Education is currently one of the key resources that enable countries to flourish and grow economically; as world experience has shown, the importance of this factor will increase steadily. To a large extent, the full-fledged restructuring of the Russian economy depends on the character and effectiveness of transformations in Russia's system of education, in particular higher education, the modernization of which is not yet complete. There are still no ready answers to the question of which model of development of education will turn out to be the best for the New Russia and the extent to which it will be in keeping with the needs and interests of an innovative economy. The present article will look at the following issues: (1) the absolute and relative indicators of the financing of Russia's system of education; (2) the most pressing issue in the Russian system of education; (3) the present procedure of the budget financing of salaries that are paid to college and university professors and instructors; (4) the characteristics of the financing of the training of master's degree holders in the higher educational institutions of Russia; and (5) the adoption of the new system of salaries paid in federal institutions of higher learning. (Contains 3 tables and 1 figure.)