Cruesp's statement on Bill No. 529/20
The Council of Rectors of São Paulo State Universities (Cruesp) made, in recent days, a series of contacts with state deputies who are analyzing the content of Bill No. 529/20, which establishes fiscal adjustment measures to balance public accounts, seeking to sensitize them to the threat to university autonomy that the approval of the project represents under the terms in which it was proposed.
Despite the relevance of the matter addressed in PL 529/20, its article 14 directly affects the planning and management of São Paulo state universities and Fapesp, by determining the transfer of the financial surplus, recorded in the balance sheet, “for payment of retirement and pensions under the State’s own Social Security Scheme”. It is also worth highlighting that, despite the government stating that the measure is necessary because of the economic crisis caused by the pandemic, the project proposes that these surpluses be returned to the State Treasury every year, following the approval of the law.
It is important to remember that any surpluses make up, over time, the financial reserve essential for the management of universities and demonstrate the solvency of the institutions. State transfers, as they are linked to ICMS, suffer from variations in the state and country's economy. In the last decade, the three universities had great financial difficulties due to the reduction in ICMS collection, and these were overcome by tough cost containment measures and the use of their financial reserves.
It should also be noted that, with the autonomy of financial and budgetary management, the payroll has been financed by the share of São Paulo state universities and the reserves have served to support the payment of both active and retired employees. Thus, this specific item of the proposition violates university autonomy in financial and asset management, achieved more than three decades ago, and which has been fundamental to the excellence of teaching, research, extension and health care in the State of São Paulo .
Fortunately, several parliamentarians recognized the error in this proposition and presented at least 45 amendments that refer to article 14, in order to exclude universities and Fapesp from the mandatory nature of this transfer. We take this opportunity to thank parliamentarians for their recognition and support for public higher education in the State of São Paulo.
Universities have always been open to dialogue with the Legislature and remain firm in establishing increasingly frequent partnerships with the state Executive, in an attempt to qualify public policies in the most diverse fields of knowledge, to continue contributing to the strengthening of science and of higher education, in addition to fulfilling its social role in providing health care to the population of São Paulo. Universities have also worked strongly with the state government to clarify and guide decisions related to the pandemic that is afflicting society.
The autonomy of universities is part of the solution, not the problems, so that the State of São Paulo can make the necessary adjustments at the moment and overcome this challenge.
São Paulo, August 20, 2020
Council of Rectors of São Paulo State Universities (Cruesp)
