However, this does not mean that a university’s senate – as the custodian of its autonomy – should be exempt from all external influence on decisions concerning research and education activities. Moreover, according to the HCC’s logic, decisions of BoTs on matters affecting research and educational issues meet the requirements of university autonomy as long as there is a real opportunity for the senate to influence them. In the new legislation, BoTs have broad decision-making powers on the university budget, organizational and operational regulations, the asset management plan, business activities, and nominating candidates for the position of rector. These decisions directly affect the conditions of research and teaching
autonomy, thus our test was devised for the purpose to examine the factors which could weaken this autonomy or even heighten the risk of it being harmed. These factors are as follows:
1. The composition of the BoT: ratio of academics/scholars on the Board of Trustees. The proportion of academic trustees on the board indicates the extent to which decisions are made by scholars. These academics are not necessarily affiliated with the university managed by the given BoT. The risk of restricting academic autonomy is assumed to be proportionate to a lower ratio of academic trustees on the BoT. Comparative analysis shows that most BoTs are composed of a combination of non academic stakeholders and academics affiliated with the university. The degree of risk to research/education autonomy can be measured along the following scale: an entirely pure non-academic BoT (only non-academic trustees), a board with a minority of academics, a board with a minority of non-academics, and an academic-type BoT (containing academic trustees only).
2. The quality of regulation of the criteria for trusteeship (merit-based criteria, election, transparency) can show the extent to which trusteeship is based on professional merit, transparency, and open and democratic selection criteria.
3. The critical number of board trustees may enhance the professional and democratic decision-making of the board, based on the diversity of stakeholders. Universities have become large and complex institutions, with the result that over time, the diversity of BoTs has increased, growing to include a wide range of professionals. This can be accounted for by both governance experience and a representative democratic culture. It is fair to say that fewer trustees, and a greater uniformity among them carries a proportionate risk of unreasonable decision-making.
4. Rules for trusteeship rotation: a fixed-term mandate may increase both the accountability and the chance of maintaining the level of motivation of trustees. Modern governance cultures, whether in political, corporate or academic contexts, prefer fixed-term mandates for decision-makers to enforce principles such as accountability and responsibility. The risk of bad decisions can increase if there is no turnover among trustees due to the excessive duration of their mandate (including lifetime appointments).
5. The BoT’s decision-making power factor means the extent to which the board of trustees can decide on the organizational, operational and financial conditions of the university. Giving boards of trustees overly broad powers to decide on organizational and operational matters relating to education or research is risky.
5.1. The main elements of organizational autonomy include the capacity of the academic community to decide on academic structures, their operational rules and the establishment of organizational units.5 This capacity is key to creating the appropriate conditions for education and research. Other elements of autonomy may include the selection procedure for the heads of organizational units, setting nomination and dismissal criteria for university executives and for external trustees in university bodies. The risk of an unreasonable limitation to organizational autonomy can increase if the BoT has overly broad powers to decide on organizational and operational matters related to education or research. For most of the top 100 universities, the power of their Boards of Trustees does not extend to organizational and operational details and rules. As policy-makers, they mostly serve as a bridge between the university and the world by bringing in experience and perceptions gained outside the university. They provide leadership in capacity building initiatives and oversee the university’s relations with other stakeholders. To help meet these goals, the trustees determine the long-term allocation of resources, making decisions in the context of the needs and expectations of the university.
5.2. Financial autonomy is the capacity of the academic community to decide on the amount and type of public and private funding, to maintain a budget surplus, to borrow money or to charge students tuition fees.6 The risk of an unreasonable limitation on financial autonomy may increase if the BoT has overly broad powers to decide on budgetary matters related to education or research.
To sum up, for organizational, operational and financial matters, the assessment of the scale of authority depends on the extent to which a BoT is obliged to take into account the opinion and proposals of the academic community, namely the senate. In theory, there are different degrees of risk that coexist with factors that may possibly harm the research and educational autonomy of the university. Purely non-academic boards of trustees and those where academics are in the minority can considered risky. If there is no (or only weak) rules on merit-based criteria for BoT membership, this may result in an unpredictable quality of the decisions it will take, due to uncertainty as to the professional quality of the trustees. Another
uncertainty regarding the professionalism and operational stability of the board may result from a low number of trustees, while appointing trustees for life or for an unreasonably long time (10 years or more) can lead to other governance problems such as weak accountability.
