition, one should also take into account that the introduction of GRS reduces the amount of budgetary financing of universities on the basis of other financial instruments that is, it reduces the value of the standard of the budgetary financing or cuts down programs aimed at development of universities material and technical base and diminishes the funds needed to fill in various categories of GPEL, etc.

It seems to us that as proposed, the GRS system fails to accomplish the principal mission of increasing the efficiency of utilization of budg etary funds.

4.2.6. Conclusions Today, the national experts develop a new model of the national educational system that suggests reforming all the levels of education.

This is determined by a whole range of factors: the general reform of the budget network, demographic crisis, a rapid rise in the number of the higher school students and the proportion of students that receive paid tuition.

In the area of general education, the government plans to accom plish the transition to the 12 year long schooling, which should become profile in the senior forms. We believe that is inefficient, given the de facto mass nature of higher education, as the Bachelor=s level effec tively carries out the functions that are intended to be assigned to the profile school. In any case, it is unacceptable to carry out the transition to the 12 year schooling with the profile education in parallel with re taining the mass higher education, as it would result in double costs of the solution of practically the same task, without any complementary effect.

Equalization of starting opportunities for children from different so cial strata forms a particular task, as far as general education is con cerned. The solution of this particular task requires introduction of a compulsory pre school education, creation of conditions of the avail ability of complementary education to children, given that such educa tion should focus on encouraging them to succeed and developing their abilities.

In the area of higher education, there government is keen to accom plish the transition to the two level model of the higher education that is, Bachelor=s and Master=s. The legal fixing of the two levels of higher education would allow a partial optimization of costs of training special ists of the higher school as well as bridging, to some extent, the cur rently existing barrier between the paid and budget education. Given the above, the Bachelor level should deal with shaping basic fundamen tals of the professional culture (communication skills, those associated with the search and analysis of information, self education, team work, etc.). This kind of higher learning should be mass and funded according to the GPEL system. The Master level education should centre on train ing specialists who ultimately should become capable of organizing new areas of operations, engineering, research, and management. It should become mostly paid, for it ensures a fast access to the professional ca reer, with the government paying for tuition only for the most talented students.

The higher school reform should be implemented in conjunction with the shaping of the system of continuous vocational training which should enable the educational system to match rapidly changing needs of individual, the society, and economy, as well opportunities for equali zation of the access to a high quality education on all the levels of the education system. The establishment of the system of continuous edu cation will require:

- Introduction of a uniform system of educational programs that would allow to increase the students independence in modeling their education, particularly by means of a transfer from one educa tion institution to another;

- Change of the system of university attestation and accreditation by providing more ample rights to employers associations, public and professional organizations and educational community;

- Creation of the infrastructure of access to the continuous vocational training during the whole period of the citizens professional activity, particularly by developing professional training and retraining pro grams built according to the module organization principle;

- Fostering development of public and professional organizations whose operations are aimed at forming qualification requirements to the level of specialists training, search and selection of modern education technologies, as well as evaluation (attestation and ac creditation) of quality of educational programs, which should be come adequate to demands of the labour market;

- Development of a uniform system of mark units;

- Creation of a nationwide education quality assessment system.

The main instrument of increasing the investment attractiveness of the educational sector is creation of conditions of increasing the educa tional institutions economic independence and responsibility for their performance and output by ensuring a greater variety of their organiza tional and legal forms. In addition, the planned modifications of the or ganizational and legal forms and methods of budgetary financing would help bridge the gap between public and non government universities. It can be assumed that in the course of the reform a relatively minor part of universities would retain the form of budget institutions, while the bulk of them would transform themselves into autonomous institutions (AI), and those of them that enjoy the greatest rate of extra budgetary incomes would most likely mutate into government (municipal) autonomous non for the profit organizations (PANO).

Major avenues of the optimization of the budget network in the edu cational sector are: restructuring the urban and rural schools network with account of the necessity to shut down educational institutions with just a few students; assignment of PVT and SVT institutions to the re gional level; assignment of the bulk of federal universities and special secondary education institutions remained on the federal level under the purview of the Federal Agency for Education.

