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The institutional funding is a major source of funding for the public universities in Romania, reason why its allocating mechanism is particularly significant. Romanian higher education funding has always been a sore spot and a highly controversial topic of debate for both members of the political class and of the civil society. For a long time they have been searching for the best solutions regarding the university funding, as a key lever for shaping and supporting a high quality academic education system. In this context, through this paper we propose to highlight the current mechanism for allocating the institutional funding to public universities in our country. Structurally, the paper begins with exposing the competences for the budgetary funding and the structure of the institutional funding for universities presentation, after which it focuses on the current model of allocating basic and additional financing. The end is intended to the conclusions, through which we aim to capture the impact of the state decisions regarding the funding methodology on academic education.