In light of changes in funding systems, new approaches to financing have become part of discussions within the higher education sector and the subject of numerous research studies. These studies focus particularly on the importance of public higher education, methods for measuring its effectiveness, and the sustainability of the system during periods of increasing public expenditure. The funding of higher education institutions in Slovenian and European countries, and its adequacy, were examined in this research through a review of domestic and foreign literature, an analysis of legislative frameworks, an analysis of the revenues of Slovenian public universities from 2018 to 2022, and in-depth interviews. Key advantages and challenges of the current system were highlighted, and key proposals for changes were provided based on the analysis of literature and revenues of public universities, findings from conducted interviews, and comparative analysis with other European countries and trends in the European context. This research confirmed that public funding constitutes the largest share of revenues for Slovenian public universities. Based on the findings, it can be assessed that the current system, considering the country's size, is fundamentally adequate but requires certain changes/improvements. These include adjustments for the growth of funds, setting a higher target percentage of GDP, and regulating the financing of investments and investment maintenance. The research findings contribute to a comprehensive understanding of the field and the issues addressed within a broader European framework. They encourage further research, as the field is complex and requires both research and regulation. The results of the research can aid decision-makers and planners in finding new solutions and preparing changes to the current system. Future research should aim to obtain certain missing data from universities, examine the implementation of the new Scientific Research and Innovation Activities Act and the long-term effects of changes, and address the perspective of decision-makers.
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