The results of the research on the external BoTs of the top 100 universities of the QS World University Ranking 2022 can be summarised as follows: Trustees representing the university’s scientific community are usually included on the boards, and, indeed, on most of the boards they are in the majority. Only a few of the BoTs were composed entirely of non-academic members, nor were many of them all academics. Among the world’s top 100 universities with purely non-academic BoTs, or with BoTs in which academics are in the minority, Harvard, UCL, Imperial College London, the University of Pennsylvania and Stanford (US) are included. BoTs where academics are in the majority or where all the trustees are academics include Oxford University, Cambridge University (UK), the University of Chicago and the National University of Singapore.
The board trusteeship is partly based on the co-optation of the trustees and partly on the delegation of the university, but in all cases merit-based criteria are regulated in detail in the board’s founding documents. The number of board trustees varies between 20 and 40 persons, which aims at enhancing both professional diversity and the legitimacy of decisions taken. Trusteeship is based on fixed-term mandates, thus periodic rotation, accountability and renewal of motivation are ensured. The activities of the BoTs include devising strategies for development, deciding on university policy issues and maintaining funding security. The board rarely takes decisions on the organizational, operational and financial details of the university.
Among the world’s top 100 universities, there is a wide range of authority models from policy-maker-type to ruler-type BoTs. For most of non-academic type BoTs, however, the rules provide for mandatory co-decision-making, for a consultation process with academics or with the senate of the university, in particular in research and education matters, e.g. at UCL (UK), Stanford and Harvard.
The remainder of this study will analyse concerns about the research and educational autonomy of universities in relation to excessive authority of BoTs to make operational, organizational and financial decisions, in the Hungarian context.
4 International University Association Policy Statement 1998: Academic Freedom, University Autonomy and Social Responsibility
5 EUA University Autonomy in Europe, The Scorecard IV. March 2023. 20.
6 EUA University Autonomy in Europe, The Scorecard IV. March 2023. 30.
THE RESEARCH-EDUCATION AUTONOMY TEST APPLIED TO THE NEW HUNGARIAN UNIVERSITY GOVERNANCE MODEL
As discussed above, the EUA has argued that the new university governance model in Hungary implemented since 2019 has shown significant divergences from the governance practices of European universities. This study has examined in detail the divergent points of Hungarian BoTs from the general practices of the top 100 universities. It is worth noting that the BoTs of the “model-changing” Hungarian universities are still in the learning stage, and that the frameworks provided by the law and the practice of new governance are still developing. Based on the current situation, the following conclusions can be drawn from the 5-REACT test:
1. In Hungary academic trustees on the BoTs are usually in the minority, usually 1 or 2 out of 5 trustees. Between 2019 and 2021, board members were appointed by the minister
responsible for Higher Education at the time of the establishment of the BoTs, while in the future new trustees will be selected (co-opted) by the BoTs themselves. There are no legislative or internal regulations on the professional qualifications of trustees. However, due to the EU Commission’s concerns about the board membership of ministers and active government politicians, many of them resigned from the BoTs in February 2023.
2. Currently there is no legislation setting the criteria for BoT membership, nor is there any internal regulation of BoTs, although the founding document may set requirements regarding the qualifications, educational and professional backgrounds of BoT trustees. In 2022, some minor legislative changes were made to provide conflict of interest rules for trustees: “[a] person who is unable or only limited to carry out his duties impartially, objectively and impartially due to his economic interest or any other direct or indirect personal interest or circumstances (including family, emotional reasons, political or national affiliation) is obliged to refrain from any activity which may be contrary to the interests of the foundation or the affiliate, or directly or indirectly providing assets to all of them.” (IX. Act of 2021 sec 15 (3))
3. According to the Act, the mandatory number of trustees of the BoTs shall be five.
4. The term of membership is not limited by law, and due to the lack of regulation the founding charters stipulate trustee mandates of indefinite durations. However, in March 2023 the government announced a proposal for new legislation which would set a time limit for the mandate of trustees, in response to criticism from the EU Commission in this regard.
