of the first challenges that Maria Theresa and her advisers faced was to restore the legitimacy and authority of the dynasty, although was slowly replaced by a need to establish the needs of State. Governance and finance Maria Theresa promulgated financial and educational reforms, with the assistance of her advisers, notably Count Friedrich Wilhelm von Haugwitz and Gerard van Swieten. Many reforms were in the interests of efficiency. Her financial reforms considerably improved the state finances, and notably introduced taxation of the nobility for the first time, and achieved a balanced budget by 1775. At an administrative level, under Haugwitz she centralised administration, previously left to the nobility and church, along Prussian models with a permanent civil service. Haugwitz was appointed head of the new Directorium in publicis und cameralibus in 1749. By 1760 it was clear this was not solving Austria's problems and further reform was required. Kaunitz' proposal for a consultative body was accepted by Maria Theresa. This Council of State (Staatsrat) was to be based on the French Conseil d'État which believed that an absolutist monarch could still be guided by Enlightenment advisors. The council was inaugurated in January 1761, composed of Kaunitz the state chancellor (Staatskanzler), three members of the high nobility (Staatsminister), including von Haugwitz as chair (Erster Staatsminister), and three knights (Staatsrat), which served as a committee of experienced people who advised her. The council of state lacked executive or legislative authority. This marked Kaunitz' ascendency over von Haugwitz. The Directory was abolished and its functions absorbed into the new united Austrian and Bohemian chancelleries (Böhmisch-Österreichische Hofkanzlei) in 1761. Education While Von Haugwitz modernised the army and government, van Swieten reformed health care and education. Educational reform included that of Vienna University by Swieten from 1749, the founding of the Theresianum (1746) as a civil service academy as well as military and foreign service academies. An Education Commission (Studienhofkommission) was established in 1760 with a specific interest in replacing Jesuitical control, but it was the papal dissolution of the order in 1773 that accomplished this. The confiscation of their property enabled the next step. Aware of the inadequacy of bureaucracy in Austria and, in order to improve it, Maria Theresa and what was now referred to as the Party of Enlightenment radically overhauled the schools system. In the new system, based on the Prussian one, all children of both genders from the ages of