The re assignment of the PVT and SVT institutions to the regional level derives form the recently implemented reform on division of pow ers between the tiers of the budgetary system, for the reform has failed short of considering a number of related issues. As most regional budgets experience shortage of funds, it can result in a drastic fall in the number of PVT and SVT institutions, i.e. breaching the constitutional guarantee of the free provision of the primary and secondary vocational training to all those who wish to receive it. In addition, in the event a given educational institution is financed out of the regional or municipal budget, its services become free only to citizens of the given region or municipality, while those who reside in any other region or municipality theoretically will have to pay for the noted tuition services. Finally, that may provoke certain social problems; as such educational institutions so far have carried out the function of absorbing unemployment among the young from the needy or socially deprived families.

The process of reassignment of federal universities and special sec ondary education institutions remained on the federal level under the purview of the Federal Agency for Education will entail complexities, of which the main ones will be associated with the necessity to administer and directly finance the doubled number of recipients of budget funds, while the Agencys technical and staff capacity most likely would remain unchanged.

There also may arise certain complexities with the re assignment to the Federal Agency for Education of universities that currently fall under the health care system and those that operate under the Ministry of Cul ture, Ministry of Agriculture and Ministry of Transportation. The com plexities will be associated with the fact that such universities would loose their bases for a free student practice and, accordingly, the qual ity of their training will fall. The problem can be remedied by several ministries jointly founding the higher education institutions, however, the effective law currently bans that.

It is intended to implement drastic changes in the system of financ ing the education sector.

As concerns pre school institutions, the financing of their educa tional programs should be carried out by means of allocation of subven tions to municipalities from the regional budget, while the financing of social services they deliver will be secured by the municipality and par ents.

The main task in the general education system is a consistent transi tion to the standardized per capita financing of educational institutions.

The PVT and SVT institutions should be financed basing on the budgetary financing standards that should be differentiated according to the respective profile of vocational training.

The transition to the two level model of higher education that is, the Bachelor=s and Masters raises anew the issue of the transition to financing the university tuition on the basis of GPEL. It is suggested that the GPEL mechanism should be employed only on the Bachelor level, while the Master level should be based on a different method of budg etary financing that is, a one size fits all standard for all the students enrolled in this particular course. The standard may be differentiated only across specialties of training, as well as with account of regional specifics. Meanwhile, the admittance to the course on the basis of budgetary financing should be drastically limited to up to 10% of the graduates from the Bachelor = s, while the others should pay for their tuition. The Master level also suggests a possible employment of such a mechanism of financing as educational loan or subsidy.

It is also suggested to employ government subsidies while training future civil servants. To become eligible to the subsidy, the enrolee should sign a contract on working on a non prestigious, poorly paid po sition in the budget sector upon graduation, otherwise the subsidy is subject to repayment to the budget. The employment of the govern ment subsidies system should substitute for the current targeted ad mittance practice that does not suggest any obligations on the part of the student, thus being extremely inefficient.

Overall, at present experts are in search for new organizational form of educational institutions operations and mechanisms of budgetary and extra budgetary funding which would enable the education sector to more efficiently benefit from financial resources allocated to it, with out constraining the access to the higher education, but increasing at the same time its quality.

4.3. Science 4.3.1. Main avenues of reforming the research organizations network and budgeting in the research area.

The analysis of the existing assessments of the research organiza tions network reform and budgeting in the research area demonstrated that all the earlier research efforts in the area can be divided into two separate groups:

- Reform of the network of research and technical organizations, in cluding an analysis of the situation in the public research sector, without specifying organizational and legal forms of the noted or ganizations; and - Optimization of budgeting in the area of financing R&D, without link ing that to the noted reform of the network of research and techni cal organizations or budget funded research institutions.

In the frame of the first group, an inventory of Russias research in stitutions was held. It resulted in the respective register. In addition, there appeared proposals on possible reform avenues of the research organizations network that is, to change the organizational and legal form of public research organizations, primarily those operating in the humanitarian sphere.

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