5. The decision-making authority of the BoTs applies to all organizational, operational and financial issues of the university, including educational and research programmes. In
2021, the HCC requested that the legislator restrict the decision-making authority of the BoTs so that they can only decide on the budget and the rules of the organization and operation of the university if the senate may have a “substantive influence” (the right of opinion) on the decision-making of BoTs. The legislator amended the regulation accordingly [IX. Act of 2021 sec 22. (4)].
In its report, the EUA recommended that Hungarian universities be formally involved in the selection of the members of the board of trustees. It also urged the Hungarian state to redesign the balance of powers between the BoT and the university senate to ensure a clear allocation of competences, guaranteeing that the university senate can rule on academic matters without being subject to a derogation clause in the law.7
The following section analyses how the authority of newly established BoTs over the organizational, operational and financial matters of the universities having “changed models” is being subjected to constitutional scrutiny by the Hungarian Constitutional Court.
7 The Evolution of University Autonomy in Hungary: A Complementary Analysis to University Autonomy in Europe IV: The Scorecard 2023. 11.
UNIVERSITY AUTONOMY ON CONSTITUTIONAL TRIAL
A recent HCC decision, mentioned above, ruled that in universities maintained by PITs, BoTs can take decisions on major issues related to the operation of the university on the strict condition that they provide “mere influence” in the decision making of the university’s senate.8
Based on this case law, it is worth investigating the autonomy requirements of constitutional compliance in cases where the BoT rejects an opinion or proposal made by the senate. The HCC developed the concept of the “limited autonomy” of universities. Limitations may result from parliamentary legislation, from the university’s maintainer (BoTs or government) or from other stakeholders. A university and its senate are never “totally autonomous”, since the responsibility for education and research is always shared with other stakeholders. The maintainer has a primary liability that cannot prevail if the maintainer is not given ultimate decision-making power. The HCC concludes that the responsibility of the maintainer “precedes” the responsibility of the senate, therefore the BoT should be given decision-making powers extending to all essential matters of the university. The question that remains concerns the “minimum of autonomy” i.e. the minimum rights of the senate to express its opinion on the decision-making process of the BoT. The “relativist” interpretation of university autonomy means that university autonomy constitutes a certain level of independence from stakeholder intervention that is necessary for the university to independently regulate its own internal organizational functioning (internal allocation of financial resources, acquisition of non-state revenue, hiring of staff, provision of educational conditions, organization of education and research). At this point it is worth referring to the definition of the IAU: “The principle of Institutional Autonomy can be defined as the necessary degree of independence from external interference that the University requires in respect of its internal organisation and governance, the internal distribution of financial resources and the generation of income from non public
sources, the recruitment of its staff, the setting of the conditions of study and, finally, the freedom to conduct teaching and research”.9
The central idea is that the “necessary degree of independence”, i.e. the independence of the university, can be limited to this level. The HCC developed a minimum requirement for the “necessary degree” in such a way that the senate must be given a right to give an opinion on and influence those BoT decisions that affect academic autonomy. The question is whether the maintainer has the right to decide differently or contrary to the opinion of the senate. According to the HCC, the BoT is entitled to do so, although the senate’s proposal “must be taken into account in a transparent manner by the maintainer in its decision-making”. Accordingly, the BoT is obliged to demonstrate that the senate had an opportunity to “merely”
influence the BoT’s decision on the operation of university (HCC p. 25) as well as on matters relating to research and teaching autonomy (HCC p. 26).
It remains unclear whether the maintainer must accept the substantive opinion or proposal of the senate or whether it can reject them in whole or in part. In our view, the HCC’s decision did not clarify this issue, as it remains open to two interpretations. One approach would be that the maintainer is bound by the senate’s proposal; i.e. the BoT must accept and enforce the senate’s proposals (obligation of enforcement). The other reading would be that the maintainer’s obligation to “take into account” the senate’s proposal means that it is allowed to reject a proposal if it does so in a transparent and reasonable manner (obligation of consideration). The substantial difference between the two kinds of obligations of the BoT is evident. However, both can be seen as “mere influence” of the senate on the decision-making of the BoT. For example, if the senate expresses its opinion that the university should have a History of Science Department, but the maintainer (BoT) replies that it is not necessary and rejects the proposal with appropriate reasoning, the HCC will find that the BoT acted in accordance with the principle of academic autonomy, as it took the senate’s proposal into consideration. The concept of “obligation of consideration” seems to be the “reasonable degree” of limitations on academic autonomy cited by the HCC. This concept refers to two conjunctive conditions. First, the BoT must conduct a meaningful exchange of views with the senate and consider its proposals in a documented manner. Second, if the maintainer makes a decision that differs from or rejects the opinion of the senate, this should be based on substantive reasons.
At this point, however, we must return to the constitutional content of research and educational autonomy. If the disagreement of the maintainer and the senate concerns the content and methods of research and teaching (under Article X (3) of the Fundamental Law), or scientific matters and the freedom of researchers (protected under Article X (2) of the Fundamental Law), it would be contrary to the Fundamental Law if the opinion of the senate, as the custodian of educational and research autonomy, were to be rejected or distorted by the maintainer. This bring us back to the paradox of how educational and research autonomy can prevail if the maintainer decides differently from the position of the senate. The answer depends
on the content of the decision of the BoT and the reasoning for it. Based on the “substantial senate influence” requirement developed by the HCC, the reasoning of the maintainer’s decisions must be subject to a double substantive criterion: a decision by the maintainer that differs from or rejects the senate’s opinion can only be considered constitutional if (1) it has documented reasoning of essential interests related to university research and education, and (2) the decision does not affect the content, methods and scientific issues of research and teaching. Both aspects require a very thorough formulation of the justification and assessment provided by the BoT.
8 Hungarian Constitutional Court Decision No. 21/2021. (VI. 22.)
9 International University Association Policy Statement 1998: Academic Freedom, University Autonomy and Social Responsibility
CONCLUSIONS
It is increasingly important to understand the changing social roles of universities and higher education policies reflecting to these changes. Recent changes are heading in two dimensions: the nature of production (product/process), and the relation to the social, economic and political system (consensus/dissensus) (Kováts, 2021: 76). The above trend, seen in universities changing from a public to a private model, heightens the importance of assessment frameworks and academic autonomy tests to scrutinise the authority and activities of university BoTs. The evolving Hungarian situation may enrich theoretical debates on how the authority of BoTs affects academic autonomy and also highlight the threats that BoTs may
pose to universities’ academic autonomy. Currently, Hungarian BoTs still seem to be in the critical range of the research and teaching autonomy, and it would be desirable to enhance the influence of the university senates on BoT decisions. However, despite risks arising from the current regulatory framework for the operations of BoTs, one cannot predict how the culture and practice of the newly established BoTs will evolve over time in terms of academic autonomy in Hungary.
In a constitutional analysis, the enforcement of academic autonomy through both the senate and the autonomy of the maintainer at the same time seems to be paradoxical if there is a difference of opinion between the two bodies. This study aimed to develop the preconditions and a conceptual framework for resolving this paradox. The answer ultimately depends on the interpretation to be delivered by the ordinary court in the near future. If judicial practice follows the “formal” approach to university autonomy, the “obligation of consideration” of the senate’s proposal by the BoT may satisfy the constitutional requirements even if the maintainer does not agree with the senate. The “constitutional requirement” imposed by the HCC
left the above question open for judicial interpretation to some extent. We might prefer a situation in which there was no need to set another precedent and where maintainer/senate “tandems” could build universities together in collaborative way. A constitutional interpretation of university autonomy would require clear legal concepts and ordinary courts, or ultimately another constitutional court decision that would end the current autonomy debate.